GST RCM List for Goods and Services from 1 Nov 2026

Reverse charge (RCM) turns the usual GST rule around: the buyer, not the seller, pays the tax to the government. Which supplies are covered is set by notification, and the list changed again on 1 November 2026. The Central Government issued the amending notifications on 27 October 2026 to give effect to the recommendations of the 57th GST Council meeting held on 8 October 2026.

This article sets out what changed, then gives the complete updated reverse charge list for goods and for services, and the steps a business has to follow when it is the one paying the tax.

What changed in the RCM list on 1 November 2026?

Two reverse charge notifications came into force on 1 November 2026, along with related changes to TDS, registration and e-commerce rules:

Nothing else in either RCM list was amended. The consolidated text of Notification 4/2017 (goods) had last been changed in October 2024, when metal scrap was added, and Notification 13/2017 (services) in January 2025, according to the notes in the new notifications themselves.

Which goods are newly under reverse charge?

Notification No. 04/2026-Central Tax (Rate) inserts four entries into the goods RCM list. In each case the supplier is any unregistered person and the recipient is any registered person:

Headings are those of the First Schedule to the Customs Tariff Act, 1975. The same four entries were added to the IGST list for inter-state purchases by Notification No. 04/2026-Integrated Tax (Rate).

The Council's reasoning, as GSTN's FAQs on the 57th Council meeting explain, is to copy the framework built for metal scrap in October 2024: reverse charge when the seller is unregistered, and 2% TDS when both sides are registered. Collection from small, scattered scrap dealers is hard, so the tax is collected from the registered buyer instead.

Two points from those FAQs matter in practice:

• The supplier's turnover does not matter. The registered buyer pays GST under RCM even if the unregistered seller is below the registration threshold.
• Suppliers still have to register once they cross the threshold. From then on the purchase is a normal forward charge supply and TDS applies instead.

What is the complete RCM list for goods from 1 November 2026?

This is the full table in Notification No. 4/2017-Central Tax (Rate) as it stands from 1 November 2026, combining the consolidated text maintained by ICAI's GST and Indirect Taxes Committee with the new entries:

Reverse charge changes who pays the tax, not how much. The rate is whatever the GST rate schedule (Notification 9/2025-Central Tax (Rate) since 22 September 2025) prescribes for the goods, so check the HSN code of each item you buy.

What else changed for scrap and used cooking oil buyers?

The RCM entry is one part of a package, and buyers of these goods now face three possible obligations depending on who they buy from:

1. Seller unregistered: you pay GST under reverse charge and issue a self-invoice.
2. Seller registered: you deduct 2% TDS from the payment under section 51 of the CGST Act and deposit it, because Notification No. 07/2026-Central Tax adds these four goods (alongside metal scrap) to the list of recipients who must deduct tax. You file Form GSTR-7 and issue a TDS certificate.
3. You are not yet registered for TDS: you need a separate TDS registration in Form GST REG-07. GSTN's TDS registration advisory of 1 November 2026 says to pick "Others" under constitution of business and type the category, for example "Waste and scrap of plastics dealers".

Separately, Notification No. 06/2026-Central Tax rewrites the proviso to Notification 5/2017-Central Tax. That notification normally exempts a person from registration if all their supplies are taxed under reverse charge in the buyer's hands. From 1 November 2026 the exemption does not apply to anyone supplying used cooking oil, plastic scrap, tyre scrap, metal scrap or e-waste, so these suppliers must take registration when their turnover crosses the threshold, even though their buyers pay the tax while they remain unregistered.

What changed for renting cars and cabs to companies?

Notification No. 08/2026-Central Tax (Rate) makes a one-figure change to S. No. 15 of the services RCM list, which covers renting of a motor vehicle designed to carry passengers, with the cost of fuel included, to a body corporate. It replaces "6" with "9" in the supplier column.

The entry now reads, in effect: reverse charge applies where the supplier is any person other than a body corporate who supplies the service to a body corporate and does not issue an invoice charging central tax at 9%. The IGST version (S. No. 17 of Notification 10/2017-Integrated Tax (Rate)) changes "12" to "18" in the same way.

In plain terms:

• If a cab operator that is not a company charges 18% GST (9% CGST + 9% SGST, or 18% IGST) on its invoice, it pays the tax itself under forward charge, and the company claims input tax credit in the normal way.
• If it charges a lower rate, or no GST at all, the company receiving the service pays GST under reverse charge.

The earlier test referred to 6% CGST (12% in total), a rate that the September 2025 rate rationalisation had removed for this service. The notification brings the RCM test in line with the 18% option. As TaxGuru's note on the amendment points out, it does not change the GST rate on passenger transport or rental services generally. If your company hires cars from individuals, proprietorships or partnership firms, check every invoice from November onwards against the 18% test.

What is the complete RCM list for services from 1 November 2026?

