List of Services Covered Under RCM in GST 2026 [PDF Download]
RCM on services under GST is mainly governed by Notification No. 13/2017-Central Tax (Rate) under which the recipient pays GST instead of the supplier for specified services
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Reverse ChargeMechanism under GST applies to specified services notified under Notification No. 13/2017-Central Tax (Rate), dated 28 June 2017, as amended. Under RCM, the recipient pays GST instead of the supplier. This article gives the updated 2026 list of services covered under RCM in GST and explains who must pay tax. Meaning of RCM Under GST Reverse Charge Mechanism means...
Reverse ChargeMechanism under GST applies to specified services notified under Notification No. 13/2017-Central Tax (Rate), dated 28 June 2017, as amended. Under RCM, the recipient pays GST instead of the supplier. This article gives the updated 2026 list of services covered under RCM in GST and explains who must pay tax.
Meaning of RCM Under GST
Reverse Charge Mechanism means the liability to pay GST shifts from the supplier to the recipient.
Section 2(98) of the CGST Act, 2017 defines reverse charge. The definition covers tax payable by the recipient under Section 9(3) or Section 9(4) of the CGST Act and Section 5(3) or Section 5(4) of the IGST Act.
Section 9(3) applies to notified goods and services. For services, the main notification is Notification No. 13/2017-Central Tax (Rate), dated 28 June 2017.
Section 9(4) applies to specified supplies received by specified registered persons from unregistered suppliers. After the amendment effective from 1 February 2019, Section 9(4) does not apply to every purchase from an unregistered person. It applies only where the Government notifies the class of registered persons and the category of supply.
Why Businesses Should Check The RCM Services List
RCM liability is a recipient-side GST liability. The supplier does not collect GST in the usual manner for notified RCM services. The recipient has to identify the service, pay GST in cash, report it in GSTR-3B, and claim ITC subject to eligibility.
This review is important for legal fees, GTA bills, security services, rent, director payments, sponsorship expenses, recovery agent charges, and real estate development transactions. A missed RCM entry creates interest exposure. An incorrect ITC claim creates reversal and penalty risk.
List Of Services Covered Under RCM In GST
The following table gives the updated list of major services covered under RCM under Notification No. 13/2017-Central Tax (Rate), as amended.
| Sl. No. | Service covered under RCM | Supplier of service | Recipient liable to pay GST under RCM |
| 1 | Goods Transport Agency service for transport of goods by road | Goods Transport Agency | Specified recipients such as factory, society, co-operative society, GST registered person, body corporate, partnership firm, casual taxable person |
| 2 | Legal services | Individual advocate, senior advocate or firm of advocates | Business entity located in taxable territory |
| 3 | Arbitral tribunal services | Arbitral tribunal | Business entity located in taxable territory |
| 4 | Sponsorship services | Any person other than a body corporate | Body corporate or partnership firm located in taxable territory |
| 5 | Services by Central Government, State Government, Union Territory or local authority | Government or local authority | Business entity located in taxable territory |
| 5A | Renting of immovable property by Government or local authority | Government or local authority | Registered person |
| 5AA | Renting of residential dwelling | Any person | Registered person |
| 5AB | Renting of immovable property other than residential dwelling | Unregistered person | Registered person, other than composition taxpayer |
| 5B | Transfer of development rights or FSI for construction of a project | Any person | Promoter |
| 5C | Long-term lease of land for construction of a project | Any person | Promoter |
| 6 | Director services | Director of a company or body corporate | Company or body corporate |
| 7 | Insurance agent services | Insurance agent | Person carrying on insurance business |
| 8 | Recovery agent services | Recovery agent | Banking company, financial institution or NBFC |
| 9 | Copyright services relating to original dramatic, musical or artistic works | Music composer, photographer, artist or similar person | Music company, producer or similar recipient |
| 9A | Copyright services relating to original literary works | Author | Publisher, unless the author opts for forward charge as per prescribed conditions |
| 10 | Services by members of Overseeing Committee | Members of Overseeing Committee constituted by RBI | Reserve Bank of India |
| 11 | Direct Selling Agent services | Individual DSA other than body corporate, partnership firm or LLP | Banking company or NBFC |
| 12 | Business facilitator services | Business facilitator | Banking company |
| 13 | Business correspondent services | Agent of business correspondent | Business correspondent |
| 14 | Security services by supply of security personnel | Person other than a body corporate | Registered person |
| 15 | Renting of passenger motor vehicle | Person other than body corporate, subject to notified conditions | Body corporate |
| 16 | Securities lending services under SEBI Securities Lending Scheme, 1997 | Lender | Borrower |
Reporting of RCM in GSTR-3B
The recipient reports RCM liability in GSTR-3B. The tax is paid in cash first. Eligible ITC is then claimed in the same return or as per applicable GST reporting practice, subject to eligibility.
Businesses should maintain a separate RCM register. The register should contain supplier name, GSTIN status, nature of service, invoice value, RCM entry, tax rate, tax paid, ITC eligibility, self-invoice number, and payment voucher details.
Practical RCM Checklist For Businesses
Before filing GSTR-3B, businesses should review legal expenses, freight expenses, rent ledger, security expenses, director payments, sponsorship expenses, recovery agent charges, vehicle hire charges, and real estate project expenses.
The accounts team should check three points for every RCM entry.
First, whether the service is covered under Notification No. 13/2017-Central Tax (Rate). Second, whether the supplier and recipient match the entry. Third, whether GST has been paid in cash and ITC has been claimed only where eligible.
Conclusion
The list of services covered under RCM in GST is mainly governed by Notification No. 13/2017-Central Tax (Rate) dated 28 June 2017, as amended. For 2026 compliance, businesses should pay attention to GTA services, legal services, sponsorship, rent, director services, security services, passenger motor vehicle renting, and real estate-related entries.
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