Self Invoice › Paying reverse charge GST

Paying GST under reverse charge

Making the self invoice is half the job. The other half is paying the tax on time and taking the credit back correctly.

When the tax becomes due

• Goods: the earliest of the date you receive them, the date you pay, or (if the supplier gave a bill) 30 days after it.
• Services: the earlier of the date you pay the supplier, or the date of your self invoice (section 13(3), from 1 November 2024). When a registered supplier bills you under reverse charge, it is the earlier of the date you pay or 60 days after their bill.

The tax is paid with the return for the month in which it became due.

How to pay it

1. Pay the reverse-charge GST in cash (through the electronic cash ledger). It cannot be paid from your input tax credit.
2. Show it in your GSTR-3B in the row for inward supplies liable to reverse charge.
3. In the same return you can take the tax as input tax credit, in the row for reverse charge credit, if the purchase is for your business and the other conditions are met.

Worked example

Transport charges of ₹20,000 paid to an unregistered transporter in November, under reverse charge at 5% (when the transporter does not charge GST).

Step	Amount
Self invoice SI/26-27/015: value	₹20,000
IGST 5% (transporter in another state)	₹1,000
Paid in cash with November GSTR-3B	₹1,000
Credit taken in the same return	₹1,000

The net cost of the tax is nil, but only if it is paid in cash first and the papers are in order.

Keep together

• The self invoice from this site.
• The payment voucher with the reverse charge tick from the voucher maker.
• The challan or proof of the GST paid.