A payment voucher under the Goods and Services Tax (GST) Act, 2017, is a document issued by a registered taxpayer to an unregistered supplier when the reverse charge mechanism (RCM) applies to the transaction.

What is the reverse charge mechanism (RCM)?

Under RCM, the responsibility of paying GST on a taxable supply of goods or services shifts from the supplier to the recipient. This typically happens when the supplier is unregistered under GST.

When is a payment voucher required?

A registered taxpayer is required to issue a payment voucher to the unregistered supplier at the time of making the payment for the goods or services on which RCM applies.

What information should a payment voucher contain?

As per Section 31(3)(g) of the CGST Act, 2017, the payment voucher should include the following details:

• Name, address, and GSTIN (if any) of the supplier
• A unique consecutive serial number (not exceeding 16 characters) for the financial year
• Date of issue of the payment voucher
• Name, address, and GSTIN of the recipient
• Description of the goods or services on which tax is paid under RCM
• Amount paid to the supplier
• Rate and amount of tax charged under different heads (CGST, SGST/UTGST, or IGST, and cess, if applicable)
• Place of supply (if the transaction is interstate, including the state name and code)