When to issue payment voucher under GST?

If there is a situation where a reverse charge is applicable on a transaction, then the receiver of the goods or services is supposed to pay the tax but not the supplier of goods/services under the GST. So, when to issue payment voucher under GST? Since the supplier cannot issue a tax invoice, the buyer must issue a payment voucher to the recipient of goods/services. This is when we as receiver/ buyer need to issue payment voucher in GST.

The recipient who is registered under GST must issue a payment voucher for the transaction of goods/services. And reverse charge can be applied to the supplier as well. I will provide you with an example.

A tea company registered in Delhi buys tea from an agriculturalist in Kerala for Rs. 100000. During these circumstances, the tea company is applicable for reverse charges. The tea company must pay (5*100000) Rs. 5,000 for the tea they purchased from the agriculturalist. The tea company also needs to issue a payment voucher to agriculturalists of Rs. 100000. This is when to issue payment voucher in GST.

1. Name, address, and GSTIN of the supplier (if registered).

2. A consecutive serial number which does not exceed 16 characters of any combination that is unique for the financial year.

3. Payment voucher’s date of issue.

4. Name, address and GSTIN of the recipient. 

5. Information of the goods and services on which tax is paid based on reverse charge.

6. The amount is transferred to the supplier.

7. The rate and amount of tax charged for different heads such as CGST, SGST/UTGST or IGST and cess.

8. If the transaction has occurred from two different states then state name and code are required.

9. The signature or Digital signature of the supplier or the authorised representative of the supplier.

I hope this answers your question regarding the payment voucher in GST.

Read more: