RCM gst liability and return query

This query is : Resolved

deepak (Querist)
Follow

24 July 2025 Our client is providing security services, he is in RCM, so we create RCM invoice. If client have a security services provider client whose turnover is Rs 3 crore, query is that
A) can client opt for QRMP scheme and file IFF monthly filing and GSTR 3B quarterly?
B) IFF monthly filing of RCM invoice, in such situation can our client liable to pay gst on RCm invoices OR Service Receiver??

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
Follow

12 August 2025 A) Can the client opt for QRMP scheme and file IFF monthly and GSTR-3B quarterly?
Yes, if the client’s aggregate turnover is up to ₹5 crore (which includes your client with ₹3 crore turnover), they are eligible to opt for QRMP scheme.
Under QRMP:
IFF (Invoice Furnishing Facility) must be filed monthly.
GSTR-3B can be filed quarterly.
This is applicable even if the supplies are under RCM.
B) Who is liable to pay GST on RCM invoices?
Under Reverse Charge Mechanism (RCM), the recipient of the service (service receiver) is liable to pay the GST, not the service provider.
So, in your client’s case:
The client issues RCM invoice, but the GST liability to pay and deposit rests with the service receiver (the client’s customer).
Your client must mention RCM on the invoice and report the invoice details in GSTR-1.
The service receiver must pay GST on RCM invoices in their returns.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now