Where to show rcm on rent in gst return
This query is : Resolved
SHAHABUDDIN
(Querist)
03 September 2017
Where to Show RCM on Rent paid in GST Return?
Guest
Guest
(Expert)
03 September 2017
Please see this video to know where to show RCM supplies in GST return
https://youtu.be/9Myx8rN2tt4
03 August 2025
In **GST Returns**, **Reverse Charge Mechanism (RCM) on Rent Paid** (typically to an unregistered person or in certain notified cases like renting from an individual to a registered person) must be reported properly in **GSTR-3B** and **GSTR-1**.
---
### ✅ **Where to show RCM on Rent in GSTR-3B?**
| **Section** | **What to enter** |
| ------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------- |
| **3.1(d)** – Inward supplies liable to reverse charge | Show the **taxable value of rent** paid under RCM. GST on this value will be auto-calculated. |
| **4(A)(3)** – Inward supplies liable to reverse charge (Input Tax Credit) | Claim **ITC** on the RCM paid, **only if** rent is used for business purposes. |
📌 *You must pay the tax in cash first under RCM and then claim ITC in the same or subsequent month, subject to eligibility.*
---
### ✅ **Where to show in GSTR-1?**
🔸 **Do not show RCM transactions in GSTR-1**, because this return is for **outward supplies** (sales), and rent paid under RCM is an **inward supply** (purchase).
---
### 🧾 Example:
You paid ₹10,000 rent in August 2025 to an unregistered individual, and RCM is applicable at 18%.
* **GSTR-3B > 3.1(d)** → ₹10,000
* **Tax payable** = ₹1,800 (to be paid in cash)
* **GSTR-3B > 4(A)(3)** → Claim ITC of ₹1,800 (if eligible)
---
Let me know your use case (e.g. residential or commercial rent) if you want to confirm whether RCM applies in your case.
---
### ✅ **Where to show RCM on Rent in GSTR-3B?**
| **Section** | **What to enter** |
| ------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------- |
| **3.1(d)** – Inward supplies liable to reverse charge | Show the **taxable value of rent** paid under RCM. GST on this value will be auto-calculated. |
| **4(A)(3)** – Inward supplies liable to reverse charge (Input Tax Credit) | Claim **ITC** on the RCM paid, **only if** rent is used for business purposes. |
📌 *You must pay the tax in cash first under RCM and then claim ITC in the same or subsequent month, subject to eligibility.*
---
### ✅ **Where to show in GSTR-1?**
🔸 **Do not show RCM transactions in GSTR-1**, because this return is for **outward supplies** (sales), and rent paid under RCM is an **inward supply** (purchase).
---
### 🧾 Example:
You paid ₹10,000 rent in August 2025 to an unregistered individual, and RCM is applicable at 18%.
* **GSTR-3B > 3.1(d)** → ₹10,000
* **Tax payable** = ₹1,800 (to be paid in cash)
* **GSTR-3B > 4(A)(3)** → Claim ITC of ₹1,800 (if eligible)
---
Let me know your use case (e.g. residential or commercial rent) if you want to confirm whether RCM applies in your case.
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