What services attract Reverse Charge Mechanism (RCM) under GST?

Services subject to RCM under Section 9(3) include Goods Transport Agency (GTA) freight, Legal services by Advocates, Security services, Director remuneration, and Sponsorship services.

How do I mark an expense ledger as RCM applicable in Tally Prime?

Go to Alter > Ledger, select the expense ledger (e.g. Freight Charges), set 'Is GST Applicable' = Applicable, enable 'Set/Alter GST Details', and set 'Is Reverse Charge Applicable' = Yes.

How do I raise RCM tax liability in Tally Prime?

Go to Vouchers > F7 (Journal), press Alt+J (Stat Adjustment), select Nature of Adjustment = Increase in Tax Liability & Input Tax Credit, and debit Input RCM ledger while crediting Output GST RCM ledger.

How does TrulyInvoice handle purchase bills and freight invoices?

TrulyInvoice auto-extracts line items, vendor GSTINs, and rates from supplier purchase bills and freight invoices, auto-posting verified F9 purchase vouchers to Tally Prime in 15 seconds.

How to Calculate RCM Under GST in Tally Prime (2026)

Under the Indian GST regime, the Reverse Charge Mechanism (RCM) shifts tax liability from the supplier to the recipient of goods or services. Common notified services under Section 9(3) include Goods Transport Agency (GTA) freight charges, advocate legal fees, and director remuneration.

Quick Answer: How to Record RCM Entries in Tally Prime?

TrulyInvoice auto-extracts supplier bills, GTA freight invoices, and advocate bills for automated F9 purchase voucher entry in Tally Prime. Under Reverse Charge Mechanism (Section 9(3) / 9(4)), the recipient pays GST directly to the government via F5 Payment and raises ITC liability in Tally Prime using F7 Journal Stat Adjustments (Alt+J).

Configure Expense Ledger: Set 'Is Reverse Charge Applicable' = Yes.
Record Purchase (F9): Record accounting invoice for supplier/freight bill.
Raise Liability (F7): Press Alt+J (Stat Adjustment) to raise RCM tax payable.
Pay Tax & Claim ITC: Pay tax via F5 Payment and offset against regular ITC.

Step-by-Step SOP: RCM Accounting Flow in Tally Prime

Configure Expense Ledger: Go to Alter > Ledger > Freight Charges. Set Is GST Applicable = Applicable and Is Reverse Charge Applicable = Yes.
Record Purchase Bill (F9): Record the accounting invoice from the GTA or legal service provider. Press Alt+A (Tax Analysis) to verify RCM tax liability.
Raise Tax Liability via Journal (F7): Go to F7 Journal > Alt+J (Stat Adjustment). Select Increase in Tax Liability & Input Tax Credit. Debit GST Input RCM ledger and Credit Output GST RCM Payable ledger.
Pay Tax & Claim Credit: Pay tax via F5 Payment and claim the credit in GSTR-3B Table 4A(3).

Auto-Posting Freight & Vendor Invoices with TrulyInvoice

Entering complex RCM freight bills and vendor purchase invoices manually often leads to missed stat adjustments. With TrulyInvoice, PDF invoices and scanned freight bills are parsed automatically using AI.

TrulyInvoice auto-detects vendor GSTINs, RCM indicators, and item descriptions, posting clean F9 Purchase Vouchers to Tally Prime in 15 seconds via the local Port 9000 connector.

How to Calculate & Record Reverse Charge (RCM) in Tally Prime

Quick Answer: How to Record RCM Entries in Tally Prime?

Step-by-Step SOP: RCM Accounting Flow in Tally Prime

Auto-Posting Freight & Vendor Invoices with TrulyInvoice

Stop Manual Voucher Entry.