GST E-Invoice Reverse Charge Rule: Starts 1 January 2027
From 1 January 2027, e-invoicing under GST also covers supplies received from an unregistered person where you pay tax under reverse charge, and import of services. The notice was issued by CBIC on 26 October 2026.
What changed
When: From 1 January 2027, under CBIC Notification No. 04/2026-Central Tax dated 26 October 2026 (G.S.R. 918(E)).
| Before | Now |
|---|---|
| Supply to a registered person | |
| Covered by e-invoicing | No change, still covered |
| Exports | |
| Covered by e-invoicing | No change, still covered |
| Supply received from an unregistered person where you pay tax under reverse charge | |
| Not covered | Covered from 1 January 2027 |
| Import of services | |
| Not covered | Covered from 1 January 2027 |
What is the new GST e-invoice rule for reverse charge?
CBIC issued Notification No. 04/2026-Central Tax on 26 October 2026. It amends Notification No. 13/2020-Central Tax, which sets out the supplies for which an e-invoice is prescribed. Two kinds of transaction are added to the list.
The first is a supply of goods or services received from an unregistered person where the recipient pays the tax on reverse charge. The second is import of services. Both are covered from 1 January 2027.
When does e-invoicing for reverse charge start?
The notification says it comes into force on 1 January 2027. Until then nothing changes for these transactions. Supplies to registered persons and exports are already in the list and stay as they are.
Who has to follow the new rule?
The notification adds types of supply to the list. It does not set a turnover limit of its own. Who must issue e-invoices is decided by the earlier e-invoicing notifications, and we did not see a change to that in this notice.
If your business already issues e-invoices, ask your accountant how reverse charge purchases and imports of services will be handled in your billing software from 1 January 2027. If you are not under e-invoicing today, this notice on its own does not put you under it.
What is reverse charge in simple words?
Normally the seller collects GST from you and pays it to the government. Under reverse charge, you pay the tax yourself. This happens, for example, when you buy certain goods or services from an unregistered person, or buy services from outside India.
Registered businesses that buy from small unregistered sellers or from foreign service providers should check their purchase records now.
What should a small business do now?
You have two months. Make a list of your reverse charge purchases, such as services from foreign vendors, and ask your billing software provider whether the update will be ready. Keep your GST registration details current in the GST registration guide.
Frequently asked questions
When does e-invoicing for reverse charge start?
On 1 January 2027, under Notification No. 04/2026-Central Tax dated 26 October 2026.
Does e-invoicing now apply to import of services?
Yes, from 1 January 2027 import of services is added to the transactions covered. Import of goods is not mentioned in the notification.
Does this notice put every small business under e-invoicing?
No. The notice adds transaction types. Who must issue e-invoices is set by the earlier e-invoicing notifications. Ask your accountant about your case.
RCM par e-invoice kab se lagu hoga?
1 January 2027 se. Unregistered vyakti se kharidi jahan reverse charge par tax aap dete hain, aur services ke import par e-invoicing lagu hogi.
Short summary in Hinglish
CBIC ne 26 October 2026 ko Notification 04/2026-Central Tax jari kiya. 1 January 2027 se e-invoicing unregistered vyakti se reverse charge wali kharidi aur services ke import par bhi lagu hogi. Kaun e-invoice banayega, yeh pehle ke notifications se tay hota hai.
