GST advisory has been provided for the e-invoicing facility rolled out for Self-Invoices under RCM. GSTN has rolled out a new facility for generating e-invoices for recipient-generated self-invoices under the Reverse Charge Mechanism (RCM). It includes specified purchases from unregistered suppliers and import of services.
Following the recommendations of the 57th GST Council Meeting, the facility has been rolled out.
Rollout of Two New Supply Types
Two new supply types have been included in the present e-invoicing system:
Applicability
The facility is tailored for registered taxpayers who have an Aggregate Annual Turnover (AATO) of ₹5 crore or more, subject to applicable GST norms and notifications. The GST notifications regulate the scope and effective date of the requirement.
How will the Facility function?
Eligible registered taxpayers can report their RCM self-invoices via an authorised Invoice Registration Portal (IRP). At the time of reporting, taxpayers should choose the applicable supply type, RCMDOM or RCMIMP. After verifying the invoice information, an Invoice Reference Number (IRN) will be generated.
Facility Available for Testing
This new feature has been made available in the sandbox (testing) environment of all six authorised IRPs. Taxpayers, GST Suvidha Providers (GSPs), Application Service Providers (ASPs), ERP providers, and other integration partners can test this feature and prepare their systems accordingly.
Implementation Date and Further Guidelines
At present, the facility is available merely for testing and system integration. The date of actual execution and start of the related e-invoicing reporting requirements will be declared separately.
Detailed technical guidelines covering specifications, validations, validation codes, and operational requirements will be issued by NIC IRP-1. GSTN and IRPs will conduct a webinar to specify the new facility. Webinar information will be declared separately.
The taxpayers who have a turnover of Rs 5 crore or more must review their current RCM (Reverse Charge Mechanism) self-invoicing process and prepare their accounting or ERP systems for the proposed revisions. The new facility is presently in the testing phase, and the mandatory reporting requirement has not yet started under this advisory.
Read GSTN Advisory
