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...

AI Summary

Understanding Self-Invoices Under GST Reverse Charge Mechanism: Recording as Purchases, Not Sales, in Financial Statements. A discussion on the accounting treatment of self-invoices under the Goods and Services Tax (GST) Reverse Charge Mechanism (RCM) is presented. A registered person queries how to record self-invoices in the balance sheet, particularly addressing if it should be shown as a debtor. Responses clarify that self-invoices are not sales but purchases from unregistered dealers. It is suggested to record entries by debiting RCM receivable and crediting RCM payable without treating it as a sale. Further clarification is provided on the responsibilities of service providers under RCM and the necessity of filing returns.