Goods and Services Tax – GST – By: – Ashish Mittal – 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 suggestion of empowered GST council. Applicability Invoices b
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le 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. Removal involving movement of goods 2. Delivery or making available in other cases to the recipient Note: In relatio
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x 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 Supply-30 days/45 days in Banking Co./NBFC/Financial Institution from date of supply 2. Continuous Supply-within 30 days of each event specified in the contract as date of supply Special Points in different Situations: In respects to certain situations wherein the time of issue of invoice or certain sta
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ly 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 Recipient Recipient Last Date 30th Sept.(of Subsequent F.Y) or Date of Annual Return Whichever is Earlier When it Can't be Issued When incidence of tax & interest is passed N.A Disclosure Requirement Take th
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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 Supply shall include following details:- (a) Name, address and GSTIN/ Unique ID Number (recipient) of supplier & recipient; (b) A consecutive unique serial number of F.Y; (c) Date of its issue; (d) HSN code of goods or Accounting Code of services; (e) Description o
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ing 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 NBFC shall include: 1. All above Information. 2. Not necessarily Serially Numbered 3. Any other Documents Instead of Tax Invoice. For GTA: Consignment Note Shall be deemed to be Tax Invoice For passenger transport: Ticket shall substitute tax Invoice Certain Common Points: Rule-2 Manner of Issuing Invoice A
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