Guides · GST
Self-invoicing under reverse charge
Self-invoicing is a wrinkle of the reverse charge mechanism. When a registered buyer is liable to pay GST on a supply from an unregistered supplier, there is no supplier tax invoice — so the buyer raises one itself.
When self-invoicing is needed
Where reverse charge applies to a purchase from an unregistered supplier, the recipient becomes liable for the tax but has no tax invoice from the supplier to work from. To fill that gap, the recipient issues a self-invoice recording the supply and the tax it is accounting for.
The self-invoice is what puts the transaction on the recipient's records in a form that supports accounting for the tax and, where allowed, claiming the credit.
The payment voucher
Alongside the self-invoice, a recipient paying an unregistered supplier under reverse charge generally issues a payment voucher at the time of making the payment. The two documents together evidence the supply and the payment where the supplier issues nothing.
Because the recipient is doing the documentation the supplier normally would, care with these vouchers keeps reverse-charge purchases clean.
How Lekha records these purchases
Lekha records the payable against the supplier with the supporting document kept, so a reverse-charge purchase that needs a self-invoice is recorded in the ledger rather than left loose.
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 self-invoice under GST?
- An invoice a registered buyer raises for itself when it is liable to pay GST under reverse charge on a supply from an unregistered supplier, since the supplier issues no tax invoice.
- When do I need to self-invoice?
- When reverse charge applies to a purchase from an unregistered supplier and there is no supplier tax invoice for you to rely on.
- What is a payment voucher in this context?
- A document the recipient issues when paying an unregistered supplier under reverse charge, recording the payment alongside the self-invoice.
This guide is general information, not legal or tax advice. Confirm the current rules and your own circumstances for any specific case.