Reverse Charge Mechanism Impacts on GST Returns Filing

  • Blog|GST & Customs|
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  • By Taxmann
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  • Last Updated on 2 December, 2022

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As we know, that every registered person has to file form of outward supply by 10th of this month (GSTR-1) and to file form of inward supply by 15th of this month (GSTR-2).

 

So, Here’re the questions arises:]

 

1. Whether supplier who is making supply of goods and services under RCM will also have to do something in GSTR-1?
Naturally yes, If he is registered supplier otherwise how it shall be matched with GSTR-2 being filed by recipient.

2. Can GSTR-3 be filed without the payment by e-cash ledger?

No

3. Whether invoice details are necessary for RCM supply?

If supplier is not registered, then registered recipient shall have to issue self tax invoice.
Applicability of GST Return Forms/ Statements for Supplier and Recipient:
S.No. Supplier Recipient
Registered/Unregistered Form for supplier Registered/ Unregistered Form for recipient
1. Registered Form GSTR-1 Registered Form GSTR-2
2. Unregistered NA Registered Form GSTR -2
3. Form GSTR-1 Unregistered Unregistered NA
4. Unregistered NA Unregistered NA

There is no requirement to file return for unregistered person in this Act. Registered taxable person, who is making outward supply of notified goods/ services, where tax has been paid by recipient on reverse charge basis.

GSTR-1 FORM For Outward Supply – For Registered Supplier:

GSTIN/UIN Invoice Details Rate Taxable Value Amount Place of Supply (Name of State)
No. Date Value Integrated Tax Central Tax State/UT Tax Cess
1 2 3 4 5 6 7 8 9 10 11
4A. Supplies other than those (i) attracting reverse charge (ii) supplies made through e-commerce operator
4B. Supplies attracting tax on reverse charge basis
4C. Supplies made through e-commerce operator attracting TCS (operator wise, rate wise)
GSTIN of e-commerce operator

Similarly, the registered recipient is making inward supply of notified goods/services, where tax has been paid by recipient on reverse charge basis.

GSTR -2 FORM For Inward Supply – For Registered Recipient:

Inward supply on which tax is to be paid on reverse charge

GSTIN

Of

Supplier

 Invoice Details Rate Tax-able

value

 Amount of Tax Place

Of

Supply

(Name

Of

State)

 Whether input or

Input

Service invoice/Capital goods

(inc. plant

And

Machinery)/

Ineligible for

ITC

 Amount of ITC

available
No. Date Value Inte-grated

Tax

 Cen-tral

Tax

 State

/UT

Tax

 CESS Integrated

Tax

 Central

Tax

 State/UT

Tax

 Cess
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
4A. Inward supplies received from a registered supplier (attracting reverse charge)
4B. Inward supplies received from a unregistered supplier
4C. Import of service

In this case, unregistered taxable person is making outward supply of notified goods/services, where tax has been paid by recipient on reverse charge basis, but since he is unregistered he is not required to file returns under GST.

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