Goods and Services Tax

Introduction of e-Invoicing Facility for Recipient Generated Self Invoices under Reverse Charge Mechanism for Domestic Supplies from Unregistered Persons (RCMDOM) and Import of Services (RCMIMP)
GST
Dated:- 16-10-2026

Dear Taxpayers,

The GST Council, in its 57th meeting has recommended extending e-invoicing to domestic supplies received from an unregistered person where the tax is payable under reverse charge mechanism, as well as to the import of services, for taxpayers having aggregate annual turnover of Rs. 5 crore and above. Accordingly, the e-Invoicing system is being enhanced to facilitate the reporting of recipient generated self-invoices under the Reverse Charge Mechanism (RCM). Accordingly, two new supply types, namely RCMDOM (Reverse Charge Mechanism on Domestic) and RCMIMP (Reverse Charge Mechanism on Import of Services), are being introduced to enable reporting of self-invoices for specified domestic supplies received from unregistered persons under RCM and

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levant statutory provisions and notifications to be issued by the government in this regard. The scope, applicability and effective date of the requirement would be governed by the applicable notifications and provisions of GST law.

3. Reporting of Recipient Generated Self-Invoices

Under the existing B2B e-Invoice framework, invoices are ordinarily reported by registered suppliers. The proposed enhancement would extend the facility to eligible and active registered recipients for reporting self-invoices issued in respect of specified RCM transactions. For such transactions, taxpayers would be required to select the appropriate supply type code, RCMDOM or RCMIMP, while reporting the self-invoice through an authorised IRP. Upon successful submission and validation of the prescribed invoice particulars, an Invoice Reference Number (IRN) would be generated in accordance with the applicable e-Invoice specifications.

4. Implementation and Availability in Sandbox

The necessary sys

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ith the technical specifications and release note issued by NIC IRP-1.The functionality is presently available for sandbox testing and integration. The date of production rollout and commencement of the associated reporting requirements would be communicated in due time.

5. Further Guidelines, Webinar and Preparatory Activities

NIC IRP-1 would issue a detailed release note covering the technical specifications, business validations, validation codes and other operational requirements relating to RCMDOM and RCMIMP. Taxpayers and integration partners are advised to refer to the release note for detailed implementation requirements.

GSTN along with IRPs would also organise a webinar to explain the new functionality and address relevant implementation aspects. The details of the webinar would be communicated separately.

Taxpayers, GSPs, ASPs, ERPs and other stakeholders are requested to sensitise their wider ecosystem partners about these changes and undertake the necessary sys

