GST RCM ON PROVISION BASE
This query is : Resolved
22 April 2024
If invoice raised in 10.04.2024 but expense related to mar.2024 and we take provision entry of expense in mar.2024 against that invoice but question arise regarding GST RCM.
when will GST RCM entry will booked against that invoice when payment made to party in 10.04.2024 or in mar.2024 while taking provision entry of expense.
when will GST RCM entry will booked against that invoice when payment made to party in 10.04.2024 or in mar.2024 while taking provision entry of expense.
22 April 2024
GST on RCM will be liable to be paid in Gstr3b of April 2024
23 April 2024
Yes I agreed the above said reply by Expert.
RCM will be pay on based in bill. So, Don't pay for provisions entry.
15 August 2025
In GST context, this phrase likely means anticipating GST liability under the Reverse Charge Mechanism—i.e., accounting for, or provisioning, RCM even before a supplier’s invoice is received.
Here’s how to proceed:
Identify whether RCM applies (notified supplies or unregistered suppliers).
If yes, issue a self-invoice and recognize the liability provisionally in your books.
Pay RCM tax via cash ledger only—ITC cannot be used at payment stage, but once paid, it becomes eligible for credit.
Determine the time of supply using RCM-specific rules (goods: earliest of receipt/payment/30 days; services: payment or 60 days) to calculate due date.
Report RCM obligations properly in returns—use GSTR-1 table for inward supplies, and RCM liability/ITC statement on portal.
Here’s how to proceed:
Identify whether RCM applies (notified supplies or unregistered suppliers).
If yes, issue a self-invoice and recognize the liability provisionally in your books.
Pay RCM tax via cash ledger only—ITC cannot be used at payment stage, but once paid, it becomes eligible for credit.
Determine the time of supply using RCM-specific rules (goods: earliest of receipt/payment/30 days; services: payment or 60 days) to calculate due date.
Report RCM obligations properly in returns—use GSTR-1 table for inward supplies, and RCM liability/ITC statement on portal.
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