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Reverse charge invoice creation

Deepak Gupta (Accountant) (28 Points)

04 September 2017

I came to know from CA's that if i am paying some expenses to unregistered dealer, I am liable to pay RCM. On this isssue i have following questions -

(A) At the end of month should i generate invoice of supply of this myself ?

(B) Should i feed entry of this invoice in sales voucher to raise liability of GST ?

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13 Replies

Ajay Kumar Maggidi (Manager - Finance & Accounts) (2068 Points)
Replied 04 September 2017

Hi deepak

If a registered person receives goods or services from unregistered persons such registered person shall liable to pay GST under RCM basis, provided that such inward supplies exceeds Rs. 5000 per transaction per day

A. Registered Person who pays tax under RCM shall Issue a Payment Voucher to Supplier

B. you should book GST liability in your books for such inward supply

C. yes, you have to show it in GSTR 1

Mr. Singh (497 Points)
Replied 05 September 2017

1. You have make a self named consolidated invoice at the end of the month, 2. You can't t do the same entry twice as you have already enter your all expenses And at the time of consolidated invoice you have to make that one in excel and you will pass the entry of tax only 3.You have to pass that entry in gstr2 in column no. 4B

ANKR (PARTNER) (118 Points)
Replied 05 September 2017

Mr. Singh I want to know that in case of self invoice,in case of rent paid to unregistered landlord then bill to be raise in the name of landlord with yes option on RCM in bill,so please suggest that I am correct

vikram kerekar (1241 Points)
Replied 05 September 2017

but RCM entris where is shwon in GSTR-1 or GSTR-2.

Mr. Singh (497 Points)
Replied 05 September 2017

No, You have to raise self invoice , We are going to take input of tax paid not landlord , And please maintain separate invoice serial no. for RCM invoice, So you have to make only 12 invoice for RCM ,And also maintain separate "voucher Type " For payment ( You can easily prepare Voucher type in tally for payments )to get correct serial no. to fill in payment voucher serial no. Under column 13 of Gstr1 ,. Mr. Vikram ji you have to enter RCM entries in column 4B of Gstr2

1 Like

ANKR (PARTNER) (118 Points)
Replied 05 September 2017

Mr.Singh ,so what is the use of GST invoice in which mention like that reverse charge payable ( yes/no).

Gaurav Palta (484 Points)
Replied 05 September 2017

Is it required to be filled in GSTR 1(apart from docs issued) if yes how and where?

Mr. Singh (497 Points)
Replied 05 September 2017

Ankur ji, You can also use that invoice , And can maintain each payment wise invoice, But To make your work easy , You can make a consolidated invoice and separate invoice no. for RCM , If you can maintain each payment wise invoice and want to keep your same serial no. then you can also use it, But on invoice name you have to fill your name, And In particulars you have to write Like this " Rent paid to sham etc."

Sudip Kumar Shaw (Live Simple.. Achieve BIG..) (493 Points)
Replied 05 September 2017

Can we prepare consolidated Invoice of RCM for every month or should it be for every day ???

Anamika (Working) (119 Points)
Replied 05 September 2017

One consolidated Invoice can be raised-Please shaare the legal support.

Also please share the self invoice(signed copy)- if anyone has raised.

Thaks.

ANKR (PARTNER) (118 Points)
Replied 05 September 2017

thanks Singh ji

RAJA P M ("Do the Right Thing...!!!") (127334 Points)
Replied 05 September 2017

All of you understand the meaning of "SELF INVOICE".

This purpose only we can calculate the Tax values for RCM payments. Not, Produce anywhere.

You can prepare Consolidates or Single Transaction based.

If you prepare Consolidated you can separate as Tax rates. Dont be create whole transaction in one Invoice. But, Its not useful for segregate your accounts.

If ypu prepare Single transaction based you can exactly find out this to Payment Voucher. Then accounts handled easily...

Also you must not it "Revese Charge - Yes/No as YES"

So, Decided in Your choice based on uses...