Self Invoice › When a self invoice is needed

When do you need a self invoice?

Normally the seller charges GST and pays it. Under reverse charge the buyer pays it instead. A self invoice is needed when that happens and the supplier is not registered, so there is no proper tax invoice.

The rule in one line

Section 31(3)(f) of the CGST Act: a registered person who is liable to pay tax under reverse charge on a supply from an unregistered supplier must issue an invoice for it. If the supplier is registered, the supplier's own invoice (marked reverse charge) is used instead, and no self invoice is needed.

Common cases

• Rent of shops, offices or godowns from an unregistered landlord to a registered business. This has been under reverse charge since October 2024; composition dealers were later taken out of it, so check whether it applies to you.
• Legal services from an advocate who is not registered, billed to a business.
• Goods transport agency (GTA) services, where the transporter has not chosen to charge GST itself and is not registered.
• Director's fees paid by a company to its directors, who are usually not registered.
• Other services or goods notified under section 9(3) or 9(4), such as some security services or specific goods. The list changes, so confirm with your accountant.

A quick check before you make one

1. Is the supply in the reverse charge list? If not, there is nothing to pay and no self invoice.
2. Is the supplier registered? If yes, ask for their invoice marked "reverse charge".
3. If the supplier is not registered: make the self invoice within 30 days of receiving the supply, and a payment voucher when you pay.

Example

A company pays its two non-executive directors ₹25,000 each as sitting fees in November. Director services are under reverse charge at 18%. The company makes one self invoice per director (or one listing both), pays ₹9,000 GST in cash, and claims it back as input tax credit.