GST – GST Law and Procedure – 013 – Chapter Thirteen Tax Invoice and other such instruments in GST Introduction Generally speaking, an invoice is a commercial instrument issued by a seller to a buyer. It identifies both the trading parties and lists, describes, and quantifies the items sold, shows the date of shipment and mode of transport, prices and discounts, if any, and delivery and payment terms. In certain cases, (especially when it is signed by the seller or seller s agent), an invoice serves as a demand for payment and becomes a document of title when paid in full. Types of invoice include commercial invoice, consular invoice, customs invoice, and proforma invoice. It is also called a bill of sale or contract of sale. Invoice under GST Under the GST regime, an invoice or tax invoice means the tax invoice referred to in section 31 of the CGST Act, 2017. This section mandates issuance of invoice or a bill of supply for every supply of goods or services. It is not necessary that
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ply is less than ₹ 200/- subject to specified conditions. Importance of tax invoice under GST Under GST a tax invoice is an important document. It not only evidences supply of goods or services, but is also an essential document for the recipient to avail Input Tax Credit (ITC). A registered person cannot avail input tax credit unless he is in possession of a tax invoice or a debit note. GST is chargeable at the time of supply. Invoice is an important indicator of the time of supply. Broadly speaking, the time of supply of goods or services is the date of issuance of invoice or receipt of payment whichever is earlier. However, a special procedure for payment of tax has been prescribed for registered persons (other than composition dealers) supplying goods. Such category of persons (suppliers of goods other than composition dealers) need to pay GST only at the time of issue of invoice irrespective of when they receive payment. Thus the importance of invoice under GST cannot be ove
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Invoice rules makes it mandatory for an invoice to have following fields (only applicable field are to be filled): a) name, address and GSTIN of the supplier; b) a consecutive serial number, 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 services; g) description of goods or services; h) quantity in case of goods and unit or Unique Quantity Code thereof; i) total value of supply of goods or services or both; j) taxable value of supply of goods or services or both taking into account discount o
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dress 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 Services A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as has been prescribed in the Invoice Rules. The Government may, on the recommendations of the Council, by notification and subject to such conditions as may be mentioned therein, specify the categories of services in respect of which- a) any other document issued in relation to the supply shall be deemed to be a tax invoice; or b) tax invoice may not be issued. Thus it can be seen that in case of goods, an invoice has
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ble for registration. Thus there would be a time lag between the date of grant of certificate of registration and the effective date of registration. For supplies made by such person during this intervening period, the law enables issuance of a revised invoice, so that ITC can be availed by the recipient on such supplies. Receipt Voucher/ Refund voucher on receipt of advance payment Whenever a registered person receives an advance payment with respect to any supply of goods or services or both, he has to issue a receipt voucher or any other document, containing such particulars as has been prescribed in the Invoice Rules, evidencing receipt of such payment. Where any such receipt voucher is issued, but subsequently no supply is made and no tax invoice issued, the registered person who has received the advance payment can issue a refund voucher against such payment. A receipt voucher needs to contain the following particulars: a) name, address and GSTIN of the supplier; b) a consecutive
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the nature of supply is not determinable, the same shall be treated as inter-State supply. Invoice and payment voucher by a person liable to pay tax under reverse charge A registered person liable to pay tax under reverse charge (both for supplies on which tax is payable under reverse charge mechanism and supplies received from unregistered persons) has to issue an invoice in respect of goods or service or both received by him. Such a registered person in respect of such supplies also has to issue a payment voucher at the time of making payment to the supplier. Invoice in case of continuous supply of goods 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. Invoice in case of continuous supply of services In case of continuous supply of services, where, a) the due date of payment is ascerta
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er. Amount of tax to be indicated in invoice Where any supply is made for a consideration, every person who is liable to pay tax for such supply has to 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. Credit and Debit Notes In cases where tax invoice has been issued for a supply and subsequently it is found that the value or tax charged in that invoice is more than what is actually payable/chargeable or where the recipient has returned the goods, the supplier can issue a credit note to the recipient. A registered person who issues such a credit note has to declare details of such credit note in the return for the month during which such credit note has been issued but not later than September following the end of the financial year in which such supply was made or date of furnishing of the relevant annual return whichever is earlier. The tax liability of
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re of the document; d) a consecutive serial number 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; e) date of issue of the document; f) name, address and GSTIN or UIN, if registered, of the recipient; g) 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; h) serial number and date of the corresponding tax invoice or, as the case may be, bill of supply; i) value of taxable supply of goods or services, rate of tax and the amount of the tax credited or, as the case may be, debited to the recipient; and j) signature or digital signature of the supplier or his authorized representative. Manner of issuing invoice 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 d
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it is distributed; e) amount of the credit distributed; and f) signature or digital signature of the Input Service Distributor or his authorized representative. Tax Invoice in special cases Where the Input Service Distributor is an office of a banking company or a financial institution, including a nonbanking financial company, a tax invoice shall include any document in lieu thereof, by whatever name called, whether or not serially numbered but containing the prescribed information. 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 1 of Invoice Rules. Where the supplier of taxable service is a goods transport agency sup
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he following cases it is permissible for the consignor to issue a delivery challan in lieu of invoice at the time of removal of goods: 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 delivery challan, serially numbered not exceeding 16 characters, in one or multiple series, shall contain the following details: i. date and number of the delivery challan, ii. name, address and GSTIN of the consigner, if registered, iii. name, address and GSTIN or UIN of the consignee, if registered, iv. HSN code and description of goods, v. quantity (provisional, where the exact quantity being supplied is not known), vi. taxable value, vii. tax rate and tax amount – central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is
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