CBIC prohibits issuance of Consolidated Invoices for RCM Supplies [Read Notification]
CBIC Bans Consolidated RCM Invoices and sets New Invoice Timeline by Rule 47A
CBIC – Invoices for RCM – Consolidated Invoices – Consolidated Invoices for RCM Supplies – Taxscan
CBIC – Invoices for RCM – Consolidated Invoices – Consolidated Invoices for RCM Supplies – Taxscan
The Central Board of Indirect Taxes and Customs ( CBIC ), through Notification No. 20/2024 – Central Tax dated October 8, 2024, has made significant amendments to the Central Goods and Services Tax ( CGST ) Rules, 2017. Notably, Rule 47A has been introduced, which takes effect from November 1, 2024, setting a time limit for issuing invoices in cases where the recipient is required to issue a tax invoice under the Reverse Charge Mechanism ( RCM ).
The CBIC, by omitting the second proviso following clause (s) of Rule 46, has introduced Rule 47A of the CGST Rules, effective from November 1, 2024, prescribing the time limit for issuance of a reverse charge mechanism (RCM) invoice to be raised by the recipient.
Rule 47A specifies that, notwithstanding anything in Rule 47, a registered person who is liable to pay tax under sections 9(3) or 9(4) of the CGST Act must issue an invoice within thirty days of receiving the supply. This new provision is intended to ensure timely compliance and avoid any confusion regarding invoicing requirements in RCM cases.
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The amendment also involves changes to Rule 46, effective from November 1, 2024. Specifically:
- The second proviso of Rule 46 has been omitted.
- In the third proviso, the phrasing has been updated from "Provided also that in the case of" to "Provided further that in the case of."
The changes prohibit the issuance of a consolidated invoice at the end of a month for RCM supplies whose aggregate value exceeds INR 5,000 per day. This brings clarity to the invoicing process for transactions under the reverse charge mechanism and ensures better regulation of monthly reporting.
Impact on Export Transactions
The amendments also impact export transactions, where an invoice for goods or services meant for export, or for supply to Special Economic Zones (SEZ), must carry specific endorsements.
The language of these endorsements has been adjusted for better clarity and consistency.
To Read the full text of the Notification CLICK HERE
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