YEAR END GST ENTRY FOR RCM NOT PAID RS 5000 I.E OUSTANDING EXPENSES OR PAYABLE

• At Year-End (31st March): Debit the relevant Expense Account and an temporary asset account (GST RCM Unavailed ITC); Credit Vendor/Outstanding Expenses and RCM Tax Liability Payable (₹5,000).

• Key Rule: Do not credit Electronic Credit Ledger directly at year-end; RCM ITC can only be claimed after cash payment in GSTR-3B.

• Subsequent Period: Debit RCM Liability Payable upon cash payment, and shift Unavailed ITC to Available Input GST.

The existing reply is correct on the ITC point. Here is the full accounting treatment:

YEAR-END ENTRY (March 31, for unpaid RCM liability):
- Dr. [Expense head, e.g. Professional Fees or Freight] Rs 5,000
- Cr. GST RCM Payable (Liability) Rs 5,000

Do NOT debit any GST Input account at year-end. RCM ITC is available only in the tax period in which you actually make the cash payment. Provisioning ITC before payment is incorrect and will cause a mismatch when you reconcile your books with GSTR-3B.

WHEN YOU PAY IN THE NEXT YEAR:
- Dr. GST RCM Payable Rs 5,000
- Cr. Bank Rs 5,000

Then claim the ITC in the GSTR-3B of the month in which payment was made. The ITC entry in books:
- Dr. GST Input Tax Credit (RCM) Rs 5,000
- Cr. GST RCM ITC Receivable Rs 5,000 (or directly offset against output tax in GSTR-3B)

IMPORTANT TIMELINE RULE: For AY 2026-27, RCM ITC must be claimed in GSTR-3B filed for the period before November 30, 2026, or before filing the annual return (GSTR-9) for FY 2025-26, whichever is earlier. Late claiming results in forfeiture.

For a detailed breakdown of RCM applicability and the ITC claim process for different RCM categories, this [guide on GST on director remuneration RCM and ITC](https://taxgarden.in/blog/gst-on-director-remuneration-rcm-itc-india-2026) covers the payment and ITC timing rules in detail.