Authorised IT Filing Platform by Indian Income Tax Department
4.8 ★★★★★ Excellence since 2016
4.8 ★★★★★ Excellence since 2016Have RSUs, ESOPs, ESPPs or overseas assets?
NRIs, returning Indians and individuals with foreign investments or bank accounts — get expert help from EZTax.
Get Expert Assistance
Home > Tax Tools & Calculators > Reverse Charge Mechanism (RCM) Calculator
The EZTax RCM Calculator estimates GST payable under reverse charge, including the tax breakup, cash-payment requirement, and potential eligible Input Tax Credit (ITC).
Use the EZTax Reverse Charge Mechanism (RCM) Calculator to estimate your RCM tax liability, required cash payment, and potential eligible ITC based on applicable GST rules.
Under RCM, the recipient of specified goods or services pays GST instead of the supplier. It applies only when the relevant legal provisions and notification conditions are satisfied.
ℹ️ Refer @ Reverse Charge Mechanism (RCM) under GST - Explained for more information.
The calculator estimates total RCM tax, the CGST and SGST/UTGST or IGST breakup, cash-payment requirement, potential eligible Input Tax Credit (ITC), and estimated non-creditable tax based on your inputs.
No. Purchases from unregistered suppliers do not automatically attract RCM. Liability depends on the applicable GST provisions, notified categories, and transaction-specific conditions.
Enter the taxable value excluding GST. The calculator assumes you have already determined the correct taxable value and does not calculate special valuation adjustments.
RCM tax is calculated by multiplying the taxable value by the applicable GST rate.
For example, ₹50,000 at an applicable rate of 18% produces an estimated tax of ₹9,000. The calculation does not independently verify the rate or RCM applicability.
The calculator uses a total GST rate of 5% for GTA transactions confirmed as liable to RCM. Selecting GTA alone does not establish applicability; the relevant conditions, exemptions, and forward-charge position must also be checked.
Supplier registration status does not directly change the arithmetic when the taxable value and GST rate remain the same. However, supplier status and other transaction-specific conditions may affect whether RCM applies. Verify the applicable provisions before relying on the estimate.
It uses your selected eligibility:
The estimate does not independently confirm your legal entitlement to ITC.
GST payable under RCM must be discharged through the electronic cash ledger and cannot be paid using the electronic credit ledger. Eligible ITC may be claimed separately after payment, subject to applicable conditions. The displayed cash payment requirement does not account for an existing cash ledger balance.
Use the result as a supporting estimate. Before filing, verify RCM applicability, taxable value, GST rate, nature of supply, supporting documents, and ITC eligibility.
The calculator excludes interest, penalties, compensation cess, imported goods, special valuation rules, and return-level rounding adjustments.
ℹ️ Refer @ GSTR 3B Explained for more information.
Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.