Shriram, registered in Delhi hired a truck from a Goods Transport Agency (GTA), being unregistered person. Accordingly, Tax amounting to ₹ 6,500/- is payable under Reverse charge basis by Shriram and he is having ₹ 15,00

Rule 85 of the CGST Rules, 2017 provides that the liability payable under RCM shall be paid by way of debiting the electronic cash ledger only. Also, the tax paid under RCM will be available for ITC. Hence Shriram is not entitled to adjust the liability of RCM of ₹ 6,500 against credit ledger. Section 31 (3) (f) provides that a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both; In case, the supplier of service or goods or both is a registered person, no invoice is required to be issued by the recipient of such supply. Section 31 (3) (g) requires such recipient /registered person to issue a payment voucher at the time of making payment to the supplier. Thus, since GTA is an unregistered person, Shriram will issue an invoice on the date of receipt of goods or services or both. Further, he shall issue a payment voucher at the time of making payment to the supplier.