Delay in claiming RCM
This query is : Resolved
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19 September 2025
Dear Sirs : Can I claim amounts of RCM ( freight, rent, cab etc.) for financial year 2024-2025 in GSTR3B of September 2025.. And what is exemption limit for RCM ... Regards
19 September 2025
Yes, it is possible to claim amounts paid under Reverse Charge Mechanism (RCM) for expenses like freight, rent, or cab services for the financial year 2024-2025 in the GSTR-3B return for September 2025, provided the necessary conditions are met and the input tax credit (ITC) is availed before the specified deadline.
19 September 2025
GSTR-3B RCM ITC Claim Timeline
The last date to claim ITC on GST paid under RCM for invoices pertaining to FY 2024-25 is the due date for filing the GSTR-3B return for September 2025 (typically 20th October 2025), or the date of filing the annual return, whichever is earlier.
Any ITC not claimed by this deadline will lapse and cannot be claimed later.
Ensure that all required invoices and documentation for RCM payments are in order before filing.
The last date to claim ITC on GST paid under RCM for invoices pertaining to FY 2024-25 is the due date for filing the GSTR-3B return for September 2025 (typically 20th October 2025), or the date of filing the annual return, whichever is earlier.
Any ITC not claimed by this deadline will lapse and cannot be claimed later.
Ensure that all required invoices and documentation for RCM payments are in order before filing.
19 September 2025
RCM Exemption Limits
Goods Transport Agency (GTA) Freight: RCM is applicable only when the recipient is a registered entity; freight paid to unregistered transporters may be exempt. For GTA services, the exemption applies if the annual turnover of the provider is below ₹20 lakhs.
Rent: If property rent is paid by a registered person to a non-individual (for commercial purposes), RCM applies. There isn't a separate exemption threshold for rent under RCM, but GST registration is required only if the recipient's aggregate turnover exceeds ₹20 lakhs (₹10 lakhs in special category states).
Cab Services: If the service provider is non-body corporate and the recipient is a body corporate, RCM applies. Special exemptions may not apply for regular cab services, but RCM applicability depends on transaction details.
The general GST registration threshold (₹20 lakhs) also governs RCM for unregistered suppliers.
Goods Transport Agency (GTA) Freight: RCM is applicable only when the recipient is a registered entity; freight paid to unregistered transporters may be exempt. For GTA services, the exemption applies if the annual turnover of the provider is below ₹20 lakhs.
Rent: If property rent is paid by a registered person to a non-individual (for commercial purposes), RCM applies. There isn't a separate exemption threshold for rent under RCM, but GST registration is required only if the recipient's aggregate turnover exceeds ₹20 lakhs (₹10 lakhs in special category states).
Cab Services: If the service provider is non-body corporate and the recipient is a body corporate, RCM applies. Special exemptions may not apply for regular cab services, but RCM applicability depends on transaction details.
The general GST registration threshold (₹20 lakhs) also governs RCM for unregistered suppliers.
19 September 2025
GST paid under RCM must be discharged in cash and not through ITC.
Self-invoicing is required if services are received from an unregistered supplier.
All RCM payments should be properly documented and disclosed in Table 3.1(d) (tax liability) and Table 4(A)(2)/(3) (ITC) of form GSTR-3B.
For full compliance, confirm all RCM entries before the September 2025 GSTR-3B deadline, as delayed claims can result in ineligibility for ITC and possible interest or penalties.
Self-invoicing is required if services are received from an unregistered supplier.
All RCM payments should be properly documented and disclosed in Table 3.1(d) (tax liability) and Table 4(A)(2)/(3) (ITC) of form GSTR-3B.
For full compliance, confirm all RCM entries before the September 2025 GSTR-3B deadline, as delayed claims can result in ineligibility for ITC and possible interest or penalties.
19 September 2025
Good Luck...
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