GST – GST FAQ 3rd Edition – December, 2018 – 13.1 – 13.1 Invoice, Credit and Debit Note Q 44. What is the significance of Tax Invoice under GST? Ans. An invoice is an important document evidencing supply of goods and services. It is an important determinant of time of supply i.e. when the liability to pay GST arises. It is also a mandatory document for the purposes of availing Input Tax Credit. Q 45. When should a supplier of goods issue a Tax invoice? Ans. A registered person supplying taxable goods shall, before or at the time of, – (a) removal of goods for supply to the recipient, where the supply involves movement of goods; or (b) delivery of goods or making available thereof to the recipient, in any other case, issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed. Where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shal
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
upply was made. In all other cases, invoice for supply of service should be issued within a period of 30 days from the date of supply of service. Q 47. What are the particulars to be mentioned on the invoices which are prescribed by the rules? Ans. The tax invoice should contain the following particulars (a) name, address and GSTIN of the supplier; (b) a consecutive serial number, not exceeding 16 characters, in one or multiple series, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolised as – and / respectively, and any combination thereof, 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 servic
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
y or a financial institution, including a non-banking financial 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 prescribed under rule 46 of CGST 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 inform
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
address of the recipient; (ii) address of delivery; (iii) name of the country of destination. Q 50. When can a registered person not issue a tax invoice? Ans. A registered person may not issue a tax invoice if the value of the goods or services or both supplied is less than two hundred rupees subject to the condition that (a) the recipient is not a registered person; and (b) the recipient does not require such invoice, and he shall issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies. Q 51. In what manner, should an invoice be issued? Ans. (1) The invoice shall be prepared in triplicate, in case of supply of goods, in the following manner: – (a) the original copy being marked as ORIGINAL FOR RECIPIENT; (b) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and (c) the triplicate copy being marked as TRIPLICATE FOR SUPPLIER. (2) The invoice shall be prepared in duplicate, in case of supply of services, in the following ma
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
in one or multiple series, in one or multiple series, containing alphabets or numerals or special characters -hyphen or dash and slash symbolised as – and / respectively, and any combination thereof, unique for a financial year; (c) date of its issue; (d) name, address and GSTIN or UIN, if registered, of the recipient; (e) HSN Code of goods or Accounting Code for services; (f) description of goods or services or both; (g) value of supply of goods or services or both taking into account discount or abatement, if any; and (h) signature or digital signature of the supplier or his authorized representative. Q 55. Can issue of a bill of supply be dispensed with in any circumstances ? Ans. Yes. A registered person may not issue a bill of supply if the value of the goods or services or both supplied is less than two hundred rupees subject to the condition that (a) the recipient is not a registered person; and (b) the recipient does not require such bill of supply, and he shall issue a consoli
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
UIN, if registered, of the recipient; (e) description of goods or services; (f) amount of advance taken; (g) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess); (h) amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory tax or cess); (i) place of supply along with the name of State and its code, in case of a supply in the course of inter-State trade or commerce; (j) whether the tax is payable on reverse charge basis; and (k) signature or digital signature of the supplier or his authorized representative. Q 59. What should be done in case a receipt voucher is issued, but subsequently no supply takes place? Ans. Where, on receipt of advance payment with respect to any supply of goods or services or both the registered person issues a receipt voucher, but subsequently no supply is made and no tax invoice is issued in pursuance thereof, the said registered person may issue to the person who had
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
charge basis) shall issue a payment voucher at the time of making payment to the supplier. Q 62. When should an invoice be issued in case of continuous supply of goods? Ans. 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. Q 63. When should an invoice be issue in case of continuous supply of services? Ans. In case of continuous supply of services,- (a) where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment; (b) where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment; (c) where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that e
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
he amount of tax which shall form part of the price at which such supply is made. Q 68. What is a Credit Note? Ans. A Credit note is a document evidencing reduction in value of a particular supply made earlier. Every credit note has to be linked to an invoice issued earlier. A credit note enables a supplier to reduce his output tax liability in relation to the invoice issued earlier. Q 69. When can a supplier issue a credit note? Ans. (1). Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as is prescribed under Rules. (2). Any registered person who issues a
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
h supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note containing such particulars as is prescribed under the rules. (2) 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 debit note in the return for the month during which such debit note has been issued and the tax liability shall be adjusted in the prescribed manner. Q 72. Does the term Debit Note include a supplementary invoice? Ans. Yes. For the purposes of this Act, the expression debit note shall include a supplementary invoice. Q 73. What should be the contents of a revised invoice? Ans. A revised tax invoice, credit or debit note shall contain the following particulars (a) the word Revised Invoice , wherever applicable, indicated prominently; (b) name, address and GSTIN of the supplier; (c) nature of the document; (d) a consecutive serial number not exceeding 16 characters, in o
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
s. An ISD invoice or, as the case may be, an ISD credit note issued by an Input Service Distributor shall contain the following details:- (a) name, address and GSTIN of the Input Service Distributor; (b) a consecutive serial number not exceeding 16 characters, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolised as , – , / , respectively, and any combination thereof, unique for a financial year; (c) date of its issue; (d) name, address and GSTIN of the recipient to whom the credit is distributed; (e) amount of the credit distributed; and (f) signature or digital signature of the Input Service Distributor or his authorized representative: Provided that where the Input Service Distributor is an office of a banking company or a financial institution, including a non-banking financial company, a tax invoice shall include any document in lieu thereof, by whatever name called, whether or not serially numbered but containing the
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
r of supplier of common service and original invoice number whose credit is sought to be transferred to the Input Service Distributor; v. name, address and Goods and Services Tax Identification Number of the Input Service Distributor; vi. taxable value, rate and amount of the credit to be transferred; and vii. signature or digital signature of the registered person or his authorised representative. (2). The taxable value in the invoice issued under clause (1) shall be the same as the value of the common services. Q 77. When should delivery challans be issued? Ans. For the purposes of (a) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known, (b) transportation of goods for job work, (c) transportation of goods for reasons other than by way of supply, or (d) such other supplies as may be notified by the Board, the consigner may issue a delivery challan, serially numbered, not exceeding 16 characters in lieu of invoice at t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =