Reverse Charge Mechanism Checker
Identify whether RCM applies to a specific transaction or supplier.
The Reverse Charge Mechanism Checker helps you identify whether RCM applies to a specific transaction or supplier type. Under RCM, the recipient, not the supplier, pays GST directly to the government. It is for businesses buying from suppliers in common RCM categories; search by service or supplier type to narrow the list.
Use the Reverse Charge Mechanism Checker
Under Reverse Charge Mechanism (RCM), the recipient pays GST directly to the government instead of the supplier. This tool helps identify common RCM categories. Use the search to find a specific service or supplier type.
| Type | Category | Applicability Note |
|---|---|---|
| Services | Goods Transport Agency (GTA) services | RCM (5%, no ITC to the GTA) where the recipient is a factory, society, co-operative society, registered person, body corporate, partnership firm or casual taxable person, unless the GTA has opted to pay tax itself under forward charge. From 22 Sep 2025 the forward-charge option is 18% with full ITC (earlier 12%). |
| Services | Legal services from an individual advocate (including a senior advocate) or firm of advocates | RCM where the recipient is a business entity located in the taxable territory (supplies to a business entity with turnover up to the registration threshold in the preceding year are exempt). |
| Services | Services by an arbitral tribunal | RCM where the recipient is a business entity located in the taxable territory. |
| Services | Sponsorship services by a person other than a body corporate | RCM where the recipient is a body corporate or partnership firm. From 16 Jan 2025 (Notification 07/2025-CT(Rate)), sponsorship services supplied by a body corporate are under forward charge. |
| Services | Services by Government or local authority to a business entity | RCM, except renting of immovable property, postal services (other than to Government), services in relation to aircraft or vessels, and transport of goods or passengers. |
| Services | Renting of immovable property by Government or local authority to a registered person | Recipient registered person pays under RCM (entry 5A). |
| Services | Renting of residential dwelling to a registered person | RCM from 18 Jul 2022 (Notification 05/2022-CT(Rate)), whatever the supplier's registration status (entry 5AA). |
| Services | Renting of commercial / other immovable property by an unregistered person to a registered person | RCM from 10 Oct 2024 (Notification 09/2024-CT(Rate)). From 16 Jan 2025 a recipient registered under the composition scheme is excluded (Notification 07/2025-CT(Rate)). |
| Services | Transfer of development rights / FSI, or long-term lease of land, to a promoter | Promoter pays under RCM (entries 5B and 5C), subject to the conditions in the notification. |
| Services | Director services to a company or body corporate | RCM on services supplied by a director in that capacity. Remuneration paid to a director as an employee (salary) is not a supply of service. |
| Services | Insurance agent services to an insurance company | Recipient carrying on insurance business pays under RCM. |
| Services | Recovery agent services to a bank, financial institution or NBFC | Bank / financial institution / NBFC pays under RCM. |
| Services | Direct selling agent (individual), business facilitator or agent of business correspondent | RCM where an individual DSA serves a bank or NBFC, a business facilitator serves a banking company, or an agent of a business correspondent serves the business correspondent. |
| Services | Copyright services from an author, music composer, photographer or artist | RCM on temporary transfer or permitting use of copyright in literary, dramatic, musical or artistic works to a publisher, music company or producer. A registered author may opt for forward charge by declaration. |
| Services | Renting of a passenger motor vehicle (fuel included) to a body corporate | RCM where the supplier is not a body corporate and does not issue an invoice charging GST under the forward-charge option with full ITC. The forward-charge rate for this service became 18% from 22 Sep 2025 (earlier 12%). |
| Services | Security services (supply of security personnel) to a registered person | RCM where the supplier is not a body corporate. Recipients registered only for TDS and composition taxpayers are excluded. |
| Services | Lending of securities | Borrower pays under RCM on securities lent through an approved intermediary under the SEBI scheme. |
