GST Reverse Charge Calculator
Calculate the GST liability payable directly by the recipient under the reverse charge mechanism (RCM).
- Free to use
- No registration required
- Works on all devices
- Last updated
- 13-09-2026
Your result
₹18,000
GST payable under RCM
AI explanation
Formula
GST payable = value of supply × GST rateWorked example
₹1L supply, 18% GST under RCM
| Field | Value |
|---|---|
| Value of supply | ₹1,00,000 |
| Applicable GST rate | 18 |
| GST payable under RCM | ₹18,000 |
| Total cost to recipient | ₹1,18,000 |
Assumptions
- Under reverse charge, the recipient (not the supplier) is liable to pay GST directly to the government — this applies to specific notified goods/services and unregistered-supplier purchases.
- The GST paid under RCM is generally available as Input Tax Credit (subject to normal ITC conditions), which this calculator doesn't separately track.
Frequently asked questions
What is the reverse charge mechanism (RCM)?
Normally, the supplier collects and pays GST. Under RCM, this liability shifts to the recipient of goods or services — applicable to specific notified categories, and to purchases from unregistered suppliers in certain cases.
When does RCM apply?
For specific notified goods and services (e.g. certain legal services, GTA services, and supplies from unregistered dealers to registered ones in specified cases) as defined under GST law.
Can I claim Input Tax Credit on GST paid under RCM?
Generally yes, subject to normal ITC eligibility conditions — this makes RCM often a cash flow timing issue rather than an additional net cost, for registered businesses making taxable supplies.
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Sources
- Central Goods and Services Tax Act, 2017 — Section 9(3), 9(4) — Central Board of Indirect Taxes and Customs (CBIC). Effective 01-07-2017, checked 13-09-2026.
This calculator provides a general estimate only and does not constitute tax advice.
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