Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
This query is : Open
Ch.Siva Nageswara Rao
(Querist)
28 October 2026
Dear Experts,
We are engaged in the catering services business and are paying GST at 5% without availing Input Tax Credit (ITC), as applicable to our services.
We have been paying GST under the Reverse Charge Mechanism (RCM) on commercial rent at the applicable rate of 18% from August 2024 onwards. The RCM liability has been duly paid through the GST portal and reported in GSTR-3B. However, we have not availed any ITC on the RCM paid on commercial rent, considering the nature of our catering services and the applicable ITC restrictions.
Despite this, a positive balance is appearing in the RCM Liability/ITC Statement on the GST portal.
Is it mandatory to make the RCM Liability/ITC Statement balance zero when the RCM liability has been paid but the corresponding ITC has never been claimed?
How can it zero The RCM Liability/ITC Statement balance
Kindly provide your valuable guidance, including the applicable GST provisions and the procedure to be followed.
Thanks & Regards
Ch.Siva Nageswara Rao
We are engaged in the catering services business and are paying GST at 5% without availing Input Tax Credit (ITC), as applicable to our services.
We have been paying GST under the Reverse Charge Mechanism (RCM) on commercial rent at the applicable rate of 18% from August 2024 onwards. The RCM liability has been duly paid through the GST portal and reported in GSTR-3B. However, we have not availed any ITC on the RCM paid on commercial rent, considering the nature of our catering services and the applicable ITC restrictions.
Despite this, a positive balance is appearing in the RCM Liability/ITC Statement on the GST portal.
Is it mandatory to make the RCM Liability/ITC Statement balance zero when the RCM liability has been paid but the corresponding ITC has never been claimed?
How can it zero The RCM Liability/ITC Statement balance
Kindly provide your valuable guidance, including the applicable GST provisions and the procedure to be followed.
Thanks & Regards
Ch.Siva Nageswara Rao
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