What is GSTR-3B and when is it due?

GSTR-3B is a monthly self-declared summary GST return. For regular taxpayers, it is due by the 20th of the following month. Late filing attracts ₹50/day late fee (₹25 CGST + ₹25 SGST), capped at ₹5,000.

How do I reply to a DRC-01 GST notice?

DRC-01 is a show-cause notice for tax demand. Log in to GST portal, go to Services > User Services > View Additional Notices, select the notice and file a reply within 30 days — either agreeing and paying, or disputing with supporting documents.

What is the late fee for filing GSTR-1 late?

Late fee for GSTR-1 is ₹50/day (₹25 CGST + ₹25 SGST). For nil returns it is ₹20/day. Maximum cap is ₹10,000 per return. GSTR-1 is due by the 11th of each month for monthly filers.

Can I claim ITC on hotel and restaurant bills?

ITC on restaurant food and beverages is blocked under Section 17(5) CGST Act — not claimable. However, ITC on hotel accommodation is allowed if used for business purposes and the hotel provides a GST invoice with your GSTIN.

What is the GST registration threshold in India?

GST registration is mandatory if annual aggregate turnover exceeds ₹40 lakhs for goods (₹20 lakhs for special category states) or ₹20 lakhs for services (₹10 lakhs for special category states). E-commerce sellers must register regardless of turnover.

RCM Under GST: Complete List of Services, Calculation, and Compliance 2025

sai krishna
Jun 7
2 min read

Reverse Charge Mechanism (RCM) means the recipient of goods or services — not the supplier — is liable to pay GST directly to the government. This is a critical compliance area that frequently comes up in GST audits.

Which Services Attract RCM Under Section 9(3)?

The following services are notified under Section 9(3) of CGST Act (Notification 13/2017-CT(R)):

1. Goods Transport Agency (GTA) services — when recipient is a registered person 2. Legal services by an advocate — when recipient is a business entity 3. Services by a director to a company 4. Insurance agent services 5. Recovery agent services 6. Author/composer services to a publisher 7. Renting of motor vehicles (specified cases) 8. Services of security personnel by non-body corporate to a body corporate 9. Services by government or local authority (excluding certain specified services)

Important: GTA services are the most frequently missed RCM liability in audits.

GTA RCM — Detailed Compliance

If you pay freight to a transport company (GTA), and the GTA has not opted for forward charge (i.e., they have not issued a GST invoice with tax), you must pay 5% GST on the freight amount under RCM.

How to Pay RCM

1. Calculate RCM liability for each month 2. Pay only through Electronic Cash Ledger (ECL) — no ITC can be used to pay RCM 3. File in GSTR-3B Table 3.1(d) — Inward supplies attracting RCM 4. Claim ITC of RCM paid in Table 4(A)(3) of GSTR-3B in the same or subsequent month

Common RCM Audit Findings

- GTA payments not identified and RCM not discharged - Advocate fees paid without discharging RCM - Security service payments to non-body-corporate firms without RCM - Rent paid to unregistered landlord — wrongly classified as non-taxable

RCM Under Section 9(4) — Supplies from Unregistered Dealers

Under Section 9(4), if a GST-registered person purchases goods or services from an unregistered dealer, RCM applies. However, this is currently suspended for most supplies except specific notified categories.

Interest on RCM Default

If RCM is not paid on time, interest under Section 50 at 18% per annum applies from the due date of payment to the actual date of payment. This is a key demand item in GST audits.

Disclaimer: Consult your CA for case-specific advice. RCM notifications are amended periodically.