Reverse Charge Mechanism (RCM) Under GST: Complete List for 2026

Under the normal GST mechanism, the supplier charges and collects GST from the buyer. Under reverse charge, that flips: the recipient is liable to pay GST directly to the government, and in most cases must also self-generate an invoice for the transaction. This applies to specified categories of goods and services (such as certain agricultural produce and raw materials) and, separately, to any supply — regardless of category — received from an unregistered supplier by a registered business, within defined limits.

RCM also applies to a growing list of specific services: legal services from an advocate to a business entity, services from a Goods Transport Agency (GTA) that hasn't opted for forward charge, director's services to their own company, and rent on commercial property from an unregistered landlord to a registered tenant, among others. Many businesses correctly pay their normal outward GST but simply forget these RCM liabilities exist, since no invoice from the supplier prompts them to act.

The GST paid under reverse charge is generally available as input tax credit to the recipient in the same period, provided the self-invoice and payment are done correctly — so the net cash cost is often minimal, but the compliance failure (unpaid RCM liability, discovered on audit) still attracts interest and can trigger a broader review of the business's other filings.

Businesses that engage legal counsel, transporters, or unregistered vendors regularly should have their RCM obligations specifically reviewed, since this is one of the more commonly missed categories in routine GST compliance. Our GST & Tax practice audits RCM exposure and helps businesses build it into their regular filing process.