New Rule 47A - Time limit for issuance of Self-Invoice under RCM

[Shivam Agrawal]

Dear Members,

I am writing to draw your kind attention to insertion of new Rule 47A in CGST Rules, 2017 with effect from the 1st day of November, 2024, made by the CGST (Second Amendment) Rules, 2024 notified vide Notification no. 20/2024 – Central Tax. The bare text of which is extracted as below for your easy reference.

Amendment:

“47A.  Time  limit  for  issuing  tax  invoice  in  cases  where  recipient  is  required  to  issue  invoice.–

Notwithstanding anything contained in rule 47, where an invoice referred to in rule 46 is required to be issued under clause (f) of sub-section (3) of section 31 by a registered person, who is liable to pay tax under sub-section (3) or sub-section (4) of section 9, he shall issue the said invoice within a period of thirty days from the date of receipt of the said supply of goods or services, or both, as the case may be.”

Further, I would like to add context/ background to the above amendment in my opinion, which is as follows:

Analysis:

Section 117 of the Finance (No. 2) Act, 2024 amended Section 13(3) of CGST Act, 2017 by inserting new sub-clause (3) and amending sub-clause (2) and First Proviso to sub-section; to provide that time of supply in respect of services received from unregistered person and attracting RCM will be earlier of:

► Date of payment;

► Date of issuance of self-invoice.

Also, Section 122 of the Finance (No. 2) Act, 2024 amended Section 31(3)(f) of CGST Act to empower Government to prescribe time-limit to issue self-invoice in case of RCM supplies received from unregistered persons.

In furtherance of above amendments in Time of Supply of services received from unregistered person attracting RCM and Self-Invoicing provision, the Government has now inserted new Rule 47A to prescribe the time-limit to raise Self-Invoice as “within a period of 30 days from the date of receipt of the said supply of goods or services, or both”.