ACCOUNTING & TAXATION
Payment voucher & Invoice under RCM in CGST Act 2017
U/s 31(3) (e) & (f) of GST Act, 2017- says if you are paying tax under RCM (reverse charge mechanism) u/s 9(3) or (4) then you have to issue an Invoice u/s 31(3) (e) and payment voucher U/s 31(3)(f) –
Be conscious in case of payments made to Advocates, Passenger Vehicles, GTA, Arbitral Tribunal, Goods purchased from unregistered dealers (Ist Oct, 2018 to 31st Jan, 2019), U/s 9(4) then you have to Issue Invoice as well Payment Voucher – it has been noticed during cases of GST Scrutiny –
What is Payment Voucher?
There are cases where a registered person under GST is liable to pay tax under reverse charge mechanism. These would include circumstances where:
- A registered person makes supplies of such nature on which tax is payable under reverse charge mechanism
- Recipient receives supplies from an unregistered person
In such cases, the registered person liable to pay tax is required to issue an invoice for the goods or services received by him from the supplier.
Furthermore, such a registered person receiving supplies is also required to issue a Payment Voucher to the supplier at the time of making payment.
Thus, Payment Voucher is a type of GST invoice which is issued by a registered person liable to pay tax under Reverse Charge. Further, the payment invoice is an evidence of goods and services received by such a registered person from the supplier.
Payment Voucher Particulars
Following are the particulars to be mentioned in Payment Voucher:
- Name, Address and GSTIN of the supplier if registered
- Serial Number which is unique for the financial year
- Date of issue of Payment Voucher
- Name, Address and GSTIN of the recipient
- Description of goods and services
- Amount paid to the supplier
- GST Rate (Central Tax, State Tax, Integrated Tax, Union Territory Tax or CESS) Amount of GST payable with regards to taxable goods and services (Central Tax, State Tax, Integrated Tax, Union Territory Tax or CESS)
- Place of Supply together with the name of the State and its code in cases where inter-state supply is made.
- Signature or Digital Signature of the Supplier or his authorized representative.
Be careful if not issued yet then issue all since July 2017 till today.