| Services | Services by members of the overseeing committee to RBI | Reserve Bank of India pays under RCM. |
| Services | Import of services (supplier in a non-taxable territory) | Recipient in India pays IGST under RCM (Notification 10/2017-IT(Rate)); OIDAR services to non-business recipients are taxed on the foreign supplier instead. |
| Goods | Cashew nuts (not shelled or peeled) from an agriculturist | Registered recipient pays under RCM. |
| Goods | Bidi wrapper (tendu) leaves from an agriculturist | Registered recipient pays under RCM. |
| Goods | Tobacco leaves from an agriculturist | Registered recipient pays under RCM. |
| Goods | Silk yarn from a manufacturer of silk yarn from raw silk or silk worm cocoons | Registered recipient pays under RCM. |
| Goods | Raw cotton from an agriculturist | Registered recipient pays under RCM. |
| Goods | Metal scrap (Chapters 72 to 81) from an unregistered person | Registered recipient pays under RCM from 10 Oct 2024 (Notification 06/2024-CT(Rate)). |
| Goods | Used vehicles, seized / confiscated goods, old and used goods, waste and scrap supplied by Government | Registered recipient pays under RCM when supplied by the Central or State Government, Union territory or a local authority. |
| Goods | Lottery supplied by a State Government, Union territory or local authority | Lottery distributor or selling agent pays under RCM. |
| Goods | Priority Sector Lending Certificate | Registered recipient pays under RCM. |
Key RCM rules
- Time of supply: For services, the earlier of the date of payment or the date immediately after 60 days from the supplier’s invoice (Section 13(3)); for goods, the earliest of receipt of goods, date of payment or the date immediately after 30 days from the invoice (Section 12(3)).
- Tax payment: RCM is always paid in cash through Electronic Cash Ledger. Cannot use ITC to discharge RCM liability.
- ITC of RCM: Once paid, RCM amount can be claimed as ITC in the same return (if otherwise eligible).
- Self-invoice: Recipient must issue a self-invoice for RCM transactions where the supplier is unregistered (Section 31(3)(f)), within 30 days of receipt of the supply (Rule 47A, from 1 Nov 2024).
- Section 9(4): RCM on supplies from unregistered persons applies only to notified categories (currently purchases by real-estate promoters, Notification 07/2019-CT(Rate)). Metal scrap and commercial rent from unregistered persons are notified separately under Section 9(3).
Important note: This tool provides an indicative output only. It does not factor in every special provision, surcharge, exception, or recent notification. Verify with the firm before acting on any computation.
Frequently Asked Questions
What is reverse charge under GST?
Under the reverse charge mechanism, the recipient of goods or services pays GST directly to the government instead of the supplier. It applies to notified categories such as legal services from an advocate, goods transport agency services (unless the GTA opts for forward charge), director services to a company, security services from a non-corporate supplier, commercial rent paid by a registered person to an unregistered landlord, metal scrap bought from an unregistered person and import of services. Tax under reverse charge must be paid in cash through the Electronic Cash Ledger.
Can ITC be claimed on GST paid under reverse charge?
Yes. Once the reverse charge liability is paid in cash, the same amount can be claimed as input tax credit in the same return, if otherwise eligible. However, the reverse charge liability itself cannot be paid using existing input tax credit. Where the supplier is unregistered, the recipient must also issue a self-invoice for the transaction.
How do I use the RCM checker?
Search by service, goods or supplier type, such as advocate, GTA or director, or filter to show only services or only goods. The table lists common reverse charge categories with a note on when reverse charge applies. If nothing matches, reverse charge may still apply, as many specific cases are notified, so check the latest CBIC notifications.
Due in the next 30 days
GST- CMP-08 for Jul–Sep 2026 quarter
- GSTR-3B for September (monthly filers)
- GSTR-3B for Jul–Sep 2026 quarter (QRMP, 22nd-day States)
- GSTR-3B for Jul–Sep 2026 quarter (QRMP, Delhi and 24th-day States)
- ITC-04 for Apr–Sep 2026
Full compliance calendar → Statutory dates, which can be extended by notification. General information only.