RCM Liability on Delayed Invoices – GST Implications

[Ramanathan Seshan]

Dear Experts,

Company A took a premises on rent in January 2025. Due to disputes with the unregistered vendor, rent invoices for February and March 2025 were not raised at the time and were only issued in April 2025. No provision for these expenses was made in the books for FY 2024–25. Additionally, as the vendor is unregistered, Company A is liable to pay GST under reverse charge mechanism (RCM) on the rent. Since the invoices were received only in April 2025, how should this RCM liability be disclosed and paid—can you please throw light of disclosures to be made in GSTR-3B and GSTR-9 and its implications.

Regards,

S Ram

AI Summary

Company Faces GST Reverse Charge Liability for Rent Paid to Unregistered Vendor Under Section 9(3) A company rented premises from an unregistered vendor in January 2025. Rent invoices for February and March were delayed until April 2025 due to disputes. Since the vendor is unregistered, the company is liable for GST under reverse charge mechanism. The RCM liability arises in FY 2025-26, to be reported in April 2025's GSTR-3B, with no disclosure required in FY 2024-25's GSTR-9.