Reverse charge issue

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2017 Dear sir
Please note some of our registered vendor raising us invoice inclusing gst amount..so whether gst on reverse charge applicable or not?

Please note both are registered and gst amount not mentioned in bill and gst no updated in bill.

Thanks
Birender

Arun Kumar Singh

Arun Kumar Singh (Expert)
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23 August 2017 GST amount is not mention in invoice then you cannot take the input tax credit.

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2017 Yes we will not take sir input..
But pls advise whether any reverse charge laibility arise or not in this type of invoices?

Arun Gupta

Arun Gupta (Expert)
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24 August 2017 tell him to issue revise invoice with proper rules

Arun Gupta

Arun Gupta (Expert)
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24 August 2017 Goods & Services Received from GST Reg. Supplier is not liable for reverse charge(exception- Goods & Srvices covered under RCM)

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2017 They are denying for revise invoice and now we are not working with them...so please advise whether we need to deposit tax om rcm or leave it as they are registered and gst no mention in invoice only gst amount not mention...i am confuse..please clarify.

Arun Gupta

Arun Gupta (Expert)
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25 August 2017 is he registered as composition dealer?

Querist : Anonymous

Querist : Anonymous (Querist)

25 August 2017 He is registered as a normal dealer

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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22 July 2025 Got it! Here's a clear explanation regarding your GST reverse charge issue with your vendor invoices:

Situation Recap:
Vendor is registered under GST (normal taxpayer, not composition).

Vendor is raising invoices including GST, but GST amount is not separately mentioned on the invoice.

GST number is updated on the invoice.

Your question:

Is reverse charge liability applicable on such invoices?

Can you claim ITC?

What if vendor refuses to issue a revised invoice?

Key Points:
Reverse Charge Mechanism (RCM) under GST applies only on specified goods/services or notified categories.

If your purchase is not from an unregistered supplier or not from categories notified for RCM, no reverse charge applies.

Since your vendor is registered and normal taxpayer, you are generally NOT liable to pay tax under reverse charge.

Invoice Requirements for ITC Claim:

GST law mandates tax amount must be separately shown on the invoice to claim Input Tax Credit.

If GST amount is not separately mentioned, you cannot claim ITC on that invoice.

ITC eligibility depends on compliance of invoice format as per GST rules.

Vendor refuses to issue a revised invoice showing GST separately:

You have no ITC claim without proper invoice.

But you are not required to pay GST under reverse charge, because the vendor is registered and supplying the goods/services.

What if the vendor is registered under Composition scheme?

Composition taxpayers do not charge GST on invoices.

Purchaser is liable to pay GST under reverse charge on purchase from composition dealers.

You mentioned vendor is a normal dealer, so this does not apply here.

What should you do?
Since the vendor is registered and GST number is on the invoice, but GST amount is missing, you cannot take ITC, but no reverse charge liability arises on you.

You can avoid doing business with the vendor if they don’t comply with proper invoicing.

No need to deposit tax under RCM unless your purchase falls under notified categories or is from an unregistered dealer.

Maintain documentation of communication for audit purposes.

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