GST RCM on contractual consultant who works as like employee

There is no GST RCM applicable on contractual consultants. If the individuals are functioning like employees, their services fall under Schedule III, and no GST is payable at all. If they are genuine independent consultants, GST applies under forward charge @ 18%, not RCM. Merely calling someone a consultant in an agreement does not decide GST—the real nature of the relationship does.

The key test is whether the engagement constitutes employment or a supply of services. If the consultant works under the company direction and control, uses company resources, cannot substitute another person for the work, and is economically dependent on only this engagement, then Schedule III Entry 1 excludes it from GST entirely (no RCM). If the engagement is genuinely contractual (own tools, controls schedule, can take other clients), then it is a supply of services and RCM at 18% applies under Notification 13/2017 if the recipient is a body corporate. Getting the characterisation wrong exposes the company to interest and penalty on the short-paid tax. This [GST reverse charge mechanism guide](https://taxgarden.in/blog/reverse-charge-mechanism-rcm-gst-india-guide) covers the Schedule III employment exclusion alongside the practical RCM applicability checklist for individual contractors.