Section 31 ( 3) g

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Section 31(3)(g) of the CGST Act mandates registered persons paying tax under the Reverse Charge Mechanism (RCM) to issue a payment voucher. This voucher serves as proof of payment to the supplier, particularly when the supplier is unregistered. It's issued by the recipient at the time of payment and complements the self-invoice. Key components include recipient and supplier details, tax amounts, and a unique serial number.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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28 May 2025 Sec. 31 (3) g cgst payment voucher is mandatory for
Registered person, who pays RCM.
In this regard what is mean by payment voucher.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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03 June 2025 Under Section 31(3)(g) of the Central Goods and Services Tax (CGST) Act, 2017, a payment voucher is mandatory for a registered person who is liable to pay tax under Reverse Charge Mechanism (RCM).

What is a Payment Voucher

A Payment Voucher is a document issued by the recipient of goods or services (that is, the registered person) at the time of making payment to the supplier when the tax is payable under RCM.

Legal Reference

Section 31(3)(g) of CGST Act:
A registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue a payment voucher at the time of making payment to the supplier.

Purpose of Payment Voucher

It acts as proof of payment made to the supplier.

It is used in cases where the supplier is unregistered, and the recipient is liable to pay GST under RCM.

It complements the self-invoice which is also issued by the recipient in RCM cases.

Components of a Payment Voucher (as per Rule 52 of CGST Rules)

A Payment Voucher must include:

Name, address, and GSTIN of the recipient.

A consecutive serial number unique for a financial year.

Date of issue.

Name, address, and GSTIN if registered of the supplier.

Description of goods or services.

Amount paid.

Rate and amount of tax CGST SGST IGST UTGST.

Place of supply if inter-state.

Signature or digital signature of the recipient.

Example Scenario

Suppose:
You are a registered business recipient.
You hire legal services from an unregistered advocate.
Under RCM, you the recipient have to pay GST.

Then:

You issue a self-invoice for the service.

When paying the advocate, you issue a Payment Voucher.

Rajkumar Gutti

Rajkumar Gutti (Querist)
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13 June 2025 I heard that payment voucher is also compulsory for registered supplier. Is it right

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