Answer

1. F

   Facts

   Common RCM items are legal services from advocates, goods transport agency services, sponsorship, services from a director to a company, import of services, and specified supplies from unregistered persons, such as commercial property rent in notified cases. Each is paid in cash under Sec 9(3) or 9(4).

2. P

   Provisions and law

   • Sec 9(3), CGST Act 2017Tax on notified supplies is paid by the recipient under reverse charge
   • Sec 9(4), CGST Act 2017Notified classes of registered persons pay reverse charge on specified supplies from unregistered persons
   • Sec 2(82), CGST Act 2017Output tax excludes tax payable under reverse charge, so RCM tax is paid in cash
3. A

   Analysis

   Search your bank statement and expense ledgers each month for payments to lawyers, transporters, foreign software or ad platforms, and directors. A foreign SaaS subscription of $500 a month is import of services, taxable under RCM at 18 percent. Missed RCM is easy for officers to spot from your own books.

4. C

   Conclusion

   1. 1Search ledgers for RCM categories each month
   2. 2Compute tax and pay it in cash in GSTR-3B
   3. 3Claim eligible ITC on it in the same return
   4. 4Keep a running RCM register

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