Rcm
This query is : Resolved
09 September 2017
Hi Experts
Can you give some examples for RCM Provision Entries
regards
Can you give some examples for RCM Provision Entries
regards
CA Rashmi Gandhi
(Expert)
09 September 2017
Expense A/c
Input CGST A/c
Input SGST A/c
To Party
To Output CGST A/c
To Output SGST A/c
Output CGST A/c
Output SGST A/c
To Bank
Output
20 July 2025
Example: RCM on Legal Services
Suppose:
You (ABC Ltd.) received legal services from a lawyer (unregistered).
Invoice Value = ₹10,000
GST Rate = 18% (CGST 9% + SGST 9%)
You need to pay GST of ₹1,800 under RCM and can claim ITC (if eligible).
📘 Journal Entries in Books of ABC Ltd.
1. For Recording Expense (Legal Fees)
Legal Expenses A/c Dr. ₹10,000
To Vendor (Advocate) A/c ₹10,000
(Being legal services received)
2. For RCM Tax Liability
CGST Payable under RCM A/c Dr. ₹900
SGST Payable under RCM A/c Dr. ₹900
To GST Payable under RCM A/c ₹1,800
(Being RCM tax liability booked)
3. For Payment of RCM Tax to Government
GST Payable under RCM A/c Dr. ₹1,800
To Bank A/c ₹1,800
(Being RCM tax paid to government)
4. For Claiming ITC (if eligible)
Input CGST A/c Dr. ₹900
Input SGST A/c Dr. ₹900
To CGST Payable under RCM A/c ₹900
To SGST Payable under RCM A/c ₹900
(Being input tax credit claimed under RCM)
Suppose:
You (ABC Ltd.) received legal services from a lawyer (unregistered).
Invoice Value = ₹10,000
GST Rate = 18% (CGST 9% + SGST 9%)
You need to pay GST of ₹1,800 under RCM and can claim ITC (if eligible).
📘 Journal Entries in Books of ABC Ltd.
1. For Recording Expense (Legal Fees)
Legal Expenses A/c Dr. ₹10,000
To Vendor (Advocate) A/c ₹10,000
(Being legal services received)
2. For RCM Tax Liability
CGST Payable under RCM A/c Dr. ₹900
SGST Payable under RCM A/c Dr. ₹900
To GST Payable under RCM A/c ₹1,800
(Being RCM tax liability booked)
3. For Payment of RCM Tax to Government
GST Payable under RCM A/c Dr. ₹1,800
To Bank A/c ₹1,800
(Being RCM tax paid to government)
4. For Claiming ITC (if eligible)
Input CGST A/c Dr. ₹900
Input SGST A/c Dr. ₹900
To CGST Payable under RCM A/c ₹900
To SGST Payable under RCM A/c ₹900
(Being input tax credit claimed under RCM)
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