GST: Self Invoicing Under RCM- Is it required?

In GST, Section 9 of the CGST Act 2017– related to levy and collection, There are 2 types of charges under GST

(1) Forward Charges
(2) Reverse Charges :- (a) under reverse charge, there are two type of payments i.e. Taxable supplies provided by register person to register person (b) depend upon the nature of supplies and nature of suppliers

As per the GST Act, assesse has to maintain, accounts book and record which list is prescribed as per Act, included “ SELF INVOICE”copies.

Background regarding the SELF INVOICE, when govt introduced the law, section 9 (4) is inserted at earlier stage which is deemed at later stage , the section related to pay RCM on purchases from unregistered dealer which value was more than Rs.5000/-, now this provisions has been substituted by the new section by Government.

Now points need to be considered is that, when as per holding the books and accounts upto 6 +1 years including the SELF INVOICE- Is it really require to prepare self-invoice under RCM payment in all cases ? What is use of keeping / preparing of “SELF INVOICE” from assessment point of view? What is use of self-invoice from accounts point of view? What will be the impact after the invoice?

There is no proper answer we receive as on date.. Only!!! Just for compliance!!!

As per my understanding the purpose to inserted this clause was “when register dealer purchased material from unregistered person without tax invoice, in that case, government intended to highlighted the unregistered vendor and way out was to prepare “ SELF INVOICE” that’s all, no any other purpose could be apart from this.

If we think practically, will be notice that, when you are making payment for GTA, SECURITY CHARGES etc. which are register supplier and assesse is paying the payment under RCM for these services DOES NOT REQUIRE TO PREPARE “SELF INVOICE”.

Team Edu-Visor