GSTN has issued an advisory recently that documents reporting in GSTR-1 becomes mandatory from the May 2025 return period.
Many taxpayers have earlier ignored documents reporting under GST.
Now, this advisory is increasing awareness on proper documentation, especially on RCM transactions.
Taxpayers are generally aware that a self-invoice is needed for purchases from unregistered suppliers under RCM. However, many still unaware that payment vouchers are also mandatory under RCM.
When to Issue a Payment Voucher?
Section 31(3)(g) of the CGST Act mandates that a registered person must issue a payment voucher at the time of paying the supplier under RCM cases.
- Self-invoice: Required only when the supplier is unregistered (Section 31(3)(f)).
- Payment voucher: Required for both registered and unregistered suppliers when payment is made under RCM.
Note: Government has also clarified that payment vouchers must be issued for RCM payments made to foreign suppliers.
When to Report in GSTR-1
Transactions must be reported based on the time of supply u/s 13(3)(g) of the CGST Act.
In GSTR-1, Table 13 -> Serial No. 7 you will be able to see the payment voucher - requires details like voucher serial numbers issued, cancelled, and net issued during the tax period.
Details Required in the Payment Voucher
A payment voucher referred to in clause (g) of sub-section (3) of section 31 shall contain the following particulars, namely:
- Name, address and GSTIN (if registered) of the supplier.
- A consecutive serial number not exceeding 16 characters of any combination which unique for the financial year.
- Date of issue of payment voucher.
- Name, address, and GSTIN of the recipient.
- Description of the goods and service on which tax is paid on a reverse charge basis.
- Amount paid to the supplier.
- The rate and amount of tax charged under different heads CGST, SGST/UTGST or IGST and cess.
- Place of supply if the transaction is interstate along with the state name and code.
- Signature or Digital signature of the supplier or the authorized representative of the supplier
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