GSTN enhances e-Invoicing system to facilitate the reporting of recipient generated self-invoices under the Reverse Charge Mechanism (RCM)

Goods and Services Tax Network (GSTN) has introduced an e-Invoicing Facility for Recipient Generated Self Invoices under Reverse Charge Mechanism for Domestic Supplies from Unregistered Persons (RCMDOM) and Import of Services (RCMIMP). This facility will be applicable to registered taxpayers having an Aggregate Annual Turnover (AATO) of ₹5 crore and above (i.e. the current eligibility threshold for e-Invoicing).

Key highlights are as follows:

1. E-invoicing system has been enhanced to facilitate the reporting of recipient generated self-invoices under the Reverse Charge Mechanism (RCM).
2. Introduction of two new supply types namely RCMDOM (Reverse Charge Mechanism on Domestic) and RCMIMP (Reverse Charge Mechanism on Import of Services) to enable reporting of self-invoices for specified domestic supplies and import of services from suppliers located outside India.
3. For reporting self-invoices issued in respect of specified RCM transactions taxpayers would be required to select the appropriate supply type code, RCMDOM or RCMIMP, while reporting the self-invoice through an authorised IRP.
4. The functionality is presently available for sandbox testing and integration. The date of production rollout and commencement of the associated reporting requirements would be communicated in due time.

Source: GSTN