Goods and Services Tax – GST – By: – Sandeep Rawat – Dated:- 1-3-2019 – SUPPLEMENTARY INVOICES AND THEIR USES Supplementary tax invoice has not been defined under GST law. Supplementary tax invoice is a type of invoice that is issued by a taxable person in case where any deficiency is found in a tax invoice already issued by a taxable person. It can be in form of a debit note or a credit note. ISSUANCE OF CREDIT NOTE A supplier of services is mandatorily required to issue a tax invoice. However, during the course of trade or commerce, after the invoice has been issued there could be situations like: The supplier has erroneously declared a value which is more than the actual value of the services provided. The supplier has erroneously declared a higher tax rate than what is applicable for the kind of the services supplied. The quality services supplied is not to the satisfaction of the recipient thereby necessitating a partial or total reimbursement on the invoice value. Any other simi
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r services or both provided. The supplier has erroneously declared a lower tax rate than what is applicable for the kind of the goods or services or both supplied. The quantity received by the recipient is more than what has been declared in the tax invoice. Any other similar reasons. In order to regularize these kinds of situations the supplier is allowed to issue what is called as debit note to the recipient. Any registered person who issues a debit note in relation to a supply of services, 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 such manner as may be prescribed DETAILS REQUIRED TO BE SHOWN There is no prescribed format for credit/debit note issued by a supplier. However, it must contain certain prescribed particulars. A supplementary tax invoice / or credit note under section 34 (1) or debit note under section 34 (3) read with Rule 6 of Revised Invoice Rules 2017,
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other like documents, the amount of tax. INPUT TAX CREDIT As per section 16(1) of GST law, no registered taxable person shall be entitled to the credit of any input tax in respect of any supply of goods and/or services to him unless he is in possession of tax invoice, debit note, supplementary invoice or such other taxpaying document as may be prescribed, issued by a supplier registered under the CGST/SGST or the IGST Act. As per section 16(1) & 16(2) of GST law, The registered person will be entitled to the credit of any input tax in respect of any supply of goods and/or services to him only if ALL the following five conditions are fulfilled: (a)Possession of tax paying document [Section 16(2)(a) read with rule 36 of the CGST Rules]ITC can be availed on the basis of any of the following documents: Invoice issued by a supplier of goods and/or services Invoice issued by recipient (receiving goods and/or services from unregistered supplier) along with proof of payment of tax (in case
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