Payment Voucher under Reverse Charge Mechanism (RCM) in GST is a proof of transaction between taxpayer and unregistered supplier. Under GST, when a receiver procures taxable supply of goods and/or services from an unregistered person, the liability of GST payment falls on the receiver of goods and/or services. Such a mechanism, under GST, is termed as Reverse Charge Mechanism(RCM) . As per the Reverse Charge Mechanism(RCM) , the receiver (Taxpayer) holds the responsibility to generate invoices in respect of goods and/or services received. Additionally, the receiver should issue a payment voucher to the unregistered supplier. This is issued while making the payment for the given supplies.
Preparation of Payment Voucher under Reverse Charge Mechanism in GST
As per CGST Act, 2017 vide section 31(3)(g), the recipient (a registered taxpayer) is required to issue a payment voucher to the supplier during the payment of transactions(goods or services) on which reverse charge is applicable.
This payment voucher under RCM should consist of details as given below:
- Name, address of the supplier.
- A consecutive serial number not exceeding 16 characters of any combination which unique for the financial year.
- Date of issue of payment voucher.
- Name, address, and GSTIN of the recipient.
- Description of the goods and service on which tax is paid on reverse charge basis.
- Amount paid to the supplier.
- The rate and amount of tax charged under different heads CGST, SGST/UTGST or IGST and cess.
- Place of supply if the transaction is interstate along with the state name and code.
- A signature or Digital signature of the supplier or the authorized representative of the supplier
The need for Payment Voucher as per Reverse Charge Mechanism
Preparation of payment voucher is a mandatory action under Reverse Charge Mechanism (RCM). It acts as an evidence for the transaction taken place between the recipient and the supplier (a non-registered person). It acts as a proof of monetary transaction.
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With reference to the point no.9 of the RCM payment voucher, which is generated at recipients end. How can we apply digital sign (manual Sign) of the supplier or his representative. Can you share the ready smart form of payment voucher.
This signature of the supplier who is preparing this invoice. So for RCM transactions, as you are preparing this invoice hence you need to sign it.
I pay Fee to Advocate on 25/04/20 and Book RCM , Issued Invoice under RCM, I make the payment on 05/05/20, When Payment voucher is issued on 25/04/20 or 05/05/20, Please guide.
The recipient who is registered under GST has to issue a payment voucher for the transactions(goods or services) on which reverse charge is applicable to the supplier.
The receiver of goods/services needs to generate the payment voucher at the time of making the payment for the goods/service on which reverse charge is applicable.
Whether invoice issued under RCM to be shown anywhere in GSTR-1.
The supplier has to report invoice-wise Outward supplies subject to RCM in in table 4B of GSTR-1 (Outward supplies attracting tax on reverse charge basis).
Hello
As updated above, payment voucher is required to issue by purchaser (registered dealer under GST) of specified goods/ services, if it supplied by UNREGISTERED DEALER under GST (and not for the purchase of specified goods / services from registered vendor)
If you please confirm our understanding as above.