Taxable Service under RCM

The error message "When taxable value is declared, Tax amounts cannot be zero" in GSTR-3B typically occurs because the GST portal's validation logic requires a corresponding tax amount if a taxable value is entered in the table for Inward Supplies liable to Reverse Charge (Table 3.1(d)).

Here is the standard approach to resolving this:

1. Identify the Correct Table

Ensure you are entering the transaction in the correct section of GSTR-3B:

• Table 3.1(d): This is specifically for "Inward supplies liable to reverse charge."

• Do not enter the transaction in tables meant for outward supplies (like Table 3.1(a)), as those tables expect you to be the one collecting and paying the tax directly.

2. Check Input Fields

The portal does not calculate the tax automatically in GSTR-3B. You must manually enter:

• Taxable Value: The amount on which the reverse charge is applicable.

• Integrated Tax / Central Tax / State Tax: You must manually calculate the appropriate tax (IGST, CGST, or SGST) based on the nature of the transaction (Inter-state or Intra-state) and input the figure in the respective tax columns.

3. Ensure Compliance with GSTR-1

Since you mentioned filing GSTR-1, note that Reverse Charge transactions are generally not reported in GSTR-1 by the service provider unless it is a specific case where the provider is liable to pay tax. If the recipient is the one liable under RCM, the provider typically invoices it as an RCM supply, and the recipient reports it in their own GSTR-3B.

Summary

To resolve the error, ensure you are reporting the transaction in Table 3.1(d) of your GSTR-3B and manually populate the tax amount columns (IGST/CGST/SGST) corresponding to the taxable value you have entered. The portal will not permit a zero-tax entry if a taxable value exists in that specific table.