🔄 RCM CalculatorGST Tools
About RCM Calculator
This RCM (Reverse Charge Mechanism) GST Calculator is a free online tool designed to help businesses, freelancers, and GST-registered taxpayers instantly calculate their Reverse Charge Mechanism tax liability. Under RCM, the responsibility of paying GST shifts from the supplier to the recipient (buyer), who must pay the tax directly to the government. This tool accurately computes that exact liability. Simply enter the transaction value (tax-exclusive), select the applicable GST rate (5%, 12%, 18%, 28%, or a custom rate), and choose the states of both the supplier and the recipient. The tool automatically detects whether the transaction is intra-state or inter-state and provides a clear, itemized breakdown of CGST + SGST or IGST accordingly. It also prominently reminds users that RCM tax must be paid via the Electronic Cash Ledger only; Input Tax Credit (ITC) cannot be used to discharge this specific liability. This calculator is highly useful for anyone availing services subject to RCM, such as Goods Transport Agency (GTA) services, legal services by advocates, import of services, security services, sponsorship services, e-commerce operator services, or services provided by the government/local authorities to businesses. You can copy the calculated summary with a single click to share with your accountant or for your internal records. The tool is 100% free, requires no sign-up, and ensures complete privacy as all calculations happen locally in your browser. Essential compliance tips are also included to help you report correctly in GSTR-3B and understand ITC claim conditions.
How to use RCM Calculator
- Enter your taxable transaction value (in ₹).
- Select the applicable GST rate (5%, 12%, 18%, 28%, or Custom).
- Choose the supplier's state and your (recipient's) state from the dropdowns.
- Instantly view your total RCM liability and the CGST/SGST/IGST breakdown.
- Click "Copy Summary" to save the results or share them with your accountant.
Frequently asked questions
What is an RCM calculator?
It is a tool that calculates your GST liability under the Reverse Charge Mechanism when the recipient is responsible for paying the tax.
Is this tool free to use?
Yes, it is completely free and requires no sign-up or registration.
Who pays the tax under RCM?
The recipient (buyer) pays the GST directly to the government, not the supplier.
Can I pay RCM tax using ITC?
No, RCM tax must always be paid using the Electronic Cash Ledger.
Can I claim ITC on the RCM tax paid?
Yes, you can claim ITC on RCM paid under Section 16, provided the goods or services are used for business purposes.
What is the difference between intra-state and inter-state RCM?
Same state transactions attract CGST + SGST, while different state transactions attract IGST. The tool detects this automatically.
Which services are subject to RCM?
GTA services, legal services, import of services, security services, sponsorship, e-commerce operator services, and certain government services.
Where do I report RCM in GSTR-3B?
RCM liability must be reported in Table 3.1(d) of the GSTR-3B return.
Is GST registration mandatory for RCM?
Yes, GST registration is compulsory for receiving RCM supplies, regardless of whether your turnover is below the standard threshold.
What must be mentioned on an RCM invoice?
The invoice must clearly state: "Tax payable on reverse charge basis by recipient".