Accounts Payable | RCM Bills (Reverse Charge)
RCM tagged at capture. Self-invoice issued. GSTR-3B populated correctly.
Reverse-charge categories (legal, GTA, security, advocate, residential rent, import of services) auto-flagged at bill capture. Self-invoice generated with IRN where applicable. Section 9(3) and 9(4) handled separately. GSTR-3B Table 3.1(d) populated. ITC claimed in the next month per Section 16.
What the system does
Capability, input, output.
| Capability | Input | Output |
|---|---|---|
| RCM auto-flag | Bill category + Section 9(3) / 9(4) rules | RCM tag at capture |
| Self-invoice generation | Bill + RCM tag + IRN threshold | Self-invoice with IRN where applicable |
| 3B Table 3.1(d) population | RCM register for the period | Auto-drafted Table 3.1(d) |
| ITC next-month claim | RCM payment + Section 16(2)(c) gate | ITC claim drafted for next month |
| Foreign-vendor RCM | Import of services + Section 9(3) | Separate self-invoice with FX rate |
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RCM auto-flag
- Input
- Bill category + Section 9(3) / 9(4) rules
- Output
- RCM tag at capture
-
Self-invoice generation
- Input
- Bill + RCM tag + IRN threshold
- Output
- Self-invoice with IRN where applicable
-
3B Table 3.1(d) population
- Input
- RCM register for the period
- Output
- Auto-drafted Table 3.1(d)
-
ITC next-month claim
- Input
- RCM payment + Section 16(2)(c) gate
- Output
- ITC claim drafted for next month
-
Foreign-vendor RCM
- Input
- Import of services + Section 9(3)
- Output
- Separate self-invoice with FX rate
Compliance + integrations
Reverse charge done at the bill, recorded the way the law expects.
RCM is a frequent audit finding. Most teams catch it at FY-end through manual review of legal, advocate and GTA invoices. Catching it at capture means the books, the 3B and the ITC claim all align.
Regulations we work within
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Section 9(3), CGST Act
Notified categories tagged at capture.
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Section 9(4), CGST Act
Registered-buyer / unregistered-seller flagged where applicable.
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Rule 36(1)(b)
Self-invoice raised under RCM with IRN where threshold applies.
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Section 16(2)(c)
ITC on RCM claimed only after tax is paid; gate enforced.
Connects to
- GSTN (e-Invoice) IRN for self-invoices
- Tally Prime Bidirectional sync of self-invoice
- Zoho Books Native connector
RCM Bills (Reverse Charge) FAQ
What buyers ask.
Which services attract RCM under Section 9(3)?
The notified list includes legal services from advocates, GTA (Goods Transport Agency) for road transport, security services from non-corporate suppliers, sponsorship services, services from a director, services from RBI to a non-banking entity, advocate to business entity, residential rent for office, and certain import of services. The system auto-flags these by GL and vendor category.
Foreign vendor invoice. How is RCM applied?
Import of services attracts RCM under Section 9(3). The system tags the bill, generates a self-invoice in INR using the RBI reference rate, applies IGST at 18% (default) or the relevant rate, and posts the liability to GSTR-3B Table 3.1(d). ITC is claimed in the next month per Section 16(2)(c).
When is the ITC on RCM available?
ITC is available in the month the tax is paid (cash basis), per Section 16(2)(c). The system gates the ITC claim to the next month after the RCM payment is recorded in 3B. This avoids the audit finding of premature ITC.
Residential rent paid for office. Is that RCM?
Yes. Residential rent paid for non-residential use (e.g., a flat used as an office) attracts RCM. The system flags this at capture if the GL is rent and the property type is residential. The CFO can override with reason.
More in Accounts Payable
Related features
Forward your last advocate bill. See the self-invoice.
Connect one entity, free. The next legal, GTA or import-of-services bill triggers the RCM workflow. The self-invoice and the 3B Table 3.1(d) auto-populate.