Glimpse of Invoices Revised Model GST Law
By: – Ashish Mittal
Goods and Services Tax – GST
Dated:- 13-2-2017
Background:
The esteemed vision of Hon'ble Prime Minister to create a digital and paper less economy cannot be crystalize without the digitalization of documentation and removal of hurdle of hard document. With the aforementioned vision, targets are being set out and focus shifting towards digital economy which is clearly evident through its impact on current tax regimes via various modification in current tax laws. Keeping the same in mind great emphasis have been given in draft Model GST model Law (hereinafter referred to as “MGL”) while drafting various provisions relating to invoices under the CHAPTER- VII with four notified sections ranging from Section 28 to Section 31 read with separate set of rules and Performa of Invoices as revised on 25th November 2016 with suitable modification from the earlier draft by understanding the view of industry and suggesti
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upply
1
Supplying Taxable Goods
Yes
Yes
Yes
No
2
Supplying Taxable Services
Yes
Yes
Yes
No
3
Supplying Non-Taxable Goods
No
Yes
No
Yes
4
Supplying Non-Taxable Services
No
Yes
No
Yes
5
Paying Tax Under Sec. 9
No
Yes
No
Yes
For Content of Each Invoice Refer Infra mentioned content list.
Legal Content of Various Invoices:
Once the applicability for various invoices t different situation is determined now it is very much relevant for the legal support of the aforementioned tabulated content. In this regards following table of legal content have been inserted to summarize the same:
Statement showing Table summarizing Various legal content in respect to Issuance of Invoice under Sec. 28 read with Invoice Rules
S.No.
Registered Taxable Person involved in following type of Supply
Types of Invoice
When to issue Tax Invoice?
When to issue Bill of Supply
Revised Invoice
Supplementary Invoice
1
Supplying Taxable Goods
Before or at the time of
1. Remov
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ion to Certain Special category of services being notified, deeming provisions have been inserted to consider other documents as tax invoice (Discussed later in details) (Section 28(2))
Not Applicable
Can Issue if
1. Taxable Value
2. Tax Amount
is less than actual value of supply
3
Supplying Exempted Goods
Not Applicable
A bill of Supply shall be issued in lieu of Tax Invoice
No such document is required where value of supply is less than ₹ 100 unless the recipient require the same.
Not Applicable
Not Applicable
4
Supplying Exempted Services
Not Applicable
Not Applicable
Not Applicable
5
Composition Supplier Under Sec. 9
Not Applicable
Not Applicable
Not Applicable
For Content of Each Invoice Refer Infra mentioned content list.
Special Note 1: In Case of Supply of Service Invoice shall be issued in:
1. Normal Supply30 days/45 days in Banking Co./NBFC/Financial Institution from date of supply
2. Continuous Supplywithin 30 days of each event specified
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ecial Note-1 above)
3. For Completion of an eventbefore or after event is completed subject to 30/45 days limit (Refer Special Note-1 above)
4. Cancellation of Supply of Servicewhen supply ceases valued up to the cessation date
Note: CG/SG may specify continuous supply of service as deemed fit.
5
Goods sent or taken on approval or sale or return or similar terms
At or before time when supply occurrence took place
or
6 month from removal
whichever is earlier
Concept of Debit and Credit Note (Section-24):
A summarized table stating various question is comparison form in relation to debit and credit note have inserted herewith for quick reference to the issue and is various aspects:
Statement Showing All about Debit and Credit Note (Section-24)
Basis
Tax Invoice issued for Goods or Service and Taxable Value or Tax is in
Excess of Actual Supply
Deficient of Actual Supply
What Document to be Issued
Credit Note
Debit Note
Who Will Issue
Supplier
Supplier
To Whom
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GST” or “SUPPLY MEANT FOR EXPORT UNDER BOND WITHOUT PAYMENT OF IGST” shall be prominently mentioned on the invoice;
(iii) Name of the country of destination; and
(iv) Number and date of application for removal of goods for export [ARE-1].
(e) HSN code of goods or Accounting Code of services;
(f) Description of goods or services;
(g) Quantity in case of goods and unit or Unique Quantity Code thereof;
(h) Total value & taxable value (after discount and abatement) of goods or services;
(i) Rate and amount of tax (CGST, SGST or IGST);
(j) In interstate supplyplace of supply with state name
(K) Place of delivery where the same is different from the place of supply;
(l) Whether the tax is payable on reverse charge;
(m) The word “Revised Invoice” or “Supplementary Invoice”, at prominent place where
Applicable with date & invoice number of original invoice; and
(n) Signature or digital signature of the supplier or his authorized representative.
As Per Rule-3 Bill of
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tax credited
Or debited to the recipient
(g) Signature or digital signature of the supplier or his authorized representative.
(h) Nature of the document;
(i) If unregistered-then name, address of recipient & delivery address, state name and code;
(j) S.No. & date of the corresponding tax invoice or bill of supply
Note: 1. Revised Invoice can be issued if registration granted previous to issuance of RC
2. Consolidated Revised invoice for interstate supply up to ₹ 250 can be issued.
As Per Rule-5 Input Service Distributor (ISD) Invoice shall include following details:-
(a) Name, address and GSTIN/ Unique ID Number (recipient) of ISD & recipient of credit;
(b) A consecutive unique serial number of F.Y;
(c) Date of its issue;
(d) Amount of credit distributed;
(e) Name, address and GSTIN of supplier whose credit distributed
(f) Signature or digital signature of the supplier or his authorized representative.
For Banking Company, Financial Institution and
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