How to Create an RCM Tax Invoice Format Under GST in Excel

An RCM tax invoice format under GST is the tax invoice a registered supplier issues when the recipient pays the GST. It is not a self invoice, and it is not the GTA consignment bill. This guide fills one in Excel, with a firm-of-advocates sample you can check by hand: fee ₹40,000, CGST ₹3,600, SGST ₹3,600, and ₹40,000 collected. Download the RCM tax invoice format and follow the cells.

Which document you actually need

Three reverse-charge files get mixed up because the searches overlap.

• This tax invoice. The supplier is registered and the supply is notified for reverse charge. The supplier issues it. Rule 46 says it must state whether tax is payable on reverse charge. The supplier does not collect the tax.
• Self invoice. The supplier is not registered. Section 31(3)(f) tells the recipient to issue the invoice. Rule 47A gives 30 days from receipt. Do not also issue this tax invoice.
• RCM bill format. Same legal idea as this invoice, laid out for a Goods Transport Agency: consignment note, vehicle number, SAC 996511, and a 5% freight sample of ₹18,500. Use that file for GTA. Use this one for other notified services.

Notification 13/2017-Central Tax (Rate) is the services list. One entry is legal services supplied by a firm of advocates to a business entity in the taxable territory. The business entity pays the GST. The sample on the sheet is that case.

Notification 12/2017 (entry 45) exempts legal services to someone who is not a business entity, and to a business entity whose turnover in the preceding financial year is still inside the GST registration exemption limit. An exempt supply does not go on this invoice. There is no reverse-charge tax to calculate.

Worked example: ₹40,000, same state

Both the firm and the client are in Maharashtra, so the place of supply is Maharashtra (Section 12(2) of the IGST Act — location of the registered recipient) and the tax splits.

SAC on the line: 998212 (legal advisory and representation services concerning fields of law other than criminal law). Legal services under heading 9982 are taxed at 18%.

| Cell | Value | |---|---| | Quantity | 1 | | Rate | 40,000 | | Taxable value | 40,000 | | GST rate | 18% | | Supply type | Intra | | CGST 9% | 3,600 | | SGST 9% | 3,600 | | IGST | 0 | | Paid to the firm | 40,000 | | Paid to the government by the recipient | 7,200 |

Check the half-rate before you trust the sheet: 40,000 × 0.09 = 3,600, and 3,600 + 3,600 = 7,200. If CGST alone shows 7,200, the formula used the full 18% instead of half.

The NEFT to the firm is ₹40,000. The ₹7,200 is a separate cash-ledger payment. Adding 18% and paying ₹47,200 to the firm is the mistake this layout is built to prevent. The total labelled "Amount payable to supplier" is a SUM of the taxable column only.

If the client's GSTIN were Karnataka, set Supply type to Inter. The same fee becomes IGST at 18% (₹7,200). CGST and SGST become 0, even if the advocates sit in Mumbai. Place of supply follows the registered recipient, not the firm's office.

What to type, in order

1. Supplier block. Legal name, address, GSTIN, and state of the firm. The firm signs this invoice.
2. Invoice number. Unique for the financial year, not more than 16 characters. Keep it off the client's sales INV- series and off their SI- self-invoice series. RCM-INV-001 is fine.
3. Invoice date. The date the firm issues the invoice.
4. Supply type. Intra or Inter. That one cell (H6) decides whether the row splits the rate or charges IGST. Do not edit the tax formulas.
5. Recipient GSTIN and place of supply. Copy the state from the GSTIN.
6. One line. Description, SAC 998212, quantity, rate, GST %. Leave spare rows empty. The SUM ignores them.
7. Declaration. "Tax is payable on reverse charge basis by the recipient." It is already on the sheet. Do not delete it to shorten the PDF.
8. Amount in words for the supplier total (₹40,000), then sign. Save a PDF before you send it so the formulas cannot be edited in transit.

What each side files

The firm reports the invoice in GSTR-1 Table 4B (B2B invoices attracting reverse charge). That GST is not output tax the firm collected, so the firm does not pay it in GSTR-3B as a forward-charge liability.

The recipient reports taxable value and tax in GSTR-3B Table 3.1(d), pays ₹7,200 in cash, and claims eligible ITC in Table 4(A)(3) of the same return if the credit is not blocked. Input tax credit cannot be used to pay the reverse-charge liability itself.

The time of supply for a reverse-charge service is the earlier of the date of payment and the day after 60 days from the invoice date (Section 13(3)). Paying the firm in the same month as the invoice keeps the tax in that month's GSTR-3B.

Section 31(3)(g) still requires the recipient to issue a payment voucher at the time of payment. The RCM payment voucher was laid out for an unregistered payee, so type the firm's GSTIN into that cell.

When this invoice is the wrong file

• The advocate or firm has no GSTIN. Use the self invoice.
• The recipient is an individual, or a business still inside the registration exemption. The legal service is exempt. Do not show 18%.
• The supply is GTA freight. Use the RCM bill, and do not copy this 18% sample onto a transport line.
• You are a registered seller making a normal taxable sale. Use the GST invoice template. On that file the buyer pays you the tax.

The 18% on the sample is the rate for this kind of legal service. The GST % cell is editable. If a notification for your supply says a different rate, type that rate. Half of whatever you type is what keeps a 5% or 12% intra-state line correct.

FAQ

Can the client also issue a self invoice for these legal fees?

No. One tax document. The firm's RCM tax invoice is that document, because the firm is registered. A self invoice on top would double-count the supply in GSTR-3B.

Does the firm need its own GSTIN to issue this invoice?

Yes. This is the supplier's tax invoice. An unregistered advocate does not issue a Rule 46 tax invoice. The business that received the service self-invoices, if the supply is taxable.

Where does the ₹7,200 go?

To the government, from the recipient's electronic cash ledger. It does not go to the firm, and it is not discharged by using old ITC.

Is an Excel RCM tax invoice valid?

Yes, if the Rule 46 particulars are on it, including whether tax is payable on reverse charge. GST law does not require a particular software.

What if I only wanted an RCM invoice sample to copy?

The filled line is the sample: SAC 998212, ₹40,000, 18%, intra-state split of ₹3,600 and ₹3,600, supplier total ₹40,000. Change the names and the fee. Leave the tax formulas alone.