Reverse Charge Mechanism (RCM) Declaration
Record supplies on which you, as the recipient, pay GST under reverse charge, with the supplier's status and the tax worked out.
What it is
Normally the supplier pays GST. Under reverse charge, the recipient pays it instead: for goods and services notified under Section 9(3) of the CGST Act (for example legal services by an advocate, goods transport agency services in some cases, and renting of commercial property by an unregistered person to a registered person), and for supplies notified under Section 9(4). This declaration records the supplier, the nature and value of the supply, the RCM rate and the tax payable.
When it is used
- Services from an advocate, a goods transport agency or a director.
- Renting commercial property from an unregistered landlord.
- Purchases from unregistered suppliers covered by a Section 9(4) notification.
What the template covers
- Recipient name, GSTIN and address
- Supplier name, status and address
- Nature and date of supply
- Taxable value and RCM rate
- Tax payable
- Authorised signatory
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Declaration
Date; Place
Recipient (Paying RCM)
Recipient Name; GSTIN; Address
Supplier
Supplier Name; Supplier Status; Address
Supply
Nature of Supply; Date of Supply; Taxable Value (₹); GST Rate under RCM (%)
Signatory
Authorised Signatory; Designation
Stamp duty, registration and filing
Tax under reverse charge must be paid in cash through the electronic cash ledger; input tax credit cannot be used to pay it, though the recipient can usually claim ITC of the tax paid. Where the supplier is unregistered, the recipient issues a self-invoice within 30 days of receiving the supply (Rule 47A). The list of notified supplies changes by rate notification, so check the current list on cbic-gst.gov.in.
Generate the Reverse Charge Mechanism (RCM) Declaration
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. GST registration or returns)? Contact SKAG and Associates
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Frequently asked questions
Can ITC be used to pay GST under reverse charge?
No. RCM tax must be paid in cash; the recipient can then claim ITC of that tax if otherwise eligible.
What is a self-invoice?
An invoice the registered recipient issues for supplies received from an unregistered supplier on which it pays tax under reverse charge.
Does RCM apply to rent paid to an unregistered landlord?
Yes, for commercial property let to a registered person from 10 October 2024, except where the tenant is a composition taxpayer.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.