CBIC Notifies Prohibiting Consolidated Invoices for Supplies Under RCM

The Central Board of Indirect Taxes and Customs (CBIC) has issued a notification prohibiting the issuance of consolidated invoices for supplies under the Reverse Charge Mechanism (RCM). Effective from November 1, 2024, registered taxpayers must issue individual invoices for each supply covered under RCM. This update, part of the Central Goods and Services Tax (Second Amendment) Rules, 2024, aims to enhance transparency and compliance in the taxation process. By requiring separate invoices, the CBIC intends to improve traceability and reduce instances of tax evasion. Businesses are advised to update their invoicing systems to comply with this new requirement to avoid penalties or disputes with tax authorities. This change reflects CBIC’s ongoing efforts to streamline compliance and improve transparency within the Indian GST system. Taxpayers are encouraged to review their current practices and make necessary adjustments to ensure adherence to the updated rules.