India compliance
Reverse charge, shown and reported.
On a reverse-charge sale the GST is printed and reported, not charged to the customer or booked.
In part4 of 7 parts work today
Part of India compliance. Outside India, your country pack sets the local tax invoice and the VAT or sales-tax return report; we build and test it before go-live. Your country
How it works3 steps
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Tick "Reverse charge applies"
On the sales invoice, for a supply notified under reverse charge. The customer must be GST-registered; saving warns and submitting refuses otherwise.
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The GST comes off the total
Each line keeps its GST rate, and the GST the customer pays the government is shown, but no GST rows are charged or posted.
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Print and report
The GST tax invoice says "Tax payable on reverse charge Yes" with the tax per line, and the invoice goes into GSTR-1 with the reverse-charge flag.
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In short
For a sale under reverse charge, such as goods transport or security services to a company, MyRecords prints "Tax payable on reverse charge: Yes" and the GST the customer must pay, and reports the invoice in GSTR-1 with the reverse-charge flag. It does not charge that GST to the customer or post it to your output tax: the customer owes you the taxable value only. Purchase bills marked reverse charge are reported in GSTR-3B table 3.1(d). The treatment follows the law and the portal formats; an independent CA review is pending.
The details
What it covers.
4 of 7 work today
- Works today 4
- In part 3
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On the sales invoiceWorks today
A banner shows "Tax payable on reverse charge Yes" and the GST the customer pays the government. Non-GST rows such as TCS or freight stay on the invoice.
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On the printWorks today
The per-line CGST and SGST or IGST, and a block "Tax payable by the recipient on reverse charge (not included in the total)". The total is the taxable value.
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In GSTR-1Works today
Reported in table 4B (B2B) with the reverse-charge flag and the tax the recipient pays.
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In GSTR-3BIn part
The tax is not added to your liability; the buyer pays it in their own 3.1(d). Keeping the taxable value in your 3.1(a) follows the GSTN auto-population advisory; confirm it with your CA.
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On the e-invoiceWorks today
The upload file marks reverse charge and passes the tax per line, kept out of the invoice total, so the IRN carries what the customer pays. Reverse charge is refused for exports and deemed exports.
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On the e-way billIn part
Tax values are sent as 0, because the customer is not charged GST. No official text says this directly; confirm it with your CA.
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Purchases under reverse chargeIn part
Bills you mark reverse charge go into GSTR-3B table 3.1(d) as tax you pay in cash, with the credit in 4A(3), and the Self-invoice (RCM) print covers supplies from unregistered suppliers. A GSTR-2B row under reverse charge becomes a draft bill without tax lines, for you to add the reverse-charge lines.
Said plainly
Not there yet
- An independent CA's sign-off on this treatment. Until then, check your reverse-charge invoices and returns with your own CA.
- Working out which of your supplies fall under reverse charge; you tick it on the invoice.
Official sources
Questions
Questions people ask
Something else on your mind?
Ask us anything about it. A person from our team replies.
Ask a question01Does MyRecords charge GST on a reverse-charge invoice?
No. Under section 9(3) of the CGST Act the recipient pays the tax, so the invoice total is the taxable value. The GST is printed for the record and reported in GSTR-1.
02Why print the tax at all?
Rule 46 of the CGST Rules asks every tax invoice to say whether tax is payable on reverse charge, and GSTR-1 and the e-invoice need the tax figures.
03Can I issue a reverse-charge invoice to an unregistered customer?
No. Everyone who pays tax under reverse charge must be registered, and the e-invoice portal takes reverse charge only for B2B and SEZ supplies. Saving a draft warns; submitting refuses.
04Is this checked by a CA?
Not yet. The treatment follows the CGST Act, the CGST Rules, the e-invoice schema and GSTN's GSTR-3B advisory, and two points are marked for a CA to confirm. Check your first reverse-charge returns with your own CA.
Last updated Facts last verified against the official sources below Applies to MyRecords 3 Nov 2026 release Expert review pending
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