{"id":27322,"date":"2024-08-23T23:32:56","date_gmt":"2024-08-23T18:02:56","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=27322"},"modified":"2025-12-30T18:57:34","modified_gmt":"2025-12-30T13:27:34","slug":"rcm-liability-itc-statement","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/rcm-liability-itc-statement\/","title":{"rendered":"New GST Ledger from Aug 2024| RCM Liability &#038; ITC Statement"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d2e70675aaf\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d2e70675aaf\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/rcm-liability-itc-statement\/#New_GST_Ledger_from_Aug_2024_RCM_Liability_and_ITC_Statement\" title=\"New GST Ledger from Aug 2024| RCM Liability and ITC Statement\">New GST Ledger from Aug 2024| RCM Liability and ITC Statement<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/rcm-liability-itc-statement\/#Reverse_Charge_Mechanism_Vs_Forward_Charge_Mechanism\" title=\"Reverse Charge Mechanism\u00a0 Vs Forward Charge Mechanism\u00a0\">Reverse Charge Mechanism\u00a0 Vs Forward Charge Mechanism\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/rcm-liability-itc-statement\/#Supplies_Notified_under_Section_93_of_the_CGST_Act\" title=\"Supplies Notified under Section 9(3) of the CGST Act\">Supplies Notified under Section 9(3) of the CGST Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/rcm-liability-itc-statement\/#Supplies_from_Unregistered_Suppliers\" title=\"Supplies from Unregistered Suppliers\">Supplies from Unregistered Suppliers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/rcm-liability-itc-statement\/#Payment_of_GST_under_RCM\" title=\"Payment of GST under RCM : \">Payment of GST under RCM : <\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/rcm-liability-itc-statement\/#RCM_Liability_and_ITC_Statement\" title=\"RCM Liability and ITC Statement\">RCM Liability and ITC Statement<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/rcm-liability-itc-statement\/#Excess_RCM_Liabilities_Paid_but_ITC_Not_Availed\" title=\"Excess RCM Liabilities Paid but ITC Not Availed:\">Excess RCM Liabilities Paid but ITC Not Availed:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/rcm-liability-itc-statement\/#Excess_RCM_ITC_Availed_but_Liability_Not_Paid\" title=\"Excess RCM ITC Availed but Liability Not Paid:\">Excess RCM ITC Availed but Liability Not Paid:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/rcm-liability-itc-statement\/#Reclaiming_Reversed_RCM_ITC\" title=\"Reclaiming Reversed RCM ITC:\">Reclaiming Reversed RCM ITC:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-26938\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/06\/GST-.png\" alt=\"What is Electronic Cash Ledger ?\" width=\"1015\" height=\"660\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/06\/GST-.png 686w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/06\/GST--300x195.png 300w\" sizes=\"(max-width: 1015px) 100vw, 1015px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"New_GST_Ledger_from_Aug_2024_RCM_Liability_and_ITC_Statement\"><\/span><span style=\"color: #000080;\"><strong>New GST Ledger from Aug 2024| RCM Liability and ITC Statement<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To aid GST Taxpayers in accurately reporting Reverse Charge Mechanism transactions, the GST Portal has introduced a new statement called the &#8220;RCM Liability\/ITC Statement.&#8221; This statement is designed to improve accuracy and transparency in handling Reverse Charge Mechanism transactions by capturing the following:<\/p>\n<ul>\n<li>RCM liability reported in Table 3.1(d) of GSTR-3B for a specific return period.<\/li>\n<li>The corresponding Input Tax Credit (ITC) claimed in Table 4A(2) and Table 4A(3) of GSTR-3B for the same period.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Reverse_Charge_Mechanism_Vs_Forward_Charge_Mechanism\"><\/span><span style=\"color: #000080;\"><strong>Reverse Charge Mechanism\u00a0 Vs Forward Charge Mechanism\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-27479\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/RCM.jpg\" alt=\"Reverse Charge Mechanism\u00a0 Vs Forward Charge Mechanism\u00a0\" width=\"1080\" height=\"958\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/RCM.jpg 1080w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/RCM-300x266.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/RCM-1024x908.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/RCM-768x681.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/RCM-800x710.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\n<p>Reverse Charge Mechanism and Forward Charge Mechanism are two ways of tax collection under the Goods and Services Tax (GST) system.<\/p>\n<p><strong>Reverse Charge Mechanism :<\/strong><\/p>\n<p>Under the Goods and Services Tax law, the Reverse Charge Mechanism shifts the responsibility of paying Goods and Services Tax from the supplier to the recipient of goods or services.\u00a0Normally, GST is paid by the supplier. However, in specified cases, the recipient is required to pay GST directly to the Govt.<\/p>\n<p>In RCM, the recipient of goods or services is responsible for paying the GST directly to the government instead of the supplier. This mechanism is usually applied to certain goods and services as notified by the government, or when a supplier is an unregistered person supplying to a registered recipient. Example: Services provided by a goods transport agency to a business entity, where the business is liable to pay tax under RCM. RCM is mainly applicable in the following situations:<\/p>\n<h3 data-start=\"673\" data-end=\"737\"><span class=\"ez-toc-section\" id=\"Supplies_Notified_under_Section_93_of_the_CGST_Act\"><\/span><span style=\"color: #000080;\">Supplies Notified under <strong data-start=\"705\" data-end=\"737\">Section 9(3) of the CGST Act<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"738\" data-end=\"842\">The Govt has notified certain goods and services where GST must be paid by the recipient, such as Legal services by advocates, Goods Transport Agency (GTA) services, sponsorship services, director\u2019s remuneration (in specified cases), and security services (subject to conditions).