COMPLETE ANALYSIS OF INVOICE PROVISION UNDER GST LAW
By: – Sandeep Rawat
Goods and Services Tax – GST
Dated:- 24-8-2018
Generally speaking, an invoice is a commercial instrument issued by a seller to a buyer. It identifies both the trading parties, and lists, describes, and quantifies the items sold, shows the date of shipment and mode of transport, prices and discounts, if any, and the delivery and payment terms.
In certain cases, (especially when it is signed by the seller or seller's agent), an invoice serves as a demand for payment and becomes a document of title when paid in full. Types of invoices include:
Invoice under GST
Under the GST regime, an “invoice” or “tax invoice” means the tax invoice referred to in section 31 of the CGST Act, 2017. This section mandates the issuance of an invoice or a bill of supply for every supply of goods or services.
It is not necessary that only a person supplying goods or services needs to issue an invoice. The GST law ma
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x invoice under GST
Under GST, a tax invoice is an important document. It not only evidences the supply of goods or services, but is also an essential document for the recipient to avail Input Tax Credit (ITC). A registered person cannot avail Input Tax Credit unless he is in possession of a tax invoice or a debit note.
GST is chargeable at the time of supply. Invoice is an important indicator of the time of supply. Broadly speaking, the time of supply of goods or services is the date of issuance of an invoice or receipt of payment, whichever is earlier.
Thus the importance of an invoice under GST cannot be over-emphasised. Suffice it to say, the tax invoice is the primary document evidencing the supply and vital for availing Input Tax Credit.
When should a tax invoice or a bill of supply be issued by a registered person Goods
The time for issuing an invoice would depend on the nature of supply viz. whether it is a supply of goods or services. A registered person supplying tax
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combination there of, unique for a financial year
c. Date of its issue
d. Name, address and GSTIN or UIN, if registered, of the recipient
e. Name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is un-registered and where the value of taxable supply is fifty thousand rupees or more
f. HSN code of goods or Accounting Code of Services
g. Description of goods or services
h. Quantity in case of goods and unit or Unique Quantity Code there of
i. Total value of supply of goods or services or both
j. Taxable value of supply of goods or services or both, taking into account the discount or abatement, if any
k. Rate of tax (Central tax, State tax, Integrated tax, union territory tax or cess)
l. Amount of tax charged in respect of taxable goods or services (Central tax, State tax, Integrated tax, union territory tax or cess)
m. Place of supply along with the name of State, in case of a supply in the cours
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esentative
Services
A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as prescribed in the Invoice Rules.
The Government may, on the recommendations of the Council, by notification and subject to such conditions as may be mentioned therein, specify the categories of services in respect of which:
* Any other document issued in relation to the supply shall be deemed to be a tax invoice; or
Tax invoice may not be issued.
Thus, it can be seen that in case of goods, an invoice has to be issued before or at the time of supply. In case of services, however, an invoice has to be issued before or after the provision of services. If the invoice is issued after the provision of service, it has to be done within the specified period of 30 days from the date of supply of service, as per invoice rules.
Revised Inv
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.
Receipt Voucher/Refund voucher on receipt of advance payment
Whenever a registered person receives an advance payment with respect to any supply of goods or services or both, he has to issue a receipt voucher or any other document, containing such particulars as prescribed in the Invoice Rules, evidencing the receipt of such payment.
Where any such receipt voucher is issued, but subsequently no supply is made and no tax invoice is issued, the registered person who has received the advance payment can issue a refund voucher against such payment.
A receipt voucher needs to contain the following particulars:
* Name, address and GSTIN of the supplier
A consecutive serial number containing alphabets or numerals or special characters like hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year
Date of its issue
Name, address and GSTIN or UIN, if registered, of the recipient
Description of goods or services
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from unregistered persons) has to issue an invoice in respect of goods or service or both received by him. Such a registered person in respect of such supplies also has to issue a payment voucher at the time of making payment to the supplier.
Invoice in case of continuous supply of goods
In case of continuous supply of goods, where successive statements of accounts or successive payments are involved, the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such payment is received.
Invoice in case of continuous supply of services
In case of continuous supply of services, where:
* The due date of payment is as certainable from the contract, the invoice shall be issued on or before the due date of payment.
The due date of payment is not as certainable from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment.
The payment is linked to the completion of an event, th
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. A registered person who issues such a credit note has to declare details of such credit note in the return for the month during which such credit note has been issued but not later than September following the end of the financial year in which such supply was made or the date of furnishing of the relevant annual return, whichever is earlier. The tax liability of the registered person will be adjusted in accordance with the credit note issued, however no reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and interest on such supply has been passed on to any other person.
In cases where tax invoice has been issued for a supply and subsequently it is found that the value or tax charged in that invoice is less than what is actually payable/chargeable, the supplier can issue a debit note to the recipient.
Any registered person who issues a debit note in relation to a supply of goods or services or both, shall declare the details of such debi
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and the amount of the tax credited or, as the case may be, debited to the recipient.
Signature or digital signature of the supplier or his authorized representative.
Manner of issuing invoice
The invoice shall be prepared in triplicate, in case of supply of goods, in the following manner:
* The original copy being marked as ORIGINAL FOR RECIPIENT
The duplicate copy being marked as DUPLICATE FOR TRANSPORTER
The triplicate copy being marked as TRIPLICATE FOR SUPPLIER
The invoice shall be prepared in duplicate, in case of supply of services, in the following manner:
* The original copy being marked as ORIGINAL FOR RECIPIENT
The duplicate copy being marked as DUPLICATE FOR SUPPLIER
The serial number of invoices issued during a tax period shall be furnished electronically through the Common Portal in Form GSTR-1.
Tax invoice in Special Cases
An ISD invoice or, as the case may be, an ISD credit note issued by an Input Service Distributor shall contain the following det
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pplier shall issue a tax invoice or any other document in lieu thereof, by whatever name called, whether or not serially numbered, and whether or not containing the address of the recipient of taxable service but containing other information as prescribed under rule 1 of Invoice Rules.
Where the supplier of taxable service is a goods transport agency supplying services in relation to transportation of goods by road in a goods carriage, the said supplier shall issue a tax invoice or any other document in lieu thereof, by whatever name called, containing the gross weight of the consignment, name of the consignor and the consignee, registration number of goods carriage in which the goods are transported, details of goods transported, details of place of origin and destination, GSTIN of the person liable for paying tax whether as consignor, consignee or goods transport agency, and also containing other information as prescribed under rule 1 of Invoice Rules.
Where the supplier of taxab
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r, if registered
Name, address and GSTIN or UIN of the consignee, if registered
HSN code and description of goods
Quantity (provisional, where the exact quantity being supplied is not known) Taxable value
Tax rate and tax amount – Central tax, State tax, Integrated tax, Union territory tax or cess, where the transportation is for supply to the consignee
Place of supply, in case of inter-State movement
Signature
The delivery challan shall be prepared in triplicate, in case of supply of goods, in the following manner:
* The original copy being marked as ORIGINAL FOR CONSIGNEE
The duplicate copy being marked as DUPLICATE FOR TRANSPORTER
The triplicate copy being marked as TRIPLICATE FOR CONSIGNER
Where goods are being transported on a delivery challan in lieu of invoice, the same shall be declared in FORM [WAYBILL].
Where the goods being transported are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of good
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