Introduction
The Goods and Services Tax Network (GSTN) has announced an enhancement to the GST e-invoicing system to support recipient-generated self-invoices for specified transactions covered under the Reverse Charge Mechanism (RCM). The new facility introduces two supply-type codes: RCMDOM and RCMIMP. These codes are intended to help eligible registered taxpayers report self-invoices for specified domestic supplies received from unregistered suppliers and for imports of services where GST is payable under RCM. The enhancement is intended for registered taxpayers with an Aggregate Annual Turnover (AATO) of ₹5 crore or more, subject to the applicable statutory provisions and government notifications. According to the advisory reported on 17 October 2026, the functionality is available in the sandbox environments of authorised Invoice Registration Portals (IRPs). The production rollout date and commencement of the associated reporting requirements are yet to be announced. Understanding these changes can help businesses and accounting teams prepare their invoicing systems and maintain compliance readiness.
What Is the Reverse Charge Mechanism (RCM) Under GST?
Under the Reverse Charge Mechanism, the responsibility to pay GST shifts from the supplier to the recipient for specified categories of supplies under GST law. Under the normal mechanism, the supplier generally charges GST on the invoice and pays the applicable tax to the government. Under RCM, the recipient is responsible for paying the tax where the law specifies that reverse charge applies. RCM may apply to certain domestic supplies and imports of services, subject to the relevant provisions. For example, a business may receive a service from a foreign service provider. If the transaction qualifies as an import of services and GST is payable by the Indian recipient under RCM, the recipient must comply with the applicable tax and documentation requirements. Proper documentation is important because it helps businesses record the transaction, calculate the tax liability, and report the relevant information correctly in their GST records.
What Is the New GSTN e-Invoicing Facility?
The new facility expands the e-invoicing system to support recipient-generated self-invoices for specified RCM transactions. Traditionally, the standard e-invoicing process requires notified suppliers to report eligible invoices through an authorised Invoice Registration Portal and obtain an Invoice Reference Number (IRN). Under the new facility, eligible registered recipients will be able to report the relevant self-invoices through the e-invoicing framework using the appropriate supply-type code.
The two new codes are:
RCMDOM: For recipient-generated self-invoices relating to specified domestic supplies received from unregistered persons where the recipient is liable to pay GST under RCM.
RCMIMP: For recipient-generated self-invoices relating to imports of services from suppliers located outside India where the recipient is liable to pay GST under RCM.
The facility is designed to standardise the reporting of these transactions through the authorised IRP system.
RCMDOM vs RCMIMP: Key Differences
| Particulars | RCMDOM | RCMIMP |
|---|---|---|
| Full meaning | Reverse Charge Mechanism on Domestic supplies | Reverse Charge Mechanism on Import of Services |
| Transaction type | Specified domestic supplies from unregistered persons | Import of services from overseas suppliers |
| Invoice preparation | Recipient-generated self-invoice | Recipient-generated self-invoice |
| Tax responsibility | Recipient, where RCM applies | Recipient, where RCM applies |
| Main purpose | Reporting eligible domestic RCM self-invoices | Reporting eligible import-of-services RCM self-invoices |
Both codes are intended to facilitate reporting of recipient-generated self-invoices. The correct code depends on the nature and origin of the transaction.
1. Understanding RCMDOM
RCMDOM is intended for recipient-generated self-invoices relating to specified domestic supplies received from unregistered persons when the registered recipient is liable to pay GST under RCM. For example, a registered business receives a supply from an unregistered domestic supplier that falls within a category covered by reverse charge provisions. In such a case, the recipient may be required to issue a self-invoice under the applicable GST provisions. The new facility is designed to enable eligible taxpayers to report such self-invoices through an authorised IRP using the RCMDOM code. Businesses should remember that not every purchase from an unregistered supplier attracts RCM. The tax liability must be determined under the applicable GST provisions.
2. Understanding RCMIMP
RCMIMP is intended for recipient-generated self-invoices relating to imports of services from suppliers located outside India where the Indian recipient is liable to pay GST under RCM. For example, an Indian business obtains a service from a foreign service provider. If the transaction qualifies as an import of services and reverse charge applies, the Indian recipient must meet the relevant GST obligations. The new facility is designed to support reporting of eligible self-invoices through the e-invoicing system using the RCMIMP code. Businesses dealing with overseas service providers should maintain appropriate supporting documentation, including contracts, invoices, payment records, and other relevant transaction details.
