GST Reverse Charge Mechanism Calculator

Reverse Charge Mechanism (RCM) is a special GST rule where the buyer, not the seller, pays the GST to the government. This unusual provision applies to specific high-risk transactions to ensure tax compliance and prevent fraud. Situations triggering RCM include: importing services from overseas (like SaaS, consulting), purchasing goods from unregistered suppliers, using specified services (works contracts, transportation, construction), and buying from e-commerce non-residents. For businesses receiving such supplies, understanding RCM is critical because the accounting and ITC claiming differs from normal GST. You pay GST to the government even though the invoice from the supplier shows 0% GST. This requires careful tracking in accounting records and proper GSTR-3B reporting. Many businesses miss RCM opportunities or misreport them, leading to compliance issues and lost ITC claims. This calculator helps compute the exact GST liability under RCM for any invoice amount and rate.