---
title: "GST on Reddit ads and imported services: self-invoice, RCM and refund"
description: "A worked example for a GST-registered business buying services from a foreign supplier: create a self-invoice, pay IGST in cash, claim eligible ITC and prepare Annexure B."
topic: "Imported purchases"
published: 2026-09-11
checked: 2026-09-11
order: 11
---

**A foreign supplier's bill without Indian GST can still create a GST liability for your business.** For a taxable import of services covered by reverse charge, you pay the IGST to the Indian government. Where the supplier is unregistered, you also create a self-invoice. Eligible credit can then enter your export-refund calculation; the supplier bill alone does not establish that credit. [Notification 10/2017-Integrated Tax (Rate), entry 1](https://cbic-gst.gov.in/hindi/pdf/integrated-tax-rate/Notification10-IGST.pdf), [CBIC Circular 211/5/2024-GST](https://gstcouncil.gov.in/sites/default/files/2024-09/circular-no-211-05-2024.pdf).

This guide covers purchases by an **Indian GST-registered business** from an unrelated overseas supplier. If you are invoicing your overseas customer, use the separate [export-service invoice guide](/guides/export-service-invoice-foreign-client/).

## 1. Check the actual supplier before deciding on RCM

| What your advertising invoice shows                                                                  | Treatment to investigate                                                                                          |
| ---------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- |
| Google or Meta's Indian supplying entity, its GSTIN, your GSTIN and Indian GST charged normally      | A domestic purchase invoice; reconcile supplier-reported credit. The overseas brand does not make this an import. |
| A Reddit or other supplier located overseas, unregistered for Indian GST, with no Indian GST charged | Apply the import-of-services and reverse-charge checks below.                                                     |
| Supplier identity, location or tax treatment is unclear                                              | Resolve the invoice and billing-account details before preparing the tax entry.                                   |

An import of services requires the **supplier outside India, recipient in India and place of supply in India**. Check the relevant place-of-supply provision and any exemption; “foreign company” alone is insufficient. Entry 1 of Notification 10/2017 places covered services on the recipient under reverse charge. IGST Act section 20 applies the relevant CGST invoicing, timing, credit and payment provisions. [IGST Act, sections 2(11), 5(3), 13 and 20](https://cbic-gst.gov.in/hindi/IGST-bill-e.html), [RCM notification, entry 1](https://cbic-gst.gov.in/hindi/pdf/integrated-tax-rate/Notification10-IGST.pdf).

## 2. Create the self-invoice and retain the foreign bill

Section 31(3)(f) requires the registered recipient to invoice covered supplies received from an unregistered supplier. Since **1 November 2024**, Rule 47A gives **30 days from receipt of the supply** to issue that invoice. The overseas commercial bill remains supporting evidence. [CGST Act, section 31(3)(f)](https://www.indiacode.nic.in/indiacode/bitstream/123456789/15689/1/A2017-12.pdf#page=43), [Notification 20/2024-Central Tax, clause 4](https://gstcouncil.gov.in/sites/default/files/2024-10/ct-20-2024.pdf).

If you have already confirmed the treatment, classification and rate, use the free [RCM self-invoice and PDF pack maker](/tools/rcm-self-invoice-generator/) to choose from common SAC descriptions, create the recipient-issued invoice and combine it with the supplier bill and payment evidence. The tool works in your browser and does not upload the files.

**Fictional example:** advertising received on 10 April 2026; self-invoice issued on 15 April; supplier paid on 20 April. The example assumes monthly GSTR-3B filing, an already-determined INR taxable value of ₹20,000 and **18% IGST: ₹3,600**. Confirm classification, rate and any foreign-currency valuation first. All example dates, values and references are invented.

| Self-invoice field                  | Example entry                                                          |
| ----------------------------------- | ---------------------------------------------------------------------- |
| Document heading                    | Self-invoice under section 31(3)(f) — import of services               |
| Number / date                       | `RCM/26-27/001` / 15 April 2026                                        |
| Issuer and recipient                | `[YOUR REGISTERED LEGAL NAME]`, `[REGISTERED ADDRESS]`, `[YOUR GSTIN]` |
| Overseas supplier                   | `[LEGAL ENTITY FROM FOREIGN BILL]`, `[OVERSEAS ADDRESS AND COUNTRY]`   |
| Supplier Indian GSTIN               | Not registered — no GSTIN                                              |
| Original bill reference / date      | `FOREIGN-EXAMPLE-001` / 10 April 2026                                  |
| Description / receipt               | Digital advertising for 1–10 April 2026 / received 10 April 2026       |
| SAC                                 | `[VERIFIED SERVICE CLASSIFICATION CODE]`                               |
| Place of supply                     | `[INDIAN STATE AND STATE CODE]`                                        |
| Taxable value                       | ₹20,000                                                                |
| IGST rate / amount                  | 18% / ₹3,600                                                           |
| Total including recipient-paid IGST | ₹23,600                                                                |
| Reverse charge                      | Yes — IGST payable by recipient to government                          |
| Authentication                      | `[AUTHORISED SIGNATORY AND SIGNATURE]`                                 |

Use an annual invoice sequence of no more than 16 characters and the applicable Rule 46 particulars. Replace every placeholder before use. **The supplier is still owed ₹20,000; ₹3,600 is the separate Indian tax liability.** The ₹23,600 total shown on this self-invoice does not change the supplier's commercial bill. [CGST Rules, Rule 46](https://cbic-gst.gov.in/pdf/01012020-CGST-Rules-2017-Part-A-Rules.pdf#page=51).

