RCM ON INWARD SUPPLIES paid in March 25

Your client paid Reverse Charge Mechanism (RCM) on 1st March 2025 for purchases made from an unregistered supplier. GSTR-3B Filing for February 2025:

 1. *Purchases and RCM*: Since the RCM payment was made in March 2025, it cannot be claimed in the February 2025 GSTR-3B return.

2. *Nil Return*: However, if there are no other transactions or liabilities for February 2025, your client can file a NIL return for GSTR-3B. Important Considerations:

 1. *Cash Ledger Balance*: The Cash Ledger will show the RCM balance for March 2025, which is correct.

2. *Claiming RCM in March*: Your client can claim the RCM paid in March 2025 in the GSTR-3B return for March 2025. 

3. *Purchases in March*: The purchases made from the unregistered supplier should be reported in the GSTR-3B return for March 2025.

 To summarize: - File a NIL return for GSTR-3B for February 2025, if there are no other transactions or liabilities. -

Claim the RCM paid in March 2025 in the GSTR-3B return for March 2025. - 

Report the purchases made from the unregistered supplier in the GSTR-3B return for March 2025. 

When we raised liability in 3B of Feb 25 in table 3.1 (d )  Inward supplies (liable to reverse charge) and climed RCM in table 4 (3) Inward supplies liable to reverse charge (other than 1 & 2 above), the table  4  beomes red  signifying excess claim . any remedy or can ignore it

Report the inward supply liable to reverse charge in the February 2025 GSTR-3B, since the goods were purchased in February. Disclose the taxable value and tax under Table 3.1(d) and pay the liability in cash. If the tax was paid on 1 March, it may be used to discharge the February liability when filing, provided the cash-ledger balance is available; the payment date alone does not shift the purchase to March. Claim eligible ITC in Table 4(A)(3), subject to the usual conditions, in the period the RCM tax is paid.

A nil GSTR-3B would not be appropriate if the February return has this RCM liability to report. Check the actual ledger and return period before filing, as a payment posted to a different period may affect how it can be utilised on the portal.

This treatment should be reflected consistently in the purchase records, RCM working and GSTR-3B reconciliation. Manual practice work across these records is difficult, and automation reduces repetitive work while professional judgment remains in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For a simpler compliance workflow, connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1