Know if self generated invoice is required for RCM under GST

Last Updated On: Nov. 30, 2021, 11:49 p.m.



What is Reverse Charge Mechanism (RCM)?

Reverse Charge Mechanism under GST is a process where the GST payment is made by the receiver instead of supplier.In this case, the liability of paying GST is transfered to the recipient/receiver instead of the supplier.


Is Self generated invoice required for RCM?

According to the section 9(3) of the CGST Act, in respect of specified categories of goods and services, the recipient of supply is required to pay tax under reverse charge and these provisions have been specified in Notification 4/2017 Central Tax (Rate) and Notification 13/2017 Central Tax (Rate) respectively, as amended from time to time. The person liable to pay tax under reverse charge shall be required to issue an invoice in respect of goods /services received by him from the unregistered supplier within the time limits specified, and shall issue a payment voucher at the time of making payment to such supplier these are popularly known as “self-generated Tax Invoice”.

As per the 2nd Proviso to rule 46, these invoices may be issued on a consolidated basis at the end of the month covering all supplies received under RCM. Therefore these invoices will act as a document for taking GST Credit in case of Goods/Services covered under RCM.


Components which are mandatory as per the rule 46

  • Name and address of the supplier;
  • Unique invoice number;
  • Date of its issue;
  • Place of supply;
  • address of delivery where the same is different from the place of supply;
  • whether the tax is payable on reverse charge basis
  • Registered person's own GSTIN,
  • name and address;
  • HSN code and
  • description Quantity in case of goods and unit or Unique Quantity Code thereof;
  • Total value of supply of goods or services or both;
  • Taxable value of the supply of goods or services or both taking into account discount or abatement, if any;
  • Rate of tax and tax amounts;


What is the Time limit to issue invoice:

Issuing the invoice shall be at the earliest of the following:

  • Date of Receipt of goods/service
  • Date of payment to supplier
  • Date immediately following 30 days (For goods) / 60 days (For service) from the date of issue of invoice by the supplier.


In case of when the time of supply is not determinable, it shall be the date of entry in the books of Ac's of the recipient.



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