Self-Invoice Under GST: Compliance and Best Practices

What is self-invoice under GST?

Self-invoicing is relevant when a registered recipient is liable to pay GST under the reverse charge mechanism (RCM) on a supply received from a supplier who is unregistered on the date of receipt. The recipient issues the invoice and pays the applicable tax.

Reverse charge applies only to supplies and recipients covered by the law and the applicable notifications. The main CGST provisions are sections 9(3) and 9(4); for inter-State supplies, see the corresponding provisions in section 5 of the IGST Act.

Cases where a self-invoice is required

A registered recipient must issue an invoice when the recipient is liable to pay tax under section 9(3) or 9(4) of the CGST Act for a supply received from an unregistered supplier. This does not mean every purchase from an unregistered supplier is automatically subject to RCM.

Check whether the specific goods or services and recipient are covered by the relevant RCM notification.
Issue a payment voucher when making payment to the supplier, as required by section 31(3)(g).
Keep the invoice, payment voucher, supporting records and proof of tax payment together.

The earlier monthly consolidated-invoice concession for certain section 9(4) supplies was removed from Rule 46 with effect from 1 November 2024. Review the current rule and notification before relying on any exception.

Time limit for issuing a self-invoice and discharging tax

Under Rule 47A, inserted by Notification No. 20/2024–Central Tax, the recipient must issue the invoice within 30 days from receipt of the goods or services. This time limit has applied since 1 November 2024.

The time of supply determines when RCM tax becomes payable. Its calculation is governed separately by sections 12 and 13 of the CGST Act and differs between goods and services. Do not use the former 30-day/60-day supplier-invoice wording as the current self-invoice deadline; assess the facts and applicable provisions for the transaction.

Contents of a self-invoice

Section 31(3)(f) requires the recipient to issue the invoice. Rule 46 prescribes invoice particulars. As applicable to the transaction, include:

Supplier’s name and address, and the recipient’s name, address and GSTIN
A consecutive invoice number and date of issue
Description of the goods or services and the applicable HSN/SAC details
Quantity and unit, where relevant
Total value and taxable value after applicable discounts or abatement
Tax rate and amount, shown separately by tax type
Place of supply for inter-State supplies, and the delivery address when different
An indication that tax is payable on reverse charge, plus any other particulars required by Rule 46

Check the current Rule 46 requirements for the particular supply, including e-invoicing requirements where applicable.

ITC on self-invoices and restrictions

A self-invoice is one of the documents on which eligible input tax credit may be claimed. Credit is not automatic. Among other conditions, the recipient must receive the supply, hold the required document, report the particulars as prescribed, use the supply for business, and pay the RCM tax to the Government.

RCM tax is discharged in cash; eligible ITC may be availed after the tax has been paid and the statutory conditions are met.
The general time limit under section 16(4) is the 30th of November following the end of the financial year to which the invoice pertains, or filing of the relevant annual return, whichever is earlier, subject to statutory exceptions.
Blocked credits under section 17(5) and other eligibility restrictions continue to apply.

For the statutory document requirement, see the CBIC input tax credit rules. Confirm current return reporting and eligibility before claiming credit.

Consequences of not issuing a self-invoice

Failure to issue or retain the required invoice can create compliance issues and may put a related ITC claim at risk. Tax, interest or other consequences depend on the facts and the provisions that apply; there is no single outcome for every case. Reconcile RCM supplies regularly and correct omissions promptly with professional advice.

Accounting entries

The entries below are illustrative for an eligible intra-State purchase. Adapt the tax heads and accounts for the transaction, place of supply and applicable accounting policy.

Transaction	Debit (Dr.)	Credit (Cr.)
At the time of purchase / expense	Purchase / Expense Account	Supplier / Payable Account
At the time of creating RCM liability	RCM CGST Input Account RCM SGST Input Account	RCM CGST Payable Account RCM SGST Payable Account
At the time of payment of tax	RCM CGST Payable Account RCM SGST Payable Account	Bank Account
At the time of taking input tax credit	Input CGST Input SGST	RCM CGST Input Account RCM SGST Input Account

Reach us

We hope this guide is helpful. For questions or assistance with GST compliance, contact TaxVed.

This article is general information and is not individualized tax, legal or financial advice. Rules may change. Confirm your circumstances with an appropriate professional.