Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

REVERSE CHARGE MECHANISM GST EINVOICE ROYALTY PAID TO GOVERNMENT

Amit purohit (chartered accountant ) (72 Points)

03 January 2021

Dear Sir

We are mining company paying royalty to state government and on behalf of state government we are paying GST under RCM category.

Whether we have to prepare RCM E Invoice or government will pay.

Our turnover is more than 100 Crore.

Reply
Follow
Share

2 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 03 January 2021

As is known by now, companies having turnover in any of the FY from 2017 above Rs. 500 CR will be required to register their invoices with Invoice Registration Portal (IRP) from 1st October 2020. They will receive Invoice Registration Number (IRN) and signed QR code details to authenticate the generated invoice. Now recently as notified Rs. 100 cr. above turnover companies also need to comply with E-invoice mandate from 1st Jan 2021. The documents covered under e-invoicing are -Invoice, Debit Note and Credit Note.

As of now, the scope is limited to transactions covering outward B2B supplies (i.e. supplies from the registered taxpayer to registered counter-party), Export, Deemed Export, Supplies to SEZ and transaction through E-commerce operator and B2B reverse charge transactions.

So, i think you have to register for e invoices for such rcm transactions