alculate GST under Reverse Charge Mechanism (RCM) instantly with our free tool. Learn how RCM works, compliance steps, and avoid penalties.
What is Reverse Charge Mechanism (RCM)?
The Reverse Charge Mechanism (RCM) under GST shifts the responsibility of tax payment from the seller to the buyer for specific goods and services. This applies in cases like:
- Hiring freelancers, lawyers, or architects (unregistered under GST).
- Purchasing from unregistered suppliers.
- Using Goods Transport Agency (GTA) services.
Example: If you pay ₹20,000 to a freelance graphic designer (unregistered under GST), you must pay GST on their invoice under RCM.
Why is RCM Compliance Important?
- Avoid Penalties: Missing RCM payments can lead to 18% annual interest + fines.
- Claim Input Tax Credit (ITC): Only compliant businesses can claim ITC on RCM payments.
- Audit-Proof Records: Maintain clear records for GST inspections.
How to Calculate GST Under RCM
Use our free GST RCM Calculator or follow these steps:
Step 1: Identify Applicable Transactions
RCM applies to:
✅ Services from unregistered professionals.
✅ Imports of certain goods (e.g., tobacco, tendu leaves).
✅ Rent-a-cab services.
Step 2: Apply the GST Rate
Common RCM rates:
| Service/Goods | GST Rate |
|---|---|
| Freelancer services | 18% |
| GTA services | 12% |
| Legal services | 18% |
Step 3: Calculate GST Liability
Formula:GST = (Invoice Value × GST Rate) / 100
Example:
- Invoice value: ₹50,000 (freelancer services).
- GST rate: 18%.
- GST Liability: ₹9,000.
Why Use Our GST RCM Calculator?
Our tool is designed for businesses, CAs, and freelancers to save time and ensure accuracy:
✅ Instant Results
Get your GST liability in seconds—no manual calculations.
✅ Breakdown of CGST/SGST or IGST
See how much you owe to central and state governments.
✅ Mobile-Friendly & Free
Use it on any device without signing up.
✅ Compliance Alerts
Auto-generated due dates (e.g., “Pay by 20th of next month”).
Try the GST RCM Calculator Now →https://easycalculation.online/gst-reverse-charge-calculator/
Common RCM Scenarios & Solutions
Scenario 1: Hiring an Unregistered Architect
- Invoice Value: ₹1,00,000
- GST Rate: 18%
- Total GST: ₹18,000 (CGST + SGST for intra-state supply).
Solution: Use our calculator to generate a compliance report for your records.
Scenario 2: Inter-State Transport Services
- Invoice Value: ₹30,000
- GST Rate: 12% (IGST).
- Total GST: ₹3,600.
FAQs About RCM
1. When does RCM apply?
RCM applies when purchasing from unregistered suppliers or for specific services listed under GST law.
2. How to pay RCM GST?
- Calculate liability using our tool.
- File GST CMP-08 form by the 18th of the following month.
3. Can I claim ITC on RCM payments?
Yes, if you’re a registered taxpayer and have filed returns correctly.
4. Is RCM applicable for exports?
No, exports are zero-rated under GST.
Conclusion
Don’t let complex GST rules stress you out. With our GST Reverse Charge Calculator, you can:
- Save time on manual calculations.
- Avoid costly compliance errors.
- Focus on growing your business.
Calculate Your RCM Liability Nohttps://easycalculation.online/gst-reverse-charge-calculator/w →
