How to raise an invoice for purchase from unregistered dealers or in other words self-invoice?

Answer  – Section 9(4) of CGST Act requires payment of tax on reverse charge basis for purchases from unregistered dealers. The credit of such tax paid has also been made available. But the current practical issue in the industry is regarding how to raise the invoice in case of such purchases. The doubt being that whether the details of the unregistered seller should appear on the invoice or the details of registered purchaser should be furnished as details of the supplier.

In the common practice, it is a general understanding that even if the purchaser is raising an invoice, the details of the seller shall appear as the supplier, even if he is unregistered. But there is the difference between Form GSTR-2 notified in rules and the details being asked on the portal. As per rules, in Form GSTR-2, the GSTIN of the supplier has been asked in case of purchase from the unregistered person. Here supplier is unregistered and thus he will not be having GSTIN number. Therefore, as per law details of the purchaser shall be furnished as details of the seller. Whereas online on GST common portal, the name of the supplier has been asked. This anomaly is expected to be rectified by GSTN.