Reverse Charge Mechanism (RCM) on online membership purchase

Hi,

Recently I have purchased a software membership of $170 from a Malaysian website. The website didn't provide any invoice, except an auto-generated payment receipt.

Do I really need to raise a self-invoice applying the RCM and pay the 18% reverse charge GST? Or, can I just raise a self-invoice without applying the RCM? Or, Can I just show it as an expense?

Replies (2)
Quick Summary
This discussion addresses whether GST under the Reverse Charge Mechanism (RCM) is applicable when purchasing an online software membership from overseas. The user received only a payment receipt and is unsure if they must raise a self-invoice with RCM, raise one without RCM, or simply record it as an expense. The consensus is that RCM and self-invoicing are mandatory, requiring GST payment and subsequent ITC claim.

You will have to pay GST under reverse charge mechanism

RCM and self-invoicing mandatory. 

Pay GST and claim ITC

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