Under the Reverse Charge Mechanism (RCM), the responsibility to pay GST shifts from the supplier to the recipient. You are liable to pay RCM if:

• You are a registered business receiving goods/services from an unregistered supplier (if notified).
• You receive services like legal, GTA (transport), director’s services, import of services, etc.
• You are a recipient of notified goods like cashew nuts, bidi wrapper leaves, tobacco leaves, etc. under Section 9(3) or 9(4) of the CGST Act.
• You import services from a foreign vendor — e.g., SaaS subscriptions, consultancy, hosting, or cloud services.
• You are a body corporate receiving services from a security agency, advocate, or recovery agent.

Important: The recipient must pay the tax in cash (via challan) and cannot use input tax credit (ITC) to discharge RCM liability.

After paying RCM, the recipient is eligible to claim the same amount as Input Tax Credit (ITC), subject to normal rules.

After paying GST under the Reverse Charge Mechanism (RCM), a registered taxpayer is eligible to claim the same amount as Input Tax Credit (ITC), subject to some important conditions.

✅ Steps to Claim ITC on RCM:

1. Generate RCM Invoice: Issue a self-invoice for the transaction (this tool helps you do that).
2. Pay GST via Cash Ledger: Use Form GST PMT-06 to deposit tax under RCM. ITC cannot be claimed unless GST is paid in cash.
3. Declare Tax in GSTR-3B: In the month you pay RCM, enter the taxable amount and tax paid in:
   • Table 3.1(d): “Inward supplies liable to reverse charge”
4. Claim ITC in the Same GSTR-3B: Add the same tax amount under:
   • Table 4A(3): “Inward supplies liable to reverse charge”
5. Record the invoice in your books: Include the self-invoice in your purchase register for audit trail.

📌 Conditions to Claim ITC on RCM:

• You must be registered under GST
• You must have paid the RCM liability in cash (not through ITC)
• The goods/services must be used for business or taxable outward supply
• RCM invoice should be available and properly recorded

Example: If you receive legal services worth ₹10,000 and pay ₹1,800 GST under RCM, you can claim ₹1,800 as ITC in the same month in GSTR-3B.

Here’s a real-world example showing how a business can pay GST under RCM and claim Input Tax Credit (ITC) in the same tax period:

✅ Final Outcome: GST under RCM was paid in July 2025 and claimed as ITC in the same GSTR-3B return — maintaining full compliance and ensuring zero tax loss.

Always keep your RCM invoice and PMT-06 challan copy as proof during GST audits or assessments.

📌 What is Reverse Charge Mechanism (RCM) under GST?

Under GST, Reverse Charge Mechanism (RCM) shifts the tax liability from the supplier to the recipient of goods or services. This is applicable in specific notified cases such as legal services, goods transport agency (GTA), director services, and import of services.

Under the GST Act, if you receive goods or services that are covered under the Reverse Charge Mechanism (RCM), you (the recipient) are required to issue a self-invoice in place of the supplier.

As per GST Notification 66/2017 and updated GST Council clarifications, RCM applies in cases such as:

• Legal services from an advocate or firm
• GTA services (Goods Transport Agency)
• Import of services from abroad
• Services by directors to the company
• Unregistered supplier transactions (notified categories)

From July 2025 onward, GSTR-1 filings must include invoice-level details of RCM transactions under Table 4B. This tool ensures that you meet those recordkeeping requirements and avoid future notices or mismatches.

Always generate an RCM invoice at the time of payment or booking of expense — whichever is earlier — to remain compliant under GST law.

💡 Why Use an RCM Invoice Generator?

• Generate self-invoices for RCM transactions easily
• Include proper HSN/SAC codes and tax breakup (CGST/SGST)
• Stay compliant with GSTR-1 reporting rules
• Applicable from July 2025 onward for strict RCM tracking

📄 Sample Invoice Preview

You will get an output like this when you click "Generate Invoice":

Illustrative self-invoice for Legal Services under Reverse Charge (RCM)

📂 Common Services/Goods Covered under Reverse Charge Mechanism (RCM)

🧾 How This RCM Invoice Generator Works

This simple online tool helps you generate a GST-compliant invoice under the Reverse Charge Mechanism (RCM). It's especially useful for businesses required to issue self-invoices for transactions covered under RCM from July 2025 onward.

🔧 Steps to Use:

1. Enter Supplier Details:
   Enter the name and address of the unregistered supplier or service provider. Since RCM applies, supplier GSTIN is not required.
2. Fill Voucher Details:
   Provide a unique voucher number and the date of the transaction (voucher date).
3. Enter Recipient Details:
   Enter your (recipient's) name, address, and GSTIN. This is mandatory as you are issuing the invoice on behalf of the supplier.
4. Select Item Type:
   Choose whether the transaction involves Goods or Services. This affects whether HSN or SAC code is used.
5. Choose HSN/SAC Code:
   Select the relevant HSN (for goods) or SAC (for services) from the dropdown. The system will auto-fill the item description and applicable GST rate.
6. Confirm Description and Amount:
   The system auto-fills the description. Enter the taxable value (pre-GST amount).
7. Select if RCM is applicable:
   Choose "Yes" to apply CGST/SGST rates as per government rules.
8. Click Generate Invoice:
   The tool will calculate tax, generate a professional tax invoice, and allow you to print or save it.

📌 Output Includes:

• Auto-generated Invoice Number (based on your IP)
• CGST & SGST calculated as per selected HSN/SAC code
• GST-compliant tax invoice layout
• Print-friendly format (with print button hidden in output)
• Optionally save invoice as PDF

📝 Note:

From July 2025, all RCM transactions must be reflected in GSTR-1 under Table 4B. This invoice can be used for direct reporting or record-keeping.

🔍 SEO Keywords (for better visibility)

RCM Invoice Generator | Reverse Charge Invoice Format | Self Invoice under RCM | GST RCM Format PDF | HSN SAC GST Invoice | GST India Tools | GSTR-1 Self Invoice

❓ Frequently Asked Questions

📬 Need Help?

Contact us at support@filebob.in for any issues related to GST invoices, RCM applicability, or filing GSTR-1 returns.

This tool runs entirely on your browser. We do not store, transmit, or log any data you enter — including supplier, recipient, or invoice details.

Your invoice is generated instantly using your input, and nothing is sent to any server or third-party system.

Think of this as your offline invoice calculator with the convenience of your browser.