Guides · Invoicing
The payment voucher, explained
A payment voucher is a document that goes the other way from most billing paperwork: it is issued by the person making a payment, not receiving it, in the specific case of reverse charge.
When a payment voucher is used
Under the reverse charge mechanism, the recipient of a supply pays the GST. Where that recipient pays a supplier — often an unregistered one — it generally issues a payment voucher at the time of making the payment, recording it in the recipient's own records.
It exists because in a reverse-charge purchase the usual supplier paperwork may be missing, so the buyer documents the payment itself.
How it differs from a receipt voucher
A receipt voucher is issued by a supplier receiving an advance; a payment voucher is issued by a recipient making a payment under reverse charge. One records money coming in, the other money going out, in different situations.
Together with a self-invoice, the payment voucher completes the documentation a buyer needs for a reverse-charge purchase.
How Lekha records the payment
Lekha records payments against the supplier and bill they settle, keeping the supporting document with the payable, so a reverse-charge payment is captured in the ledger.
Lekha records what your documents say and tracks the money on both sides — what you owe and what you are owed. It records and tracks; it does not replace your accountant.
Questions
- What is a payment voucher under GST?
- A document a recipient issues when paying a supplier under reverse charge, recording the payment in the recipient's own records.
- How is a payment voucher different from a receipt voucher?
- A receipt voucher is issued by a supplier receiving an advance; a payment voucher is issued by a recipient making a payment under reverse charge.
- When do I issue a payment voucher?
- When you pay a supplier for a supply on which you are liable to pay GST under reverse charge, typically from an unregistered supplier.
This guide is general information, not legal or tax advice. Confirm the current rules and your own circumstances for any specific case.