GSTN has introduced two new supply type codes to support e-invoicing for self-invoices generated by businesses under the Reverse Charge Mechanism (RCM). The change covers specified domestic purchases from unregistered suppliers and imports of services where the recipient is liable to pay GST.
The update follows a recommendation made at the 57th GST Council meeting and is intended for registered taxpayers with an aggregate annual turnover of ₹5 crore or more, subject to the applicable GST provisions and government notifications.
What Are the New Codes?
The two codes identify the type of transaction being reported:
- RCMDOM: For self-invoices covering specified domestic supplies received from unregistered suppliers under RCM.
- RCMIMP: For self-invoices covering imports of services from suppliers located outside India under RCM.
Eligible recipients will be able to report these self-invoices through authorised Invoice Registration Portals (IRPs) and obtain an Invoice Reference Number (IRN) after the invoice details pass validation.
What Should Businesses Do?
Businesses covered by the proposed changes should review their accounting and invoicing systems to check whether they can support the new codes. It is also a good time to review internal processes for identifying RCM transactions and generating self-invoices.
Current status: The new functionality is available for sandbox testing. The production rollout date and start of reporting requirements have not yet been announced.
Reference: e-invoice portal