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Deemed withdrawal of GST best-judgment assessments follows delayed GSTR-3B filing when the requisite late fee is paid.
Case-Laws
GST
Section 62(2) of the GST law provides for deemed withdrawal of a best-judgment assessment when the requisite GSTR-3B return is filed. Delayed filing does not prevent that statutory benefit where the applicable late fee is also paid, following the amendment permitting condonation of delay in return filing. Once the assessment is deemed withdrawn, the tax demand and related dues under that assessment cannot be recovered, and recovery proceedings cannot be initiated or continued on its basis.
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Statutory GST liability prevails over works-contract terms, leaving VAT-to-GST reimbursement claims for resolution against employers.
Case-Laws
GST
GST liability on works contracts remains governed exclusively by the applicable GST enactments, notwithstanding contractual arrangements between contractors and employers. Claims for reimbursement of the incremental tax burden arising from the VAT-to-GST transition are contractual claims against the concerned employer, rather than grounds to modify statutory assessment, recovery, return-filing, interest, or penalty processes. Challenges to assessment orders and statutory representations concerning recovery must proceed through available statutory remedies.
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GST Payment Timing: Cash Ledger credit ends interest accrual, while late post-notice payment attracts mandatory penalty.
Case-Laws
GST
Tax paid before adjudication cannot be recovered again through a demand where the Government had already received the short-paid amount; the tax demand was therefore set aside. For delayed GST payment, interest accrues only until cash is credited to the Government account and Electronic Cash Ledger through Form GST PMT-06, not until the later ledger debit on return filing. Interest paid on a residual tax shortfall cannot be set off against separate interest liabilities for delayed monthly payments. Penalty immunity applies only where tax and interest are paid within thirty days of the show-cause notice; payment after that period attracts the prescribed minimum penalty.
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Retrospective GST interest liability confines delayed-payment interest to cash-ledger tax, requiring reassessment of credit-ledger interest refunds.
Case-Laws
GST
Retrospective operation of the substituted proviso to section 50(1) confines GST interest on delayed tax payment to the tax discharged through the electronic cash ledger, excluding the component paid by utilising input tax credit. Refund claims for interest paid on the credit-ledger component require verification of statutory conditions, payment and eligible quantum. Refund limitation cannot be introduced as a decisive appellate ground without notice and an effective opportunity to address the relevant date, computation and applicable exclusions. Limitation must be recomputed under section 54 after applying the notified exclusion of the specified COVID-19 period, followed by a hearing and consequential determination.
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ISD-distributed input tax credit refunds remain available to SEZ units for their own zero-rated exports, subject to verification.
Case-Laws
GST
SEZ units may seek refund of eligible unutilised input tax credit distributed through an Input Service Distributor where the credit is attributable to their own zero-rated exports without payment of integrated tax. The supplier-specific procedure for direct SEZ supplies does not automatically bar such claims. Refund eligibility remains subject to verification, statutory conditions and quantification. A proposed exclusion for alleged prior supplier refund requires cogent documentary evidence, disclosure to the claimant and a reasonable opportunity to respond; supplier applications or unexplained back-office records alone do not establish double refund.
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Anti-profiteering obligations apply to regulated Rail Neer transfer prices, requiring GST benefits to reach recipients despite price controls.
Case-Laws
GST
Section 171 requires suppliers of Rail Neer to pass GST rate-reduction benefits through commensurate reductions in transfer prices, even where maximum retail prices are railway-regulated and supplies are subsidised or complimentary. No exclusion applies to public-sector or governmental suppliers. Profiteering may be computed through a fair, case-specific comparison between pre-GST average base prices and post-GST transaction prices; no uniform formula or advance disclosure of the exact methodology is required where the supplier participated in the investigation. Investigation duration depends on circumstances rather than a one-year limit. Interest applies only prospectively from the interest provision's effective date, while penalty for continuing contraventions remains subject to statutory waiver upon timely deposit.
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Bill-to/Ship-to E-Way Bills permit direct dispatch where the person causing movement generates compliant transport documentation.
Case-Laws
GST
Bill-to/Ship-to transactions permit an intermediate purchaser to instruct the original supplier to dispatch goods directly to the ultimate recipient, provided the supplies are genuine, documented and properly accounted for. Rule 138(2) allows the consignor or consignee causing movement to generate the e-way bill. Where e-invoices and e-way bills are generated before interception by the party arranging transport, the supplier's separate non-generation does not justify detention of goods. Compliance with these requirements makes detention and penalty for e-way bill non-compliance unsustainable.
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Road restoration charges constitute taxable Government services, triggering reverse charge and defeating claims of governmental-function exemption.
Case-Laws
GST
Road restoration charges paid by a business entity for permission to cut public roads for a pipeline constitute consideration for a taxable restoration service, not compensatory or liquidated damages. Targeted, request-driven restoration for commercial operations does not qualify for non-supply treatment or exemption available for governmental road functions, which concern community-wide maintenance. Where Government supplies that taxable service to a registered business entity, reverse charge applies to the recipient absent proof of tax paid under forward charge; revenue-neutrality claims do not override that liability. Electronically conducted GST adjudication remains valid where portal records authenticate the proceedings and the notice gives sufficient grounds without prejudice, despite no physical DIN.