<\/p>\n<h3 data-start=\"1028\" data-end=\"1076\"><span class=\"ez-toc-section\" id=\"Supplies_from_Unregistered_Suppliers\"><\/span><span style=\"color: #000080;\">Supplies from <strong data-start=\"1050\" data-end=\"1076\">Unregistered Suppliers<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1077\" data-end=\"1278\">RCM applies when a registered person receives notified supplies from an unregistered supplier, as specifically prescribed by the Government (general RCM on all URP supplies has been withdrawn).<\/p>\n<h3 data-start=\"1285\" data-end=\"1315\"><span class=\"ez-toc-section\" id=\"Payment_of_GST_under_RCM\"><\/span><span style=\"color: #000080;\">Payment of GST under RCM : <\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1285\" data-end=\"1315\"><span style=\"font-size: 16px;\">GST under RCM <\/span>must be paid in cash only; Input Tax Credit (ITC) cannot be used<span style=\"font-size: 16px;\"> for payment at the time of discharge. After payment, the recipient <\/span>can claim ITC<span style=\"font-size: 16px;\">, subject to\u00a0<\/span><span style=\"font-size: 16px;\">Eligibility under Section 16, <\/span><span style=\"font-size: 16px;\">Goods\/services used for business purposes. <\/span><span style=\"font-size: 16px;\">Proper documentation and reporting<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"RCM_Liability_and_ITC_Statement\"><\/span><span style=\"color: #000080;\"><strong>RCM Liability and ITC Statement<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This new statement will ensure that taxpayers can manage and reconcile their RCM liabilities and Input Tax Credit claims more effectively,\u00a0 The statement you&#8217;re referring to indicates that from August 2024 onwards, specific requirements related to Reverse Charge Mechanism Liability and Input Tax Credit will be applicable.<\/p>\n<p>For monthly GST filers, this will begin with the tax period of August 2024. For quarterly GST filers, it will apply starting from the July-September 2024 quarter.<\/p>\n<p>To report the Opening Balance in the RCM ITC Statement, follow these steps: To access the RCM Liability\/ITC Statement, you can navigate to :<\/p>\n<p style=\"padding-left: 40px;\"><span style=\"color: #000080;\"><strong>Login &gt;&gt; Report RCM ITC Opening Balance or Services &gt;&gt; Ledger &gt;&gt; RCM Liability\/ITC Statement &gt;&gt; Report RCM ITC Opening Balance<\/strong><\/span><\/p>\n<p>This navigation path will allow users to view and manage their Reverse Charge Mechanism liabilities and Input Tax Credit claims accordingly. GST Taxpayers should follow these guidelines:<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Excess_RCM_Liabilities_Paid_but_ITC_Not_Availed\"><\/span><span style=\"color: #000080;\"><strong>Excess RCM Liabilities Paid but ITC Not Availed<\/strong>:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">If a taxpayer has paid excess RCM liabilities by declaring the amount in Table 3.1(d) of GSTR-3B but has not availed the corresponding ITC in Table 4(A)(2) or 4(A)(3) of GSTR-3B, they should report the positive value of the excess paid liability as RCM ITC as the opening balance in the RCM Statement.<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Excess_RCM_ITC_Availed_but_Liability_Not_Paid\"><\/span><span style=\"color: #000080;\"><strong>Excess RCM ITC Availed but Liability Not Paid<\/strong>:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">If a taxpayer has availed excess RCM ITC in Table 4(A)(2) or 4(A)(3) of GSTR-3B but has not paid the corresponding liability in Table 3.1(d) of GSTR-3B, they should report the negative value of the excess claimed Input Tax Credit as RCM as the opening balance in the RCM Statement.<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Reclaiming_Reversed_RCM_ITC\"><\/span><span style=\"color: #000080;\"><strong>Reclaiming Reversed RCM ITC<\/strong>:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>If a GST taxpayer needs to reclaim RCM ITC that was reversed in earlier tax periods through Table 4(B)(2) of GSTR-3B, and if eligible, they should reclaim such RCM ITC in Table 4A(5) of GSTR-3B.<\/li>\n<li>It is important to note that such reclaimed RCM ITC should not be reported in Table 4(A)(2) or 4(A)(3) of GSTR-3B, and this reclaimed RCM ITC reversal does not need to be reported as an RCM ITC opening balance.<\/li>\n<\/ul>\n<\/li>\n<li>RCM liability must be reported in GSTR-3B,\u00a0Self-invoice to be issued where supplier is unregistered,\u00a0Payment to supplier should be made within 180 days (where applicable)<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-27323\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/Introduction-of-RCM-LiabilityITC-Statement.jpg\" alt=\"New GST Ledger from Aug 2024| RCM Liability and ITC Statement\" width=\"1030\" height=\"1475\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/Introduction-of-RCM-LiabilityITC-Statement.jpg 894w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/Introduction-of-RCM-LiabilityITC-Statement-210x300.jpg 210w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/Introduction-of-RCM-LiabilityITC-Statement-715x1024.jpg 715w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/Introduction-of-RCM-LiabilityITC-Statement-768x1100.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/Introduction-of-RCM-LiabilityITC-Statement-800x1145.jpg 800w\" sizes=\"(max-width: 1030px) 100vw, 1030px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New GST Ledger from Aug 2024| RCM Liability and ITC Statement To aid GST Taxpayers in accurately reporting Reverse Charge Mechanism transactions, the GST Portal has introduced a new statement called the &#8220;RCM Liability\/ITC Statement.&#8221; This statement is designed to improve accuracy and transparency in handling Reverse Charge Mechanism transactions by capturing the following: RCM &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10020],"tags":[10402],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27322"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=27322"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27322\/revisions"}],"predecessor-version":[{"id":27478,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27322\/revisions\/27478"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=27322"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=27322"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=27322"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}