New Compliance Update: Rule 47A for Self-Invoicing under Reverse Charge Mechanism (RCM) – Effective 1st November 2024
Starting from 1st November 2024, a new compliance rule, Rule 47A, mandates a 30-day time limit for issuing self-invoices under the Reverse Charge Mechanism (RCM) for all GST-registered recipients.
What’s New?
Under the Finance Act 2024 (Part 2) and Notification 20/2024, all GST-registered recipients must now issue a self-invoice within 30 days from the date of receipt of goods or services on which RCM is applicable. This update aims to clarify timelines and promote timely tax compliance, addressing previous confusion due to the lack of a defined time limit.
Key Compliance Points
- New Time Limit: Issue self-invoices within 30 days for inward supplies under RCM.
- Effective Date: 1st November 2024.
- GSTR-1 Reporting: Self-invoices must be reported in Table 13 (Documents Issued During the Period) of GSTR-1 from November 2024 onwards as notified by the CBIC.
This update is essential for timely compliance, so mark your calendars and ensure that all RCM self-invoices are issued and reported as required starting this November!
