Template Overview
This is a free RCM tax invoice format under GST in Excel. A registered supplier issues it when the recipient has to pay the GST. Rule 46 requires the invoice to state whether tax is payable on reverse charge. On this sheet that flag is already Yes, and GST is not added to the amount the supplier collects.
People also look for this file as a GST RCM invoice format, an RCM GST invoice format, or an RCM invoice sample. It is not the self invoice. A self invoice is issued by the recipient, and only when the supplier is not registered (Section 31(3)(f)). It is also not the RCM bill format, which is the GTA layout: consignment note, vehicle number, and a 5% freight sample.
Worked sample: firm of advocates, ₹40,000
Notification 13/2017-Central Tax (Rate) puts legal services supplied by a firm of advocates to a business entity on reverse charge. The sample line is intra-state, both parties in the same state, SAC 998212:
| | Amount | |---|---| | Taxable professional fee (paid to the firm) | ₹40,000.00 | | CGST 9% | ₹3,600.00 | | SGST 9% | ₹3,600.00 | | GST the recipient pays the government | ₹7,200.00 |
The amount payable to the firm is ₹40,000. The ₹7,200 is not added to the NEFT. The recipient pays that GST in cash from the electronic cash ledger.
Set Supply type (cell H6) to Inter when the recipient's GSTIN is in another state. The same ₹40,000 then shows IGST ₹7,200, and CGST and SGST become 0. Place of supply for a service to a registered person is the recipient's location (Section 12(2) of the IGST Act).
Type a different GST % if your notified supply is not legal services at 18%. Do not hard-code 9%. On an intra-state line, CGST and SGST are each half of the rate you type.
Who should issue this invoice
- A firm of advocates billing legal services to a business entity that is not covered by the exemption in Notification 12/2017 (entry 45).
- Another registered supplier of a notified reverse-charge service who must mention "tax is payable on reverse charge" and must not collect the tax, other than a GTA using the transport bill.
Do not use it when the client is not a business entity, or when that business entity's turnover in the preceding financial year is still inside the limit that exempts it from GST registration. That legal service is exempt, so there is no reverse-charge tax to show. Do not use it when the supplier has no GSTIN. The recipient then issues the self invoice within 30 days of receipt (Rule 47A) and a payment voucher when they pay.
What each side reports
- Supplier: report the invoice in GSTR-1 as a B2B invoice attracting reverse charge (Table 4B). Do not include this GST as tax you collected.
- Recipient: report the taxable value and tax in GSTR-3B Table 3.1(d). Pay it in cash. Claim eligible ITC in Table 4(A)(3) if the credit is not blocked. Section 31(3)(g) still requires a payment voucher when you pay the firm.
Guide: How to create an RCM tax invoice format under GST in Excel.
Features
- Reverse Charge pre-set to Yes, as Rule 46 requires on the tax invoice
- Supply type switch: Intra splits CGST and SGST, Inter charges IGST
- Amount payable to the supplier excludes GST
- Worked line: ₹40,000 at 18% = CGST ₹3,600 + SGST ₹3,600
- SAC 998212 sample for legal services by a firm of advocates
- Works in Excel, Google Sheets, and LibreOffice
Instructions
- Download the file and open it in Excel, Google Sheets, or LibreOffice.
- Fill in the supplier's legal name, address, GSTIN, and state. You are the issuer, and you must be registered.
- Assign an invoice number in its own series (16 characters or fewer) and enter the invoice date.
- Set Supply type to Intra if the recipient's state matches yours, or Inter if it does not. Place of supply for a service to a registered person is their state.
- Fill in the recipient's GSTIN. Enter description, SAC, quantity, rate, and GST %. Taxable value and the tax columns fill in.
- Collect only the 'Amount payable to supplier' total. Do not add CGST, SGST, or IGST to the NEFT.
- Sign the invoice. The recipient pays the GST to the government and keeps this invoice for GSTR-3B.
FAQ
What is an RCM tax invoice format under GST?
It is the tax invoice a registered supplier issues when the recipient must pay the GST under reverse charge. Rule 46 requires it to state that tax is payable on reverse charge. The supplier collects only the taxable value. The recipient pays CGST and SGST, or IGST, to the government.
Is this the same as a self invoice or an RCM bill?
No. The supplier issues this tax invoice when the supplier is registered. The recipient issues a self invoice under Section 31(3)(f) only when the supplier is not registered. The RCM bill format on this site is the GTA transport layout, with a consignment note and a 5% freight sample. Do not create both a self invoice and this tax invoice for the same supply.
Should the advocate firm add 18% GST to the fee?
No. On this reverse-charge invoice the professional fee (for example ₹40,000) is what the firm collects. CGST ₹3,600 and SGST ₹3,600 are the recipient's payment to the government, not part of the firm's total. For an inter-state recipient, set Supply type to Inter. The sheet then shows IGST ₹7,200 and leaves CGST and SGST at zero.
Who reports an RCM tax invoice in GSTR-1?
The supplier reports it in GSTR-1 Table 4B (B2B invoices attracting reverse charge) and does not treat the GST as tax collected. The recipient reports it in GSTR-3B Table 3.1(d), pays the tax in cash, and claims eligible ITC in Table 4(A)(3).
When is legal services reverse charge the wrong treatment?
Notification 12/2017 (entry 45) exempts legal services to a person who is not a business entity, and to a business entity whose turnover in the preceding financial year is within the GST registration exemption limit. Do not show reverse-charge GST on an exempt supply. If the advocate or firm has no GSTIN, use a self invoice instead of this file.