GST · Reverse Charge Mechanism · Section 9(3)/9(4)

Reverse Charge (RCM) GST Calculator

Find the GST you must pay in cash directly to the government under reverse charge — with the CGST/SGST or IGST split, and the ITC you can claim back.

Category
GST
Takes about
1 min
Updated
Sep 2026
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  • Rules cited on the page
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Calculator

Enter your figures — the result on the right updates as you type.

Full breakdown below ↓
🧾 Taxable value
Value of supply Invoice value on which RCM applies
₹
This is the taxable value of the inward supply (goods or services) on which you, the recipient, are liable to pay GST under reverse charge.
% GST rate
Applicable rate
📍 Place of supply
Transaction type
Intra-state supplies split GST equally into CGST and SGST; inter-state supplies attract a single IGST at the full rate.

RCM computation breakdown

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Disclaimer: Indicative estimate. Reverse charge applies only to notified goods/services under Sec 9(3) and to notified purchases from unregistered suppliers under Sec 9(4). ITC eligibility depends on the use of the supply and other conditions of the CGST Act.

How reverse charge works

Under the Reverse Charge Mechanism (RCM), the liability to pay GST shifts from the supplier to the recipient. Instead of the supplier collecting tax and depositing it, you — the buyer — pay the GST directly to the government, raise a self-invoice for the purchase, and can then claim that same GST back as input tax credit if the supply is used for your business.

Step 1

Identify RCM supply

Check if the inward supply is notified under Sec 9(3) or is a Sec 9(4) purchase from an unregistered dealer.

Step 2

Pay GST in cash

Compute GST = value × rate and pay it in cash through the electronic cash ledger — it cannot be set off against ITC.

Step 3

Raise a self-invoice

Issue a self-invoice (and payment voucher) for the purchase as required under Sec 31(3)(f).

Step 4

Claim ITC back

In the same or a later period, claim the RCM GST as input tax credit if the supply is used for business.

Worked example

Suppose you receive a notified service worth ₹1,00,000 attracting 18% GST on an intra-state basis. Under reverse charge, you pay the ₹18,000 GST directly to the government, split equally into CGST and SGST, and claim it back as ITC if used for business.

₹1,00,000 @ 18% · intra-state
Taxable value₹1,00,000
CGST @ 9%₹9,000
SGST @ 9%₹9,000
RCM GST payable in cash₹18,000
Claimable back as ITC₹18,000

Key terms explained

Self-invoice

When you buy from an unregistered supplier under RCM, you must issue an invoice to yourself (Sec 31(3)(f)) and a payment voucher, since the supplier cannot raise a GST invoice.

Cash payment only

RCM tax must be paid in cash through the electronic cash ledger — you cannot use existing input tax credit to discharge a reverse-charge liability.

ITC on RCM

The GST you pay under reverse charge is available as input tax credit in the same or a later month, provided the goods/services are used for your business.

Sec 9(3) vs 9(4)

9(3) covers specific notified supplies (GTA, legal, director services, etc.); 9(4) covers notified purchases from unregistered suppliers.

Questions people ask

Short answers on Reverse Charge GST (RCM). Tap a question to open it.

01What is reverse charge under GST?

A mechanism where the recipient, not the supplier, is liable to pay the tax. It applies to notified goods and services under section 9(3), and to specified supplies received from unregistered persons under section 9(4).

02Which common services attract reverse charge?

Goods transport agency services, legal services from an advocate or a firm of advocates, sponsorship, services of a director to the company, security services, renting of motor vehicles in specified cases, and import of services.

03Can reverse charge tax be paid from input tax credit?

No. Tax under reverse charge must be paid in cash through the electronic cash ledger. Credit for it becomes available afterwards, subject to the usual conditions in section 16.

04Do I have to register for GST if I only receive reverse charge supplies?

Yes. Section 24 makes registration compulsory for a person liable to pay tax under reverse charge, irrespective of turnover.

05What document is issued for a reverse charge supply?

The recipient issues a self-invoice where the supplier is unregistered, and a payment voucher at the time of paying the supplier. Both are required by section 31(3).

Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.