This is the table in Notification No. 13/2017-Central Tax (Rate) from 1 November 2026, again based on ICAI's consolidated text and the new amendment. The IGST list in Notification 10/2017-Integrated Tax (Rate) mirrors it for inter-state supplies and adds import of services.

Import of services from a supplier outside India also stays under reverse charge under section 5(3) of the IGST Act, with the importer paying IGST.

Did anything change for e-commerce operators under section 9(5)?

Yes, though this is not reverse charge in the strict sense. Under section 9(5) the e-commerce operator (ECO) pays the tax on certain services supplied through its platform as if it were the supplier. Notification No. 09/2026-Central Tax (Rate) substitutes the delivery services entry in that list (Notification 17/2017-Central Tax (Rate)) from 1 November 2026. It now covers:

"Delivery services, other than postal and courier services, except where the person supplying such services through electronic commerce operator is liable for registration under sub-section (1) of section 22"

So when a delivery partner below the registration threshold supplies delivery services through a platform, the platform pays the GST. GSTN's FAQs give the rate as 5% without input tax credit. A delivery provider who is liable to register pays the tax itself.

The same FAQs add that a GTA moving goods ordered through an ECO no longer gets the exemption for transport to unregistered persons (entry 21A of Notification 12/2017), but the ECO is not liable for that GTA service. The GTA pays the tax.

What does the recipient have to do under reverse charge?

When you are liable under RCM, the compliance sits with you:

1. Issue a self-invoice for purchases from an unregistered supplier. Section 31(3)(f) of the CGST Act requires it, and rule 47A of the CGST Rules gives you 30 days from receipt of the supply. From 1 January 2027, businesses within the e-invoicing threshold (aggregate turnover of ₹5 crore and above, per GSTN's advisory) will have to report these self-invoices on the invoice registration portal under the new RCMDOM and RCMIMP supply types.
2. Issue a payment voucher when you pay the supplier, under section 31(3)(g).
3. Work out the time of supply. For goods under section 12(3) it is the earliest of the date you receive the goods, the date of payment and the day after 30 days from the supplier's invoice. For services under section 13(3) it is the earlier of the payment date and the day after 60 days from the invoice.
4. Pay the tax in cash. "Output tax" in section 2(82) excludes tax payable under reverse charge, and section 49(4) lets the electronic credit ledger be used only for output tax, so RCM liability is paid through the electronic cash ledger.
5. Report it in GSTR-3B. Show the liability in Table 3.1(d) (inward supplies liable to reverse charge) and claim the credit in Table 4A(3), if the purchase is used for business and credit is not otherwise blocked.
6. Claim input tax credit in the same month you pay the tax, subject to the usual conditions in section 16.

For scrap and used cooking oil this means keeping an accurate list of which suppliers are registered: RCM applies to the unregistered ones, TDS to the registered ones. Getting the split wrong means either tax not paid or TDS not deducted.

What should businesses do now?

• Scrap, recycling and biodiesel businesses: list every supplier of the four goods, check their GST status, start self-invoicing for unregistered sellers from 1 November 2026, and apply for TDS registration if you buy from registered ones.
• Companies hiring cars and cabs: review rental contracts with non-corporate operators and check whether each invoice charges 18%. Where it does not, book RCM.
• Kitchens, hotels and restaurants selling used cooking oil: if you sell to a registered buyer while unregistered yourself, the buyer will pay the tax, but you must still register once your turnover crosses the threshold.
• Businesses with turnover of ₹5 crore and above: prepare your billing or ERP system for e-invoicing RCM self-invoices from 1 January 2027.

KNAP Advisory's GST return filing team can review your RCM purchases and set up the self-invoicing and TDS process, and our GST registration team can help suppliers who now need to register.

How we checked this. We read the text of Notifications 04/2026 to 10/2026-Central Tax (Rate), the matching Integrated Tax (Rate) notifications and Notifications 04/2026, 06/2026 and 07/2026-Central Tax as issued, together with the GST Council press release on PIB, GSTN's FAQs and its advisories of 16 October and 1 November 2026. CBIC's tax information portal could not be reached when we checked on 3 November 2026, so the gazette serial numbers (G.S.R. numbers) for the rate notifications are not quoted here.

Frequently asked questions

What is the latest GST reverse charge list for goods?

From 1 November 2026, Notification 4/2017-Central Tax (Rate) has fourteen entries: cashew nuts, bidi wrapper leaves, tobacco leaves and raw cotton from agriculturists; mint essential oils, metal scrap, used cooking oil, plastic scrap, tyre scrap and e-waste from unregistered persons; silk yarn; lottery; government sales of used goods and scrap; and priority sector lending certificates.

Which notification added used cooking oil to reverse charge?

