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Clarification Regarding RCM Liability in GSTR-4 for FY 2024-25

RCM 216 views 1 replies

MIDHUN E

ACCOUNTANT

61 Points Joined June 2010

Dear Sir/Madam,

I had by mistakely not declared the Reverse Charge Mechanism (RCM) liability in my quarterly return under the Composition Scheme for FY 2024-25.

Could you please guide me on which column or section of GSTR-4 I can use to report the RCM liability, including applicable interest and penalty? I need to pay IGST/CGST & SGST amounts related to RCM invoices.

Kindly help me with the procedure to rectify this mistake.

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9047 Points Joined December 2011

As a composition scheme taxpayer, you're required to pay tax under the reverse charge mechanism (RCM) and report it in your GSTR-4 return.

Since you missed reporting the RCM liability in your quarterly return, you'll need to rectify the mistake.

*Reporting RCM Liability in GSTR-4:* To report RCM liability, including applicable interest and penalty, follow these steps:

1. *File a Fresh GSTR-4*: You can file a fresh GSTR-4 for the relevant quarter, including the RCM liability, interest, and penalty.

2. *Table 6 of GSTR-4*: Report the RCM liability in Table 6 of GSTR-4, which pertains to "Tax payable and paid".

3. *Interest and Penalty*: Calculate the interest and penalty applicable on the RCM liability and pay it along with the tax amount.

*Procedure to Rectify the Mistake:*

1. *Calculate the RCM Liability*: Determine the RCM liability, including interest and penalty, for the missed period.

2. *Pay the Tax, Interest, and Penalty*: Pay the tax, interest, and penalty through the government's online portal.

3. *File a Fresh GSTR-4*: File a fresh GSTR-4 return, including the RCM liability, interest, and penalty.

4. *Update the Records*: Ensure you update your records to reflect the correct RCM liability, interest, and penalty payment. *Important Points to Consider:* -

*Interest and Penalty Calculation*: Calculate the interest and penalty accurately, as per the GST laws and regulations. - *Payment of Tax, Interest, and Penalty*:

Ensure you pay the tax, interest, and penalty in a timely manner to avoid further penalties. - *Consult a Tax Professional*:

By following these steps, you can rectify the mistake and report the RCM liability, including applicable interest and penalty, in your GSTR-4 return.

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