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Cumulative GST appellate pre-deposit permits prior deposits against the same demand, eliminating duplicate payment where statutory thresholds are met.
Case-Laws
GST
GST appellate pre-deposit is cumulative, calculated against the tax still disputed in the Tribunal appeal, rather than requiring a separate fresh payment after the first appeal. A deposit already held against the same demand may be apportioned between both appellate stages, including amounts paid through FORM GST DRC-03, because pre-deposit forms part of disputed tax rather than an independent levy. Requiring refund and redeposit of the same sum would be anomalous. Deposits connected with separate proceedings cannot be double counted. Where the existing deposit meets the aggregate requirement, it may be appropriated and electronically mapped to the disputed demand, with no further deposit required.
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GST assessment without verified turnover required fresh manual rectification review, while coercive recovery remained barred pending reconsideration.
Case-Laws
GST
GST assessment was unsustainable where actual turnover had not been ascertained, an adjournment request was declined, and the taxpayer could not electronically file rectification because departmental creation of a temporary identification prevented portal access. Although personal-hearing notices were issued, the assessment followed soon after the final reminder, and no other works during the relevant period were asserted. The High Court directed the assessing authority to consider a fresh manual rectification application after hearing the taxpayer and barred coercive recovery until that decision.
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Statutory limitation for GST detention penalties makes delayed orders jurisdictionally invalid despite an available appellate remedy.
Case-Laws
GST
Section 129(3) requires a detention penalty order to be passed within seven days of service of the notice issued after detention. Penalty orders concerning vehicles carrying scrap, made after that mandatory period, were barred by limitation and without jurisdiction. Pending proceedings concerning the supplier's registration did not suspend the statutory period because no competent court had stayed the detention proceedings. The availability of a statutory appeal did not preclude writ jurisdiction against jurisdictionally invalid orders. The time-barred orders were quashed, the detained vehicles were directed to be released without payment of alleged duty, and otherwise permissible proceedings against the supplier or recipient remained unaffected.
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Retrospective input tax credit regularisation protects delayed returns filed by the prescribed cut-off from denial solely for lateness.
Case-Laws
GST
Input tax credit for invoices from the covered period is regularised under section 16(5), retrospectively effective from 1 July 2017, where the relevant returns were filed by 30 November 2021. Credit relating to July 2018 through March 2020, including financial year 2019-20 invoices, cannot be denied solely because returns were filed after the original deadline. Orders denying the credit were quashed and remitted for re-adjudication under section 16(5) after hearing, including reconsideration of Electronic Credit Ledger blocking. Further coercive action was restrained pending re-adjudication.
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Nil valuation of unbilled head office services prevents GST demands based on proportionate allocation of common expenditure.
Case-Laws
GST
Head office services supplied to separately registered branches or depots constitute supplies between distinct persons even without consideration. Where no invoices are issued for those services, CBIC clarifications and Rule 28 require their value to be treated as nil; common expenditure cannot instead be proportionately allocated to create taxable value. Extended limitation under Section 74 requires facts establishing fraud, wilful misstatement or suppression with intent to evade tax, rather than mechanical allegations. Recorded expenditure and recipient eligibility for input tax credit may demonstrate revenue neutrality and, without more, do not establish those conditions.
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Anti-profiteering obligations survive business demerger, complaint withdrawal, and customized supply arrangements where rate-reduction benefits are not passed on.
Case-Laws
GST
Anti-profiteering liability following a GST rate reduction may apply despite a business demerger and a post-reduction registration where transactional evidence establishes the supplier's nexus to affected supplies. Investigation may extend beyond the original complaint and continue after its withdrawal because the regime serves consumer welfare. For customised lump-sum supplies, invoice-wise base-price comparison is permissible if rational, evidence-based and reconciled; the computation was accepted. Wilful retention need not be proved, although non-passing of the benefit must be established. The supplier was found to have breached the pass-through obligation and was subject to restitution and deposit directions; no penalty applied because the penal provision operated only prospectively.
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GST penalty provisions for fraudulent invoices remain under consideration despite an available statutory appeal mechanism.
Case-Laws
GST
The scope of “any person” in GST penalty provisions for fraudulent invoice and input tax credit transactions, their prospective operation, and the availability of writ jurisdiction despite a statutory appeal were identified as questions apparently covered by earlier High Court rulings. The matter was listed for the CGST Department to examine those rulings and state whether it accepts or challenges them.
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Mandatory GST appeal pre-deposit raises conflict with IBC liquidation priorities when estate funds finance a statutory appeal.
Case-Laws
GST
The interaction between the mandatory pre-deposit for a GST appeal and the IBC liquidation framework raises whether a corporate debtor in liquidation may be excused from making that deposit. The issue is whether using liquidation-estate funds for the pre-deposit conflicts with the statutory distribution waterfall governing creditors' claims. The High Court sought assistance on whether liquidation priorities affect the mandatory pre-deposit requirement for filing a GST appeal.
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Omitted refund rule cannot sustain pending export refund proceedings without an express saving provision after its omission.
Case-Laws
GST