## 3. Record the payment voucher and correct tax period

When paying the supplier, issue the separate payment voucher required by section 31(3)(g). For this example, `PV/26-27/001`, dated 20 April 2026, records ₹20,000 paid, links the self-invoice and payment reference, and includes the parties, service description, place of supply, tax rate, ₹3,600 tax payable and authentication. It records the supplier payment; it is not proof that GST reached the government. [CGST Act, section 31(3)(g)](https://www.indiacode.nic.in/indiacode/bitstream/123456789/15689/1/A2017-12.pdf#page=43), [CGST Rules, Rule 52](https://cbic-gst.gov.in/pdf/01012020-CGST-Rules-2017-Part-A-Rules.pdf#page=56).

For this self-invoicing case, amended section 13(3) compares the self-invoice date with the payment date, using the earlier of the payment's book entry or bank debit. Here the time of supply is **15 April 2026**, so the liability belongs to April. Do not apply an automatic 60-day wait from the foreign bill: that clause concerns cases where the supplier must issue the invoice. Associated-enterprise supplies have a separate timing proviso. [CGST Act, section 13(3), amended from 1 November 2024](https://www.indiacode.nic.in/indiacode/bitstream/123456789/15689/1/A2017-12.pdf#page=27).

## 4. Report GSTR-3B and discharge the IGST in cash

For this example, with no other transactions or adjustments:

| GSTR-3B entry                                         | Amount                                             |
| ----------------------------------------------------- | -------------------------------------------------- |
| **3.1(d)** — inward supplies liable to reverse charge | Taxable value ₹20,000; IGST ₹3,600                 |
| **4(A)(2)** — import of services                      | ₹3,600 eligible IGST credit, if conditions are met |
| **6.1(B)** — reverse-charge payment                   | ₹3,600 IGST paid through the cash ledger           |

Import-service credit belongs in **4(A)(2)**. Table 4(A)(3) is the other reverse-charge category. GSTN expressly says imported-service RCM is absent from GSTR-2B and must be entered by the taxpayer. [GST portal GSTR-2B FAQ, reverse-charge entries](https://tutorial.gst.gov.in/userguide/returns/FAQ_gstr2b.htm).

Open the relevant GSTR-3B through **Services → Returns → Returns Dashboard**. Enter the liability and eligible credit, then proceed to payment. If the cash balance is insufficient, create and pay a challan under the correct IGST tax head. Complete liability offset and file the return. **Depositing money through a challan only funds the cash ledger; verify the debit discharging RCM in the filed return and ledgers.** Existing ITC cannot pay this RCM liability. [GST portal GSTR-3B filing and payment manual](https://tutorial.gst.gov.in/userguide/returns/Create_and_Submit_GSTR3B.htm).

Eligible ITC can be taken in the same return when the tax is discharged and the documentary, receipt, business-use and other section 16/17 conditions are satisfied. Creating a self-invoice does not make blocked or personal expenses creditable. Circular 211 also explains the invoice-year basis for the ITC time limit; it does not authorise delaying invoicing or payment. [CBIC Circular 211/5/2024-GST](https://gstcouncil.gov.in/sites/default/files/2024-09/circular-no-211-05-2024.pdf).

## 5. Carry the eligible credit into Annexure B

For the imported advertising service, select **Import of Services** and the **Input Services** category. In the current official utility, the supplier-GSTIN and GSTR-2B-period fields are disabled and filled as **NA**. The port, CGST and SGST fields are also disabled for this import-service case. Do not insert your own GSTIN as the supplier's or invent a 2B period. [GST portal Annexure B manual](https://tutorial.gst.gov.in/userguide/refund/Refund_of_ITC_paid_on_Exports_of_Goods_and_Services.htm).

Keep one inward-supply record supported by the self-invoice and linked foreign bill; do not claim both as separate purchases. Retain the service receipt record, payment voucher, bank/card evidence, filed GSTR-3B and cash-ledger debit with it.

The eligible ₹3,600 joins the relevant period's Net ITC. The amount actually refundable depends on the [export-refund formula and credit-ledger limits](/guides/gst-refund-calculation-more-than-turnover/). Follow the [Annexure B worked example](/guides/annexure-b-worked-example/) to see it alongside domestic purchases and excluded capital-goods credit.