E-invoice details

The discrepancy between the e-invoice and tax invoice regarding reverse charge (RCM) might indicate an error in reporting or a misunderstanding of RCM rules.

Let's break it down: Understanding Reverse Charge Mechanism (RCM) RCM requires the recipient to pay tax instead of the supplier.

This applies to specific transactions, such as: - *Notified Goods/Services*: Examples include silk yarn, raw cotton, lottery, Goods Transport Agency (GTA) services, and insurance agent services. -

*Supplies from Unregistered Dealers*: Registered persons buying from unregistered dealers are liable to pay GST under RCM. -

*Services through E-commerce Operators*: E-commerce operators pay GST on behalf of service providers.

E-invoicing for RCM Transactions E-invoicing applies to RCM transactions where the supplier is registered and covered under the e-invoicing mandate.

The supplier generates the e-invoice and reports it to the government. For B2B reverse charge invoices, the supplier must generate the Invoice Reference Number (IRN). Validations for RCM in E-invoicing The Invoice Registration Portal (IRP) validates RCM transactions based on specific rules, including setting "Reverse Charges" as "Y" for B2B and SEZ invoices. Possible Reasons for Discrepancy Given the information: - The supplier might be incorrectly reporting RCM in the e-invoice, or the tax invoice is correct, and the e-invoice needs correction. - 

The transaction might not be subject to RCM, and the e-invoice is incorrect. Next Steps 

- Verify the transaction details and RCM applicability with your supplier. - 

Check if the supplier is required to generate e-invoices under GST regulations. -

 Ensure compliance with GST rules and regulations regarding RCM and e-invoicing.

It was an error while generating E invoice, you may contact the vendor to rectify the mistake .

This looks like a mismatch between what the supplier entered in the e-invoice portal (supply type: B2B + Reverse Charge selected) and what they actually printed on the paper invoice (Reverse Charge: No).

The supply type code on the IRN is determined at the time of JSON generation before IRN generation. The code B2B/With reverse charge means the supplier manually selected Reverse Charge when generating the IRN on the IRP. This is different from what the physical invoice says.

For your purposes as the buyer:
- If the supply is NOT under reverse charge in reality (supplier is registered and the supply does not fall under any notified RCM category), the e-invoice has an error in the supply type code.
- You should contact your supplier and ask them to cancel the IRN and regenerate it with the correct supply type (B2B/No reverse charge).
- An incorrect RCM flag on the e-invoice does not trigger actual RCM liability on its own, but it can cause reconciliation issues in GSTR-2B and IMS (the invoice may not auto-populate in the correct column).

Categories where RCM actually applies are listed in Schedule II of the CGST Act and specific notifications. If your supplier is providing a service not covered in those notifications and is themselves a registered person, RCM does not apply. The IRN supply code was selected in error.

This [GST invoice rules and e-invoice guide](https://taxgarden.in/blog/gst-invoice-rules-format-mandatory-fields-e-invoice-india-2026) covers IRN generation requirements and supply type code selection in detail.