Omission of Rule 96(10) without a saving or sunset clause prevented its continued application to pending export refund proceedings. Proceedings initiated under an omitted rule can continue only where an express saving provision or statutory legal fiction preserves them. Applying this principle, the High Court treated the Supreme Court precedent as applicable and quashed the adjudication notices and orders founded on Rule 96(10), allowing the writ petitions.
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Intermediary service classification excludes subcontractors providing contracted marketing and support services on their own account.
Case-Laws
GST
Intermediary-service classification turns on whether a supplier arranges or facilitates an identifiable main supply between other parties; a subcontractor supplying contracted services on its own account is excluded. Marketing, promotion, business-support and IT-enabled services provided independently on a principal-to-principal basis, without authority to bind the foreign principal or participate in third-party arrangements, qualify as export of services rather than intermediary services, supporting refund of unutilised input tax credit. Section 107(11) bars the first appellate authority from effectively remanding a refund matter after annulling the original order, while preserving the Tribunal's separate remand power.
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Monetary-limit compliance requires Revenue to prove a recognised exception; bare Commissioner approval cannot sustain a departmental penalty appeal.
Case-Laws
GST
Departmental appeals disputing only a penalty are governed by the disputed penalty for monetary-limit purposes. Where the amount is below the prescribed limit, the Revenue must specifically identify and establish a recognised exception. Reliance on a residual exception requires material that the Commissioner considered the particular matter and recorded the requisite opinion; bare approval or authorisation to appeal is insufficient. Maintainability must be determined before merits, resulting in threshold dismissal where policy compliance is not shown.
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Monetary-limit compliance in departmental GST appeals requires Revenue to prove a recognised exception beyond Commissioner authorisation.
Case-Laws
GST
Departmental GST appeals involving disputed tax below the prescribed monetary limit require the Revenue to specifically plead and establish a recognised exception to the litigation-control policy. The threshold is calculated on aggregate disputed tax, excluding interest and penalty. Mere Commissioner authorisation does not establish the residual exception; the record must show a case-specific exercise of that power and its supporting basis. Where no applicable exception is proved, the appeal is not maintainable, may be dismissed at the threshold, and the underlying tax merits remain unexamined.
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Road restoration charges constitute taxable services when requested for commercial pipeline activity, requiring reverse-charge GST from the business recipient.
Case-Laws
GST
Road restoration charges paid by a business entity for PWD-authorised road cutting and request-driven restoration constitute consideration for a taxable service because payment is directly linked to identified work and bilateral reciprocity. Such work is not a non-supply or exempt public-function service merely because routine road maintenance is governmental; it is performed for the entity's commercial activity. Government services supplied to registered business entities attract reverse charge where forward-charge payment is unproven, so refund of GST paid under reverse charge is unavailable. Electronic GST proceedings authenticated through the portal remain valid without a physical DIN where notice particulars enable a meaningful response and no prejudice arises.
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Road restoration charges are taxable services, leaving commercial recipients liable under reverse charge without exemption or refund.
Case-Laws
GST
Road restoration charges paid for request-driven repair after excavation for commercial pipeline laying constitute consideration for a taxable service rather than compensatory damages. Routine public-road maintenance differs from targeted restoration supplied to a business entity; consequently, non-supply treatment and the governmental-services exemption do not apply, and tax under reverse charge remains payable. Prior refund sanctions in other jurisdictions and unsubstantiated double-taxation claims do not displace that mechanism. Electronic GST proceedings remain valid where portal records authenticate the application, notice, replies and orders, and the notice gave adequate factual and legal particulars without prejudice despite no physical DIN. The refund rejection and reverse-charge payment were sustained.
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Road restoration charges for commercial pipeline works attract reverse-charge GST, while portal-issued proceedings remain valid without physical DIN.
Case-Laws
GST
Road restoration charges paid for restoring public roads excavated for a commercial gas pipeline constitute consideration for a taxable service because the payment directly corresponds to requested restoration work. Targeted, fee-based restoration for a business entity differs from routine public road maintenance and does not qualify as non-supply or for public-function exemption treatment. GST is payable by the recipient under reverse charge, resulting in rejection of the refund claim. Electronically issued GST notices and orders authenticated through the official portal remain valid without a physical DIN where they clearly state the factual and legal basis and cause no prejudice.
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Road restoration charges for business pipeline work attract reverse-charge GST, while portal-authenticated proceedings remain procedurally valid.
Case-Laws
GST
Road restoration charges paid to the PWD for restoring public roads cut for a business pipeline project constitute consideration for a taxable service, rather than compensatory payment or liquidated damages, because they arise from a requested and reciprocal restoration arrangement. Targeted restoration for a business entity is not treated as a general governmental or public-utility function eligible for non-supply treatment or exemption; the recipient remains liable under the reverse-charge mechanism and cannot obtain a related refund. Electronic GST proceedings remain valid without a physical Document Identification Number where portal authentication establishes the notice's source and integrity and the recipient suffers no prejudice. The refund claim was rejected.
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