Notification No. 04/2026-Central Tax (Rate), dated 27 October 2026, inserted used cooking oil under heading 1518 as S. No. 2A of the goods RCM list, along with plastic, tyre and electronic waste. Notification No. 04/2026-Integrated Tax (Rate) made the same change for inter-state purchases. Both came into force on 1 November 2026.

Is RCM applicable on purchase of plastic scrap from an unregistered dealer?

Yes, from 1 November 2026. Waste and scrap of plastics under heading 3915 bought by a registered person from an unregistered person is taxed under reverse charge, so the buyer pays the GST. Purchases made before 1 November 2026 are not covered by the new entry.

Does RCM apply if the scrap supplier is below the GST threshold?

Yes. GSTN's FAQs on the 57th Council meeting say the registered recipient must pay GST under RCM even if the unregistered supplier's turnover is below the registration threshold. The supplier's small size does not remove the buyer's liability.

Do I deduct TDS or pay RCM when buying e-waste?

It depends on the seller. If the seller of electrical and electronic waste is unregistered, you pay GST under reverse charge. If the seller is registered, you deduct 2% TDS under section 51 from the payment, deposit it and file GSTR-7. You never do both on the same purchase.

What is the rate of GST TDS on plastic, tyre and e-waste scrap?

2%, the same rate as for metal scrap. Under section 51 it is usually split as 1% CGST and 1% SGST on an intra-state purchase, or 2% IGST on an inter-state purchase, deducted from the payment made to a registered supplier.

Do scrap dealers have to register under GST now?

Yes, once their aggregate turnover crosses the threshold in section 22. Notification No. 06/2026-Central Tax removes the registration exemption that otherwise applies to suppliers whose entire output is taxed under reverse charge, for dealers in used cooking oil, plastic scrap, tyre scrap, metal scrap and e-waste.

What changed in RCM on renting of motor vehicles?

From 1 November 2026, a non-corporate supplier renting passenger vehicles with fuel to a body corporate stays out of reverse charge only if its invoice charges central tax at 9%, meaning 18% GST in all. Before the change the test was 6% central tax. If the supplier charges less, the company pays GST under RCM.

Is RCM applicable on cab services from a proprietor charging 5% GST?

Yes, if the service is renting of a passenger vehicle with fuel included to a body corporate. After Notification 08/2026-Central Tax (Rate), only an invoice charging 18% keeps the supply under forward charge. If the proprietor charges 5% or nothing, the company pays GST under reverse charge.

Did the services RCM list get any new services from 1 November 2026?

No new service was added. The only amendment to Notification 13/2017-Central Tax (Rate) is the rate test in S. No. 15 for renting of passenger vehicles. Legal services, GTA, director services, security services, sponsorship, commercial rent from unregistered landlords and the other entries continue as before.

Who pays GST on delivery services booked through an app?

From 1 November 2026, where a delivery partner who is not liable to register supplies delivery services (other than postal and courier) through an e-commerce operator, the operator pays GST under section 9(5), at 5% without input tax credit according to GSTN's FAQs. A delivery provider who is liable to register pays the tax itself.

Is e-invoicing required for RCM self-invoices?

Yes, from 1 January 2027 for businesses within e-invoicing (aggregate turnover of ₹5 crore and above). Notification No. 04/2026-Central Tax extends e-invoicing to supplies received from unregistered persons under reverse charge and to import of services. GSTN has added the RCMDOM and RCMIMP supply types on invoice registration portals for testing.

Within how many days must a self-invoice be issued under RCM?

Within 30 days of receiving the goods or services from an unregistered supplier, under rule 47A of the CGST Rules. The self-invoice is what supports your input tax credit, so missing it risks the credit even when the tax has been paid.

Can input tax credit be used to pay GST under reverse charge?

No. Tax payable under reverse charge must be paid in cash through the electronic cash ledger, because it is not output tax that credit can be set off against. Once paid, the same tax can usually be claimed as input tax credit in that month's return.

Where is RCM shown in GSTR-3B?

The tax payable on inward supplies under reverse charge goes in Table 3.1(d), and the matching input tax credit, where available, is claimed in Table 4A(3) for inward supplies liable to reverse charge (other than imports). Purchases from e-commerce operators under section 9(5) are reported by the operator, not by you.

Does reverse charge change the GST rate on scrap?

No. RCM only shifts who pays the tax. The rate is the one in the goods rate schedule for the item's HSN code, so plastic scrap, tyre scrap, e-waste and used cooking oil are taxed at their normal rates, paid by the buyer when the seller is unregistered.

What is the time of supply for scrap bought under reverse charge?

Under section 12(3) of the CGST Act, it is the earliest of the date you receive the goods, the date you record or make the payment, and the day after 30 days from the date the supplier issues its invoice or bill. GST under RCM is due in the return for the month in which that date falls.

How KNAP Advisory can help

• GST Return Filing
• GST Registration