Self invoice/ payment vr - igst cgst sgst

In the scenario where a Haryana-based business receives Goods Transport Agency (GTA) services for the transportation of material to Delhi, the GST liability is determined by the Reverse Charge Mechanism (RCM), provided the GTA has not opted to pay tax under the forward charge mechanism (12% with ITC).

Key Clarifications:

• Who Pays (RCM): If the GTA has not opted for the forward charge mechanism, the recipient (your business in Haryana) is liable to pay the GST under RCM, provided you are a registered person (or one of the other specified categories like a factory, society, or body corporate).

• Nature of Tax (IGST vs. CGST/SGST):

  • For B2B transactions where the recipient is a registered person, the Place of Supply is the location of the registered recipient.

  • Since your business is in Haryana and the recipient (you) is registered in Haryana, the transaction is treated as an Intra-state supply.

  • Therefore, you are liable to pay CGST + SGST under the Reverse Charge Mechanism, not IGST.

Summary Table

Important Notes:

1. Check the GTA Invoice: Review the invoice issued by the transporter. If the GTA has opted for the forward charge (FCM) at 12% and has already charged you GST on the invoice, you do not need to pay it again under RCM. However, if they have charged 5% or no GST, and they have not opted for FCM, RCM applies.

2. Registration: If you are a registered taxpayer, the liability falls on you regardless of the movement of goods from Haryana to Delhi, because the place of supply for a registered recipient is their own registered location.

3. Documentation: As the recipient paying under RCM, ensure you issue a Self-Invoice for the services received and maintain a Payment Voucher for the tax paid to the government. You can claim the Input Tax Credit (ITC) for the GST paid under RCM if the service is used for business purposes.