RCM Self Invoice Worked Example: GTA Freight of ₹18,500
By Arshad Ansari, software engineer. About the editor
A full Reverse Charge self-invoice example for Goods Transport Agency freight — 5% GST, cash payment to government, GSTR-3B tables, and the Excel cells to fill.
Most RCM articles stop at "raise a self invoice". This one runs a real freight bill through the numbers so you can copy the same arithmetic into Excel.
Scenario: you are a registered business in one state. An unregistered GTA moves goods for you. The freight invoice (plain, no GSTIN) is ₹18,500. You and the GTA agree the 5% rate without ITC to the transporter (the common small-GTA case). You are the recipient: GST is yours under Reverse Charge.
This is a worked example for learning, not a ruling on your exact GTA notification. Confirm the rate (5% vs 12%) with your CA.
Step 1 — decide that a self invoice is required
The GTA has no GSTIN on the freight bill. You cannot take a tax invoice from them. Under Section 31(3)(f) you issue a self invoice to yourself. You will also need a payment voucher when you pay the ₹18,500 to the GTA (Section 31(3)(g)). Two documents, one supply.
Step 2 — the tax maths
Freight (taxable value) = ₹18,500
GST 5% = ₹925
Intra-state split:
| Component | Amount | |---|---| | Taxable value | 18,500.00 | | CGST 2.5% | 462.50 | | SGST 2.5% | 462.50 | | GST total | 925.00 | | Amount payable to GTA | 18,500.00 | | Amount payable to government (cash ledger) | 925.00 |
You do not deduct ₹925 from the GTA. You pay the GTA the freight they billed. You pay ₹925 to the government from the electronic cash ledger. Existing ITC cannot be used to discharge this RCM.
If the GTA were in another state, you would charge IGST 5% = ₹925 instead of the CGST/SGST split. Same cash outflow.
Step 3 — what goes on the self invoice
- Invoice series of your own: SI-014 (do not use your sales INV- series).
- Date: the date you received the service (the delivery date on the LR), not the date you opened Excel.
- Recipient block: your name, address, GSTIN (you are issuing it).
- Supplier block: GTA name and address, GSTIN blank.
- Reverse Charge: Yes.
- Line: "Road freight — GTA", HSN/SAC as applicable for GTA, qty 1, rate 18,500, GST 5%.
- Totals as in the table above.
Download the mapped file: self invoice format under GST (RCM).
Step 4 — GSTR-3B (same tax period)
- Table 3.1(d) — inward supplies liable to Reverse Charge: ₹18,500 taxable, ₹925 tax.
- Table 4A(3) — ITC on inward supplies under RCM: ₹925, once the tax is paid and the self invoice exists.
If you report 3.1(d) and forget 4A(3), you have paid tax and given up the credit. If you claim 4A(3) without paying in cash, the credit is the one that gets questioned.
Step 5 — payment voucher
When you NEFT the GTA ₹18,500, raise a payment voucher with the same supplier details, amount, and a reference to SI-014. Keep LR copy + self invoice + voucher + bank proof in one folder. That bundle is what a GST officer asks for, not a screenshot of the Excel total.
Mistakes this example is designed to prevent
- Charging 18% because "everything is 18%". GTA is often 5% in this structure.
- Putting the GTA's name in the Bill To box (that would look like you sold freight).
- Using INV- numbers so RCM disappears inside sales.
- Paying ₹925 by reducing ITC instead of cash ledger.
- Skipping the payment voucher because "the NEFT is enough". The NEFT is evidence of payment; the voucher is the prescribed document.
FAQ
Can I take ITC of the ₹925?
Yes, subject to the usual ITC conditions, after you pay the RCM in cash and hold the self invoice. Report it in Table 4A(3).
The GTA gave me a consolidated monthly bill. One self invoice or many?
One self invoice per bill/document you treat as the supply, with a clear date. Do not merge two months to "save" a number in the SI- series.