Invoice, Credit and Debit Note
GST FAQ 3rd Edition – December, 2018 – GST Frequently Asked Questions (FAQs)
GST
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 fo
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in his books of account or before the expiry of the quarter during which the supply 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
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om any of the above provisions?
Ans. Yes. Where the supplier of taxable service is an insurer or a banking company 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 perso
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ll, in lieu of the details specified in clause (e) of rule 46 of CGST Rules, contain the following details:
(i) name and 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
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ply should containing 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) 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
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cial 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) 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 servic
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rtain sum of money to the supplier. Under GST, a registered person who is liable to pay tax under sub-section (3) or subsection (4) of section 9 (i.e. where the recipient is liable to discharge GST on reverse 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
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nt on every invoice?
Ans. Yes. Where any supply is made for a consideration, every person who is liable to pay tax for such supply shall prominently indicate in all documents relating to assessment, tax invoice and other like documents, the 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 sup
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plier issue a debit 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 be less than the taxable value or tax payable in respect of such 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 deb
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signature of the supplier or his authorized representative.
Q 74. Can an Input Service Distributor (ISD) issue a Invoice or credit note?
Ans. Yes. An ISD can issue an invoice or credit note.
Q 75. What should be the contents of an ISD Invoice/Credit Note issued by the ISD?
Ans. 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 representat
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eeding sixteen characters, 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;
iii. date of its issue;
iv. Goods and Services Tax Identification Number 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 busin
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ly, in case of inter-State movement, and
(ix) signature.
Q 79. What is the manner of issuing a delivery challan?
Ans. The delivery challan shall be prepared in triplicate, in case of supply of goods, in the following manner: –
(a) the original copy being marked as ORIGINAL FOR CONSIGNEE;
(b) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and
(c) the triplicate copy being marked as TRIPLICATE FOR CONSIGNER.
Q 80. When can an invoice cum bill of supply be issued?
Ans. Notwithstanding anything contained in rule 46 or rule 49 or rule 54, where a registered person is supplying taxable as well as exempted goods or services or both to an unregistered person, a single “invoice-cum-bill of supply” may be issued for all such supplies.
Q 81. When should a person in charge of a conveyance be necessarily carrying a Tax Invoice or a bill of supply?
Ans. The person-in-charge of the conveyance shall carry a copy of the tax invoice or the bill of supply issued in accordance wi
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