Find
Expenses in the books on which reverse charge applies, such as legal fees from advocates, GTA freight and certain imports of services, should match RCM tax paid in returns.
GST
RCM liability check in GSTR-9C
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Provisions
Sec 9(3), CGST Act 2017; Rule 80(3), CGST Rules 2017
Analysis
Scan the ledger for advocates' fees, freight, sponsorship, director fees and imported services. Compare with RCM paid in GSTR-3B. If RCM was missed, pay it with interest through DRC-03; ITC may then be available, subject to Sec 16(4) timing. This is one of the most common gaps found in 9C.
Close
- Pull ledgers for RCM-type expenses.
- Compute RCM due on them.
- Compare with RCM paid in returns.
- Pay any shortfall with interest through DRC-03.
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