Businesses receiving goods or services covered by reverse charge often stumble on where to declare the liability in Form GSTR-3B. Because reverse charge applies to incoming purchases, accountants occasionally look for inward supply breakdowns across Table 3 tiles or confuse Table 3.2 reporting. Understanding the exact statutory structure keeps your return compliant and avoids recovery notices.
Where to report inward supply tax liability under reverse charge
Inward supplies where tax is payable on a reverse charge basis under Section 2(98) and Section 9(3) of the CGST Act are declared in tile 3.1, specifically row 3.1(d) "Inward supplies liable to reverse charge". Per the GSTN GSTR-3B User Manual, Table 3.1(d) is auto-drafted from your generated Form GSTR-2B when registered suppliers mark the supply as reverse charge in their GSTR-1 or GSTR-1A.
To understand the complete monthly layout and how auto-population feeds the summary return, see our guide on GSTR-3B meaning, format, and how GSTR-2B feeds it.
Common mistake: Attempting to pay reverse charge liability using input tax credit balance in your electronic credit ledger. Under Section 49(4) read with Section 2(82) of the CGST Act, credit ledger balances can only discharge "output tax" on outward supplies. Reverse charge tax is not output tax for the recipient, so the portal requires 100 percent payment in cash.
Why Table 3.2 does not capture inward supplies
A frequent point of confusion is Form GSTR-3B Table 3.2. Taxpayers often wonder if inter-State inward supplies under reverse charge belong in Table 3.2. The answer is no.
As specified in Rule 59 of the CGST Rules and official portal guidelines, Table 3.2 captures an informative sub-breakup of outward taxable supplies already included in Table 3.1(a). It details inter-State supplies made to unregistered persons, composition taxable persons, and UIN holders by place of supply. Inward supplies received under reverse charge are reported exclusively in Table 3.1(d) and must never be entered in Table 3.2.
Claiming input tax credit on RCM inward supplies in Table 4(A)(3)
Tax paid on inward supplies under reverse charge falls within the statutory definition of "input tax" under Section 2(62) of the CGST Act. Once you discharge the liability in cash in Table 6.1, you can claim input tax credit in Table 4(A)(3) "Inward supplies liable to reverse charge (other than 1 & 2 above)" of the same return period.
If the inward service or good is used partly for non-business purposes or exempt supplies, appropriate reversals must be executed under Table 4(B). Review the detailed mechanisms in our breakdown of GSTR-3B Table 4B ITC reversal rules.
Worked example: RCM tax liability and ITC claim
Consider an enterprise, ABC Traders in Maharashtra, receiving goods transport agency (GTA) services of ₹1,00,000 and legal consultancy services of ₹50,000 from advocates during October 2026. Both supplies fall under Section 9(3) reverse charge at 5 percent and 18 percent GST respectively, with intra-State supply terms (CGST 2.5% + SGST 2.5% for GTA, and CGST 9% + SGST 9% for legal fees).
| Inward supply type | Taxable value | CGST (₹) | SGST (₹) | GSTR-3B reporting tile |
|---|---|---|---|---|
| GTA freight services (5%) | ₹1,00,000 | ₹2,500 | ₹2,500 | Table 3.1(d) liability & Table 4(A)(3) ITC |
| Legal consultancy services (18%) | ₹50,000 | ₹4,500 | ₹4,500 | Table 3.1(d) liability & Table 4(A)(3) ITC |
| Total RCM liability | ₹1,50,000 | ₹7,000 | ₹7,000 | Paid via Cash Ledger in Table 6.1 |
Calculation formulas for Table 3.1(d) liability:
CGST = (₹1,00,000 × 2.5%) + (₹50,000 × 9%) = ₹2,500 + ₹4,500 = ₹7,000
SGST = (₹1,00,000 × 2.5%) + (₹50,000 × 9%) = ₹2,500 + ₹4,500 = ₹7,000
Total cash payment required in Table 6.1 = ₹14,000. Upon payment, ABC Traders avails ₹7,000 CGST and ₹7,000 SGST in Table 4(A)(3) as available input tax credit.
Unregistered suppliers and invoice rules under Rule 47A
When inward supplies liable to reverse charge are received from unregistered suppliers under Section 9(3) or Section 9(4), the recipient must issue an invoice under Section 31(3)(f). As notified under Notification No. 20/2024-Central Tax inserting Rule 47A into the CGST Rules, such invoices must be issued within thirty days from the date of receipt of the supply. These recipient-issued invoices do not require an Invoice Reference Number (IRN) on the e-invoice portal.
“Reverse charge liability is paid only from cash ledger (or the reverse-charge negative-liability balance).” Source: GSTN User Manual on Table 6.1 Payment of Tax
Frequently asked questions
Can you pay RCM liability in Table 3.1(d) using input tax credit?
No. Under Section 49(4) of the CGST Act, electronic credit ledger balance can only pay output tax on outward supplies. Reverse charge liability is paid exclusively in cash through the electronic cash ledger.
When does RCM inward supply appear in Table 3.2?
Table 3.2 is meant exclusively for reporting outward inter-State taxable supplies made to unregistered persons, composition taxable persons, and UIN holders. Inward supplies subject to reverse charge are never reported in Table 3.2.
Can you claim ITC in Table 4(A)(3) in the same month you pay RCM in Table 3.1(d)?
Yes. Once you declare tax liability under Section 9(3) in Table 3.1(d) and pay via the cash ledger, you can avail matching ITC under Table 4(A)(3) in the same return, provided the credit is not restricted under Section 17(5).
Verify your RCM invoices in GSTR-2B
Identify which suppliers reported inward supplies under reverse charge and verify against your purchase register. Your GSTR-2B and purchase register files are read in your browser and never uploaded to any server.
Last checked: 22 October 2026. Sources: CBIC Tax Information Portal, GSTN GSTR-3B User Guide.