invoicing for services covered under RCM

[jagadish nangathur chellappan]

Whether the registered service provider has to issue bill of supply or tax invoice for the services provided by him to a registered person, if the services provided is covered under RCM

AI Summary

Registered Service Providers Must Issue Tax Invoice for RCM Services Under GST, Not Bill of Supply (Rule 46) A query was raised regarding whether a registered service provider should issue a bill of supply or a tax invoice for services covered under the Reverse Charge Mechanism (RCM) in the context of Goods and Services Tax (GST). The response clarified that a tax invoice should be issued since the service is taxable and not exempt. The invoice should include a note stating, 'Tax is to be paid by the receiver of service under RCM.' According to Rule 49 of the CGST Rules, 2017, a bill of supply is for exempted services, while Rule 46 requires a tax invoice for taxable services.