Where to show rcm on rent in gst return

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SHAHABUDDIN

SHAHABUDDIN (Querist)
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03 September 2017 Where to Show RCM on Rent paid in GST Return?

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Guest (Expert)

03 September 2017 Please see this video to know where to show RCM supplies in GST return https://youtu.be/9Myx8rN2tt4

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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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**.

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### ✅ **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.*

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### ✅ **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).

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### 🧾 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)

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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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