Answer

1. F

   Facts

   Legal services from an advocate and services of a goods transport agency are common reverse charge cases where the business recipient pays the tax. Reverse charge tax is reported in GSTR-3B Table 3.1(d) and must be paid in cash. The same tax can then be claimed as ITC if eligible.

2. P

   Provisions and law

   • Sec 9(3), CGST Act 2017Tax on notified supplies is paid by the recipient under reverse charge
   • Sec 2(82), CGST Act 2017Output tax excludes tax payable under reverse charge, so RCM tax is paid in cash
   • Sec 49, CGST Act 2017Payment of tax through the electronic cash and credit ledgers
3. A

   Analysis

   If you pay legal fees of ₹1,00,000, reverse charge tax at 18 percent is ₹18,000, paid in cash through GSTR-3B. You can claim ₹18,000 as ITC in the same return if the service is used for business. The net cost is cash flow, not tax, but missing it means interest and a likely notice when the data is matched.

4. C

   Conclusion

   1. 1List payments to advocates, GTAs and other reverse charge suppliers for the month
   2. 2Compute tax at the applicable rate
   3. 3Report the liability in Table 3.1(d) and pay it in cash
   4. 4Claim eligible ITC in Table 4(A)(3) of the same return

Reverse charge tax cannot be paid from the credit ledger.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.