Answer

1. F

   Facts

   Reverse charge applies to notified services such as GTA, legal services from advocates and services from directors, and to some goods. Scrutiny compares RCM paid with your expenses or with ITC claimed under RCM.

2. P

   Provisions and law

   • Sec 9(3), CGST Act 2017Recipient pays tax on notified supplies under reverse charge
   • Sec 61, CGST Act 2017Proper officer may scrutinise returns, inform discrepancies and seek an explanation
   • Sec 50, CGST Act 2017Interest at 18 percent on tax paid late, and on ITC wrongly availed and utilised
3. A

   Analysis

   Go through your profit and loss account for GTA freight, legal fees, director sitting fees and similar heads. Example: Rs 6 lakh legal fees paid in a year means RCM of Rs 1.08 lakh at 18 percent. If unpaid, pay through DRC-03 in cash with interest; you can then claim it as ITC in a later return, subject to Sec 16(4) time limits and the rules for RCM credit.

4. C

   Conclusion

   1. 1Review expense ledgers for notified RCM services
   2. 2Compute RCM due and compare with RCM paid
   3. 3Pay shortfall in cash through DRC-03 with interest
   4. 4Explain in ASMT-11 and attach the computation

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