How to Create a Self Invoice Under GST (RCM) in Excel

If you are a registered business in India and you receive goods or services from an unregistered supplier, you cannot skip the paperwork by pretending the transaction did not happen. Under GST, you are the one who has to pay the tax — and you have to issue an invoice to yourself. This is called a self invoice under Reverse Charge Mechanism (RCM). Here is how it works and how to raise one in Excel.

What is a self invoice under GST?

A self invoice is a tax invoice raised by a registered recipient (the buyer) when they receive goods or services from an unregistered supplier and GST is payable under Reverse Charge. Because the supplier is not registered, they cannot issue a GST-compliant invoice — so Section 31(3)(f) of the CGST Act requires you, the recipient, to raise one on your own behalf.

Without a valid self invoice, the tax department can disallow the Input Tax Credit you claim on the RCM tax you pay. You lose the credit, and the RCM tax becomes a real cost.

When is a self invoice required?

You must raise a self invoice for any inward supply on which GST is payable under Reverse Charge, including:

• Purchases from an unregistered supplier of notified goods or services (Section 9(4))
• Goods Transport Agency (GTA) — freight charges paid to a transporter
• Legal services from an advocate or advocate firm
• Director's remuneration paid by a company
• Sponsorship services received by a body corporate or partnership firm
• Import of services from a supplier located outside India
• Any other supply notified by the government under Section 9(3)

Self invoice vs regular tax invoice — what changes

• The recipient issues the invoice, not the supplier.
• The supplier's GSTIN is blank (they are unregistered).
• The Reverse Charge field is marked Yes.
• The recipient pays GST in cash directly to the government — you cannot pay RCM tax by using existing Input Tax Credit.
• The RCM liability is reported in Table 3.1(d) of GSTR-3B, and the corresponding ITC is claimed in Table 4A(3) of the same return.

Self invoice vs payment voucher — you need both

This trips up a lot of people. Section 31(3)(f) requires the self invoice at the time you receive the goods or services. Section 31(3)(g) separately requires a payment voucher when you make the payment. So every RCM transaction produces two documents — one for the receipt, one for the payment. Keep both in your records.

Step-by-step: create a self invoice in Excel

1. Add your business details at the top — legal name, address, GSTIN, and state code. You are both the issuer and the recipient.
2. Number your self invoices in a separate series. Use something like SI-001, SI-002 so RCM invoices are easy to identify. Do not mix them into your regular sales invoice numbers.
3. Enter the invoice date — the date you received the goods or services.
4. Add the unregistered supplier's details — name, address, state and code. Leave GSTIN blank.
5. Record the reason for RCM — unregistered dealer, GTA, advocate, director's remuneration, and so on.
6. List each item — description, HSN/SAC, quantity, rate, and GST rate. The taxable value, CGST, SGST, and total should calculate automatically if you set up the formulas (or use a ready-made template).
7. Verify the Grand Total and note the amount in words.
8. Raise a separate Payment Voucher when you pay the supplier.
9. Report the RCM liability in Table 3.1(d) of GSTR-3B and claim ITC in Table 4A(3).

Common mistakes to avoid

• Using the same numbering series as regular sales invoices — keep RCM self invoices in their own SI-xxx series.
• Trying to pay RCM tax using Input Tax Credit — RCM tax must be paid in cash from the electronic cash ledger.
• Skipping the payment voucher — both self invoice and payment voucher are required.
• Applying the wrong GST rate — RCM uses the same rate as if the supplier were registered.
• Missing the ITC deadline — you must claim ITC of RCM tax by the September following the financial year, or the return of the following year, whichever is earlier.

Save time with a free template

Setting up the RCM self invoice from scratch — with the Reverse Charge flag, the unregistered supplier block, and all the tax formulas — takes time and there are places to slip up. Instead, download our free Self Invoice Under GST (RCM) Template. It has every required field, the Reverse Charge flag pre-set, live CGST + SGST formulas, and a built-in RCM compliance checklist.

If the supplier IS registered and issues their own invoice, you do not need a self invoice — you use their regular tax invoice. For that, our GST Invoice Template is what you want.

Summary

A self invoice under GST is mandatory whenever you receive goods or services from an unregistered supplier and pay GST under Reverse Charge. Number them in a separate SI-xxx series, mark Reverse Charge as Yes, leave the supplier's GSTIN blank, pay the tax in cash, report it in GSTR-3B Table 3.1(d), and claim ITC in the same return. And always raise a Payment Voucher alongside when you pay.

FAQ

What is a self invoice under GST?

A self invoice is a tax invoice raised by a registered recipient when they receive goods or services from an unregistered supplier where GST is payable under Reverse Charge Mechanism. It is mandatory under Section 31(3)(f) of the CGST Act because the unregistered supplier cannot issue a GST-compliant invoice.

Who has to issue a self invoice under RCM?

The registered recipient (the buyer) issues it. This applies to purchases from unregistered suppliers, GTA freight, advocate services, director's remuneration, sponsorship services, and import of services — any inward supply where GST is payable under Reverse Charge.

Can I claim Input Tax Credit on RCM tax paid via self invoice?

Yes. The RCM tax you pay in cash becomes ITC once the self invoice is raised and the tax is paid. Report the RCM liability in Table 3.1(d) of GSTR-3B and the ITC in Table 4A(3) of the same return. The ITC deadline is the September of the following financial year or the annual return filing date, whichever is earlier.

What is the difference between a self invoice and a payment voucher?

A self invoice is the tax document raised when you receive the goods or services — it is what supports your ITC claim. A payment voucher is a separate document raised when you make the payment to the supplier. Section 31(3)(g) makes the payment voucher mandatory for every RCM transaction, so you need both documents.

Do I need a separate invoice series for RCM self invoices?

Yes. Best practice is to maintain a distinct consecutive series (for example SI-001, SI-002) separate from your regular outward tax invoices. This makes RCM transactions easy to identify during return filing, reconciliation, and audits.