CBIC prohibits issuance of Consolidated Invoices for RCM Supplies

The Central Board of Indirect Taxes and Customs (CBIC) has prohibited the issuance of consolidated invoices for supplies subject to Reverse Charge Mechanism (RCM). This notification, issued on October 8, 2024, mandates that separate invoices must be issued for each supply liable to RCM. The prohibition aims to enhance transparency and compliance in the GST regime by ensuring that each RCM supply is documented individually. This change is expected to simplify the audit process and reduce discrepancies in tax reporting. The CBIC’s notification underscores the importance of maintaining accurate and detailed records for RCM supplies to ensure proper tax compliance and avoid penalties. The new rule is part of ongoing efforts to streamline GST processes and improve the overall efficiency of the tax system.