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In current environment there is a big ambiguity regarding when we are need to issue tax invoice  for the taxable supply received from  unregistered supplier specified in  u/s 9(3) and 9 (4) of CGST Act and  at what point of timing we are need to issue payment voucher.

There are two type of reverse charge scenarios provided in law. First is dependent on the nature of supply and/or nature of supplier. This scenario is covered by section 9 (3) of the CGST/ SGST (UTGST) Act and section 5 (3) of the IGST Act. Second scenario is covered by section 9 (4) of the CGST/SGST (UTGST) Act and section 5 (4) of the IGST Act where taxable supplies by any unregistered person to a registered person is covered.

Today we are providing bird eye view solution of this problem. For this purpose we will discuss our topic in to two main parts. Which are as under-

1. Issuance of tax by the recipient of supply

i. In case of taxable supply specified u/s 9(3) of CGST Act received from a registered supplier under GST Act. – A registered recieptant shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both thus in  scenario requirement to issue an tax invoice by the registered recieptant does not get attracted. In such a registered shall issue tax invoice.

ii. In case of taxable supply specified u/s 9(3) of CGST Act received from an unregistered supplier under GST Act. – A registered recieptant shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both  thus in such case registered recieptant shall issue tax invoice at the time on receipt of goods. The facility to issue a consolidated tax invoice at the end of months is not available in respect of such supplies.

iii. In case of taxable supply specified u/s 9(4) of CGST Act received from a registered supplier under GST Act. – Such scenario is not possible since section 9(4) is attracted when supply is received by the registered person from the unregistered person.

iv. In case of taxable supply specified u/s 9(4) of CGST Act received from an unregistered supplier under GST Act. – A registered recieptant shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both provided that a registered person may issue a consolidated invoice at the end of a month for supplies covered under sub-section (4) of section 9, the aggregate value of such supplies exceeds rupees five thousand in a day from any or all the suppliers:  thus in such case registered recieptant may issue tax invoice either at the time on receipt of goods or a consolidated tax invoice at the end of months. The facility to issue a consolidated tax invoice at the end of months is available in respect of such supplies.

2. Issuance of payment voucher by registered recipient on making payment to unregistered person.

i. In case where payment made in respected of supply specified u/s 9(3) received from registered supplier. – Such scenario is not possible since payment voucher requirement is get attracted only when payment is made to unregistered supplier in respect of taxable supply received by the registered person from the unregistered person.

ii. In case where payment made in respected of supply specified u/s 9(3) received from unregistered supplier- A registered recipient shall issue a payment voucher at the time of making payment to the supplier. It means we can issued a consolidate payment voucher for all tax invoices related to such unregistered supplier covered under such payment.

iii. In case where payment made in respected of supply specified u/s 9(4) received from registered supplier. – Such scenario is not possible since payment voucher requirement is get attracted only when payment is made to unregistered supplier in respect of taxable supply received by the registered person from the unregistered person.

iv. In case where payment made in respected of supply specified u/s 9(3) received from unregistered supplier. – A registered recipient shall issue a payment voucher at the time of making payment to the supplier. It means we can issued a consolidate payment voucher for all tax invoices related to such unregistered supplier covered under such payment.

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Location: new delhi, New Delhi, IN
Member Since: 01 Nov 2017 | Total Posts: 1

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3 responses to “Invoicing and payment voucher for RCM Supply under GST Regime”

  1. Siju Varghese says:

    Pls clear this doubt,
    Say, X is a Regstd Dealer, and A and B are Un-Regstd Dealers.
    On 15.07.17 X purchased for Rs.2,000 and 4,000 from A and B respectively.
    On 20.07.17 X purchased for Rs.1,000 and 3,000 from A and B respectively.
    And made payment to A and B Rs.3000 and 7000 each.
    I believe, here X is required to issue invoice only for Rs.2000 to A and for Rs.4000 to B.
    And also X is required to issue payment voucher only for Rs.2000 to A and 4000 to B.
    Is it correct?

    • amitpandav69@gmail.com says:

      Dear Siju,
      Before Notification No. 38/2017 – Central Tax (Rate) Dated 13th October, 2017,X has option either to issue 4 tax invoices or one consolidated tax invoice at the end of months and required to issue payment voucher at the time of making payment irrespective of timing of issuance of tax invoice
      After Notification No. 38/2017 – Central Tax (Rate) Dated 13th October, 2017- X is not required to issue tax invoice and payment voucher.

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