India Tests E-Invoicing for Recipient-Generated Reverse-Charge Self-Invoices

Summary

GSTN published an advisory on 16 October 2026 introducing sandbox functionality for recipient-generated self-invoices under the Reverse Charge Mechanism, following the 57th GST Council’s recommendation.

Two new supply types are available for testing: RCMDOM for specified domestic supplies from unregistered persons and RCMIMP for imports of services where the registered recipient accounts for GST under reverse charge.

The proposed framework targets registered taxpayers with Aggregate Annual Turnover of ₹5 crore or more, but the production rollout and mandatory reporting start date have not yet been announced and remain subject to statutory provisions and notifications.

Extended article

India is preparing to extend its e-invoicing framework beyond supplier-issued outward invoices. On 16 October 2026, the Goods and Services Tax Network published an advisory introducing testing functionality for recipient-generated self-invoices under the Reverse Charge Mechanism. The development follows a recommendation made at the GST Council’s 57th meeting on 8 October 2026.

The first new supply type, RCMDOM, covers recipient-generated self-invoices for specified domestic supplies received from unregistered persons where the registered recipient is liable to pay GST under reverse charge. The second, RCMIMP, covers recipient-generated self-invoices for imports of services where the Indian recipient is liable for GST under reverse charge.

The functionality is intended for registered taxpayers with Aggregate Annual Turnover of ₹5 crore or more, subject to the final statutory provisions and government notifications. An eligible recipient will report the self-invoice through an authorised Invoice Registration Portal. Following successful validation, the portal will generate an Invoice Reference Number.

The new functionality is available in the sandbox environments of the authorised Invoice Registration Portals for testing and integration. The NIC e-invoice API developer portal also records that reporting of RCM invoices was added to the existing e-invoice system on 16 October 2026. The functionality is not yet a live mandatory production requirement: GSTN will announce the production rollout date and the commencement date for reporting separately.

The change is operationally significant because responsibility for generating and reporting the invoice rests with the recipient. Businesses in scope should identify domestic unregistered-vendor and imported-service transactions for which a self-invoice is required, and assess how procurement, accounts payable, tax determination and e-invoicing systems will create and transmit the RCMDOM or RCMIMP record.

Sandbox testing should also cover supplier and recipient data, document numbering, tax values, IRN response handling and reconciliation with accounting and GST return processes. Production changes should remain conditional until the relevant notification confirms the legal scope, effective date and final validations.

External resources

India Introduces E-Invoicing for GST Reverse Charge Self-Invoices

GSTN has added two e-invoicing categories for reverse charge transactions: RCM-DOM for specified domestic purchases from unregistered suppliers and RCM-IMP for imports of services.
Eligible registered taxpayers with aggregate annual turnover of ₹50 million or more will be able to generate IRNs for self-invoices through authorised IRPs, expanding e-invoicing beyond standard sales invoices.
The change implements a GST Council recommendation and is meant to improve reporting and compliance for RCM transactions, reducing the risk of such supplies escaping tax.
Businesses will need tighter ERP/internal controls because self-invoices under RCM must generally be issued within 30 days, with potential interest exposure and ITC timing issues if transactions are identified late.
GSTN has enabled testing on all six authorised e-invoice portals; the production rollout date and formal reporting start date are still to be announced, with detailed technical guidance to follow.

Source: a2ztaxcorp.net

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.