E-Invoicing Facility Introduced for Self-Invoices under RCM
GST Advisory has been issued for E-Invoicing Facility Introduced for Self-Invoices under RCM. GSTN has introduced a new facility for generating e-invoices for recipient-generated self-invoices under Reverse Charge Mechanism (RCM), covering specified purchases from unregistered suppliers and import of services.
This facility has been introduced following the recommendations of the 57th GST Council Meeting.
1. Introduction of Two New Supply Types
Two new supply types have been added to the existing e-invoicing system:
| Supply Type | Description |
| RCMDOM | Self-invoices issued by registered recipients for specified purchases from unregistered suppliers within India, where GST is payable under RCM |
| RCMIMP | Self-invoices issued by registered recipients for import of services from suppliers located outside India, where GST is payable under RCM. |
2. Applicability
The facility is intended for registered taxpayers having an Aggregate Annual Turnover (AATO) of ₹5 crore or more, subject to applicable GST provisions and notifications.The scope and effective date of the requirement will be governed by the relevant GST notifications.
3. How Will the Facility Work?
Eligible registered taxpayers will be able to report their RCM self-invoices through an authorised Invoice Registration Portal (IRP). While reporting, taxpayers must select the applicable supply type, RCMDOM or RCMIMP. Once the invoice details are successfully validated, an Invoice Reference Number (IRN) will be generated.
4. Facility Available for Testing
The new functionality has been made available in the sandbox (testing) environments of all six authorised IRPs.Taxpayers, GST Suvidha Providers (GSPs), Application Service Providers (ASPs), ERP providers and other integration partners can test the facility and prepare their systems.
5. Implementation Date and Further Guidelines
The facility is currently available only for testing and system integration.The date of actual implementation and commencement of the related e-invoicing reporting requirements will be announced separately. NIC IRP-1 will also issue detailed technical guidelines covering specifications, validations, validation codes and operational requirements.Further, GSTN and IRPs will organise a webinar to explain the new facility. Webinar details will be announced separately.
Taxpayers having a turnover of ₹5 crore or more should review their existing RCM self-invoicing process and prepare their accounting or ERP systems for the proposed changes.The new facility is currently in the testing stage, and the mandatory reporting requirement has not yet commenced under this advisory.
For further updates, taxpayers may visit the official e-invoice portal: https://einvoice.gst.gov.in/
