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
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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