self invoice for rcm

[pawan singhal]

if Registered person made Self invoice for Rcm expenses. is it shown in debtor side in balance sheet. if no then how to do entry in books of account. if rp paid gst 18000 as reverse charge on pur of 100000. then he issued self invoice of rs.100000+gst 18000. Then how to show in books of account. sales+self invoice. then how to show in balance sheet...

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

This is not sales this is nothing but purchase of goods or services or both.

First make the due entry and then make the payment entry in the books of accounts.

[pawan singhal]

But sir as per rule in Reverse charge case party have to made self invoice. Then how to made self invoice. if we made self invoice it is entered in sales figure. and in bs debtorside reflecting..

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

Please forget about the supplier, when you raise the self invoice, in the customer column you have to mention your address only. Then where is the question of showing it as debtor ledger. It is nothing but purchases from unregistered dealer.

[Ganeshan Kalyani]

In my view a consolidated self invoice for a particular service/ goods received in a month can be prepared offline.

[pawan singhal]

sir problem how to accounted for self invoice in books of accounts..

[Vamsi Krishna]

No need of posting sale invoice.

While booking the unregistered/RCM entries you can debit the RCM Receivable-CGST/SGST/IGST ( Current Asset) and credit respective RCM Payable- CGST/SGST/IGST Payable ( Current Liabilities).

The movement you discharge the liability your GST payable account will get nullified & then adjust your RCM Receivable GL against any GST liability.

No need to book debtor in this case. This is sale only with respect to GST but not actual.

[VIJAYANT DUBEY]

SIR, IN CASE OF RCM WHAT IS THE RESPONSBILITY OF SERVICE PROVIDER IN RELATION OF RETURNS AND INNVOICE

[Kishan Barai]

Self invoice is not required, you can show RCM on GST 3B form

[VIJAYANT DUBEY]

SIR LET ME EXPLAIN MY QUERI WITH AN EXAMPLE

MR.A IS A LABOUR CONTRACTOR AND SUPPLY LABOUR TO L&T LTD. FOR A CIVIL CONSTRUCTION , HE IS REGISTERD UNDER GST AS CIVIL CONTERCTOR ,

L&T LTD. SAYS THAT I AM PAID YOUR GST LIBILITY

TO IS CASE ME MR A KI KOI LIBILITY NI BNTI FIR KYA MR A KO RETURN FILE KRNA HOGA ??

AI Summary

Reverse charge mechanism: treat recipient self invoices as purchases, not sales, and use RCM receivable/payable ledgers.
Reverse charge mechanism requires recipients to treat self invoices as purchases from unregistered suppliers, not sales or debtors. Book the purchase/expense and record the tax by debiting RCM Receivable (current asset) and crediting RCM Payable (current liability) for the relevant tax heads. On discharge of the tax liability clear RCM Payable and adjust RCM Receivable against GST liability. Consolidated offline self invoices may be used and RCM reporting in GSTR 3B can substitute separate self invoice in some views.