Reverse Charge Mechanism in GST - Self Invoicing - GST Ready Reckoner - GST

Reverse Charge Mechanism in GST - Self Invoicing What is the Self Invoicing? Self-invoicing is to be done when purchased from an unregistered supplier, and such purchase of goods or services falls under RCM. This is because your supplier cannot issue a GST-compliant invoice to you, and thus you become liable to pay taxes on their behalf. Hence, self-invoicing, in this case, becomes necessary. Invoicing Rules under RCM Issue of Invoice In terms of section 31(3)(f) of the CGST Act, 2017 a registered person who is liable to pay tax under Section of 9(3)/9(4) of the CGST Act [within the period as may be prescribed (w.e.f. 01.11.2024 vide N.No. 17/2024 dated 27/09/2024) Inserted vide Finance (No. 2) Act, 2024 ] , shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both. The second proviso to rule 46 of CGST Rules 2017 provides that where an invoice is required to be issued under section 31(3)(f) of the CGST Act , a registered person may issue a consolidated invoice at the end of a month for supplies covered under Section 9(4), the aggregate value of such supplies exceeds ₹5,000/- in a day from any or all the supplies. [ Omitted w.e.f. 01.11.2024 vide N.No. 20/2024 dated 08.10.2024 ] Time limit for issuing tax invoice in cases where recipient is required to issue invoice under section 9(3) or (4) [ Rule 47A ] [ Inserted vide N.No. 20/2024 date 08.10.2024 w.e.f. 01.11.2024 ] Notwithstanding anything contained in rule 47, where an invoice referred to in rule 46 is required to be issued under section 31(3)(f) by a registered person, who is liable to pay tax under section 9(3) or (4) , 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. Issue of Payment Voucher A registered person liable to pay tax under reverse charge (for supplies on which tax is payable under RCM) has to issue an invoice in respect of goods or service or both received by him. Such a registered person in respect of such supplies also has to issue a payment voucher at the time of making payment to the supplier. As per Section 31(3)(g) of CGST Act 2017 read with rule 52 of CGST Rule,2017 .