Who Is Covered by the New Facility?
The announced functionality is intended for registered taxpayers with an Aggregate Annual Turnover of ₹5 crore or more. However, the threshold alone should not be treated as confirmation that every business must immediately begin reporting all RCM transactions through this facility. The actual applicability, scope, and effective date will depend on the relevant statutory provisions, government notifications, and implementation instructions. Businesses should therefore verify the latest official guidance before changing their invoicing processes or treating the new facility as a mandatory production requirement.
How Will the New e-Invoicing Facility Work?
The proposed process for eligible recipient-generated self-invoices involves the following general steps:
Step 1: Identify the RCM transaction. Determine whether the domestic supply or imported service falls under the applicable reverse charge provisions.
Step 2: Prepare the self-invoice. Generate the required invoice with the prescribed transaction details in accordance with GST law.
Step 3: Select the appropriate supply type. Use RCMDOM for eligible domestic supplies from unregistered persons or RCMIMP for eligible imports of services.
Step 4: Submit the invoice details to an authorised IRP. Report the prescribed particulars through the applicable e-invoicing system.
Step 5: Complete system validation. The submitted information will be checked against the applicable technical specifications and business validations.
Step 6: Obtain the IRN. If the submission is accepted, the system will generate an Invoice Reference Number in accordance with the applicable requirements.
Important: This is a general explanation of the announced functionality, not confirmation that the production workflow is currently operational. Taxpayers should consult the official technical specifications and implementation instructions before using the facility for live transactions.
Where Can Businesses Test the New Facility?
The reported advisory states that the functionality has been implemented in the sandbox environments of all six authorised Invoice Registration Portals for testing and integration.
The relevant portals and resources include:
NIC IRP-1: https://einvoice1.gst.gov.in
NIC IRP-2: https://einvoice2.gst.gov.in
Cygnet IRP: https://einvoice3.gst.gov.in
Clear IRP: https://einvoice4.gst.gov.in
EY IRP: https://einvoice5.gst.gov.in
IRIS IRP: https://einvoice6.gst.gov.in
NIC e-Invoice API Developer Portal: https://einv-apisandbox.nic.in/
Businesses using ERP software, accounting applications, GST Suvidha Providers (GSPs), or Application Service Providers (ASPs) can coordinate with their technology teams to assess the impact of the new codes.
Before testing, users should check the relevant portal’s documentation and sandbox instructions. Sandbox testing is intended for preparation and does not itself establish that live reporting is mandatory.
How Will the New Facility Benefit Businesses?
1. Better Digital Documentation
The facility is intended to bring specified recipient-generated self-invoices within the e-invoicing reporting framework, supporting more standardised digital records.
2. Improved Accounting-System Integration
Businesses and technology providers can prepare their accounting and ERP systems to recognise the new supply-type codes and handle the relevant invoice data.
3. More Consistent Reporting
Standardised supply-type codes can help distinguish domestic RCM transactions from imports of services in the applicable reporting workflow.
4. Better Compliance Preparation
Businesses can review their existing RCM processes, identify relevant transactions, and prepare their teams before the production implementation begins.
5. Greater Process Visibility
The structured reporting framework is intended to make eligible self-invoice information easier to process through the e-invoicing system, subject to the final technical and legal requirements.
These are intended operational benefits. Actual outcomes will depend on the final implementation, system integration, and compliance practices followed by taxpayers.
What Should Businesses Do Now?
Although the production rollout date has not been announced, businesses can begin preparing for the change.
Review domestic purchases from unregistered suppliers and identify transactions that may attract RCM.
Review overseas service payments and determine whether they qualify as imports of services.
Check whether the business meets the relevant turnover threshold and other applicable conditions.
Discuss the new codes with the accounting, taxation, and ERP teams.
Coordinate with software vendors or GS
A proactive review can help businesses minimise disruption when the production functionality becomes available.
Conclusion
The introduction of RCMDOM and RCMIMP represents an enhancement to the GST e-invoicing framework for specified reverse charge transactions. The facility is designed to support recipient-generated self-invoices for eligible domestic supplies from unregistered persons and imports of services. For businesses with an Aggregate Annual Turnover of ₹5 crore or more, the announcement is a useful signal to review RCM documentation, assess accounting-system readiness, and follow official implementation updates. However, businesses should distinguish between sandbox testing and live compliance requirements. The applicable notifications, technical instructions, and production rollout date must be checked before taking action.
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