TAX INVOICE, CREDIT AND DEBIT NOTES UNDER MODEL ‘GST’ LAW
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 5-10-2016
Chapter VII of Model GST law ('law' for short) discusses about the tax invoice, credit and debit notes.
Tax invoice
Tax invoice is to be issued for both taxable goods as well as taxable service. Section 23 of the law provides that a registered taxable person supplying-
* Taxable goods shall issue a tax invoice showing the description, quantity and value of goods, the tax thereon and such other particulars as may be prescribed;
* Taxable service shall issue a tax invoice, within the prescribed time, showing the description, the tax charges thereon and such other particulars as may be prescribed.
Contents of tax invoice
The tax invoice, in general, shall have the following details-
* name, address and GSTIN of the supplier;
* a consecutive serial number containing only alphabets and/or numerals, unique for a financial yea
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sed Invoice' or 'Supplementary Invoice' is to be indicated prominently, where applicable along with the date and invoice number of the original invoice; and'
* signature or digital signature of the supplier or his authorized representative;
The Board/Commissioner may specify, by notification-
* the number of digits of HSN code for goods or the accounting code for services, that a class of taxable persons shall be required to mention, for such period as may be specified in the said notification, and
* the class of taxable persons that would not be required to mention the HSN code for goods or, the Accounting Code for Services, for such period as may be specified in the said notification.
Invoice in exports
The invoice, in case of exports, shall carry an endorsement 'Supply meant for Export on Payment of IGST' or 'Supply meant for export under bond without payment of IGST'. The following details are to be incorporated in the invoice-
* name and address of the recipient;
* ad
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porter' and the triplicate copy is to be marked as 'Triplicate for supplier'. The duplicate copy is not required to be carried by the transporter if the supplier has obtained an Invoice Reference Number.
The invoice in case of supply of services shall be prepared in duplicate. The original copy is to be marked as 'original for recipient' and the duplicate copy is to be 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.
Invoice Reference Number
A registered taxable person may obtain an 'invoice reference number' from the common portal (the common GST electronic portal approved by the Central Government and State Governments, on the recommendation of the Council, for the specified purposes, as may be notified under this Act) by uploading, on the said portal, a tax invoice issued by him in Form GST-INV-1 and produce the same for verification by the proper officer as re
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ch particulars as may be prescribed. A bill of supply shall be issued by the supplier containing the following particulars-
* name, address and GSTIN of the supplier;
* a consecutive serial number containing only alphabets and/or numerals, unique for a financial year;
* date of issue;
* name, address and GSTIM/.UID, if registered of the recipient;
* HSN Code of goods or Accounting Code for services;
* Description of goods of services;
* value of goods or services taking into account discount or abatement, if any; and
* signature or digital signature of the supplier or his authorized representative.
The bill of supply is not required to be issued if the value of the goods or services is less than ₹ 100/- where the recipient of the goods or services requires such bill. The registered taxable person shall prepare a consolidated bill of supply at the close of each day in respect of all such supplies where the bill of supply has not been issued due to lesser value to
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issued by the said person if the incidence of tax and interest on such supply has been passed by him to any other person.
Section 24(2) of the law provides for the issue of a debit note. Where a tax invoice has been issued for supply of any goods and/or services and the taxable value and/or tax charged in that tax invoice is found to be less than the taxable value and/or tax payable in respect of such supply, the taxable person, who has supplied such goods and/or services, shall issue to the recipient a debit note containing such particulars as may be prescribed on or before the thirtieth day of September following the end of the financial year in which such supply was made, or the date of filing of the relevant annual return, whichever is earlier.
Section 24(3) of the law imposes an obligation on a person who issues or receives a debit note or credit note. Any registered taxable person who issues or receives a credit or debit note in relation to a supply of goods and/or services sha
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of supply;
* taxable value of goods or services, rates of tax and the amount of tax credited or debited to the recipient; and
* signature or digital signature of the supplier or his authorized representative.
Tax invoices of 'input service distributor'
"Input Service Distributor" means an office of the supplier of goods and / or services which receives tax invoices issued under section 23 towards receipt of input services and issues tax invoice or such other document as prescribed for the purposes of distributing the credit of CGST (SGST in State Acts) and / or IGST paid on the said services to a supplier of taxable goods and / or services having same PAN as that of the office referred to above.
For the purposes of distributing the credit of CGST (SGST in State Acts) and / or IGST, Input Service Distributor shall be deemed to be a supplier of services.
A tax invoice issued by an 'Input Service Distributor' shall contain the following details-
* name, address and GS
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ancial company, the said supplier 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 required for a tax invoice.
Tax invoice of a GTA
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, he shall issue a tax invoice or any other document in lieu thereof, by whatever named 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 designation;
* GSTIN of the person liable for paying tax whether as consignor or consignee or GST; and also
* contains other information as prescribed for tax invoice.
Tax invoice of
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