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Accounts Payable | RCM Bills (Reverse Charge)
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.
How it works
Service categories under Section 9(3) (legal, GTA, security, advocate, etc.) are auto-flagged at capture. Section 9(4) (registered buyer, unregistered seller) flagged where applicable. Foreign-vendor RCM (import of services) tagged separately.
Self-invoice raised against the vendor with IRN where the threshold applies. Tax computed at the right rate; cess applied where relevant.
RCM tax liability auto-populated to GSTR-3B Table 3.1(d). The ITC on the same bill is claimed in the next month per Section 16(2)(c) and surfaced for review.
Self-invoice, IRN, tax computation and ITC claim all captured in the RCM register. Hash-verified for GST audit.
What the system does
| 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 |
RCM auto-flag
Self-invoice generation
3B Table 3.1(d) population
ITC next-month claim
Foreign-vendor RCM
Compliance + integrations
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
Section 9(3), CGST Act
Notified categories tagged at capture.
Section 9(4), CGST Act
Registered-buyer / unregistered-seller flagged where applicable.
Rule 36(1)(b)
Self-invoice raised under RCM with IRN where threshold applies.
Section 16(2)(c)
ITC on RCM claimed only after tax is paid; gate enforced.
Connects to
RCM Bills (Reverse Charge) FAQ
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.
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).
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.
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
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.
