contact us

INVOICING UNDER GST REGIME

  • — By CA. Ena Kansal                                                                              

 (The author is a Practicing Chartered Accountant and a renowned Trainer with an exposure in Direct and Indirect Taxes. She has delivered several presentations at ICAI, ICSI and other professional forums on topics pertaining to GST. Author can be reached at gst@apurvkansal.co.in or 8109825451)

 (Only for Private Circulation)

Invoicing is a crucial aspect of tax compliance for every business. Invoices being an important document need to be properly issued as per the statue for uninterrupted flow of credit as well as compliance of law in force and for this it is essential to be aware of the rules and provisions of invoicing under GST. Let us understand these in detail.

TYPES OF INVOICE-

In the GST regime, two types of invoices will be issued:

Tax Invoice Bill of Supply
Should be issued by a registered person supplying taxable goods or service Should be issued by a registered person:-
Supplying exempted goods or service
Paying tax under Composition scheme

TIME OF ISSUE OF INVOICE-

  1. Time limit for issue of tax invoice-
Supply of Taxable Goods The tax invoice must be issued before or at the time of- Removal of goods, where supply involves movement of goods
OR
Delivery of goods to the recipient, where supply does not require movement of goods
Supply of Taxable Services The tax invoice must be issued within 30 days from the date of supply of the service.
Where the supplier is an insurer, bank or any financial institution including NBFCs, the invoice must be issued within 45 days of the supply of service.

Note: In case a person paying tax on reverse charge receives goods or services or both from an unregistered supplier, the receiver must issue an invoice on the date of receipt of goods or services or both.

  1. Time limit for issue of invoice for Continuous Supply of Goods and Services-
  • 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.
  • Continuous Supply of Services-
  • Where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment.
  • Where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment.
  • Where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that event.
  1. Time limit for issue of invoice in Special Cases-
  • Ceasing of Contract-

Where supply of service ceases under a contract before the completion of the supply, the invoice shall be issued at the time when supply ceases. The invoice shall be issued to the extent of supply made before cessation.

  • Sale on Approval Basis-

Where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued before or at the time of supply or six months from the date of removal, whichever is earlier.

CONTENTS AND SPECIAL PROVISIONS FOR INVOICES-

  1. Tax invoice:-

A tax invoice referred to in section 31 shall be issued by the registered person containing the following particulars:-

  • Name, address and GSTIN of the supplier;
  • A consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolized as “-” and “/” respectively, and any combination thereof, unique for a financial year;
  • Date of its issue;
  • Name, address and GSTIN/ Unique ID Number, if registered, of the recipient;
  • If unregistered and taxable supply of Rs 50,000 or More – then name, address of recipient & delivery address, state name and code.
  • HSN code of goods or Accounting Code of services;
  • Description of goods or services;
  • Quantity in case of goods and unit or Unique Quantity Code thereof;
  • Total value of supply of goods or services or both;
  • Taxable value (after discount and abatement, if any) of goods or services or both;
  • Rate of tax (CGST, SGST, IGST, UTGST or Cess);
  • Amount of tax (CGST, SGST, IGST, UTGST or Cess);
  • In interstate supply—place of supply with state name;
  • Address of delivery where the same is different from the place of supply;
  • Whether the tax is payable on reverse charge basis;
  • Signature or digital signature of the supplier or his authorized representative.

In case of Exports of Goods or Services, the invoice shall carry an endorsement “SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST” or “SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF IGST”, as the case may be, and shall, in lieu of the details specified in clause (e), contain the following details:

  • (i) Name and address of the recipient;
  • (ii) Address of delivery;
  • (iii) Name of the country of destination; and
  • (iv) Number and date of application for removal of goods for export

The Commissioner may, on the recommendations of the Council, by notification, specify the class of registered persons who are required to mention or not required to mention the HSN code for goods or Accounting code for services by notification.

  1. Manner of Issuing Invoice:-
  • In case of supply of goods:

The invoice shall be prepared in triplicate, in the following manner:–

  • The original copy being marked as ORIGINAL FOR RECIPIENT;
  • The duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and
  • The triplicate copy being marked as TRIPLICATE FOR SUPPLIER.
  • In case of supply of services:

The invoice shall be prepared in duplicate, in the following manner:-

(a) The original copy being marked as ORIGINAL FOR RECIPIENT; and

(b) The duplicate copy being marked as DUPLICATE FOR SUPPLIER.

  • The serial number of invoices issued during a tax period shall be furnished electronically through the Common Portal in FORM GSTR-1.
  1. Invoices not required to be issued below specified amount:-
  • A registered person may not issue a tax invoice / bill of supply if the value of the goods or services or both supplied is less than two hundred rupees. If the recipient is a registered person or the recipient requires a tax invoice / bill of supply then the supplier needs to issue a tax invoice.
  • Such person also has to issue a consolidated tax invoice / bill of supply for such supplies at the close of each day in respect of all such supplies.
  1. Bill of Supply in place of Tax Invoice:-

A person who is making sales of exempted goods or services or paying tax under composition scheme has to issue Bill of Supply instead of a tax invoice. Such bill of supply should contain the following details-

  • Name, address and GSTIN of the supplier;
  • A consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolized as “-” and “/” respectively, and any combination thereof, unique for a financial year;
  • Date of its issue;
  • Name, address and GSTIN/ Unique ID Number, if registered, of the recipient;
  • HSN code of goods or Accounting Code of services;
  • Description of goods or services or both;
  • Total value (after discount and abatement) of goods or services or both;
  • Signature or digital signature of the supplier or his authorized representative.
  1. Receipt Voucher:-

On receipt of advance payment with respect to supply of goods or services the registered person is required to issue a receipt voucher evidencing receipt of such payment. Such receipt should contain the following details-

  • Name, address and GSTIN of the supplier.
  • A consecutive serial number containing alphabets or numerals or special characters -hyphen or dash and slash symbolized as “-” and “/”respectively, and any combination thereof, unique for a financial year.
  • Date of its issue.
  • Name, address and GSTIN or UIN, if registered, of the recipient.
  • Description of goods or services.
  • Amount of advance taken.
  • Rate of tax (CGST, SGST, IGST, UTGST or cess);
  • Amount of tax (CGST, SGST, IGST, UTGST or cess);
  • 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.
  • Whether the tax is payable on reverse charge basis.
  • Signature or digital signature of the supplier or his authorized representative.

If after receiving of advance payment no supply is made and no tax invoice is issued then the said registered person may issue to the person who had made the payment, a refund voucher against such payment.

  1. Supplementary tax invoice and Credit or debit notes:-

Debit note / supplementary invoice or credit note:-

To revise the taxable value or GST charged on an invoice already issued, one may issue a debit note or credit note-

  • Debit note / supplementary invoice – Issued when the taxable value and / or GST charged on the invoice must be increased.
  • Credit note –Issued when the taxable value and / or GST charged on the invoice must be reduced or in case goods are returned.
  • Credit note must be issued on or before 30thSeptember following the end of the financial year in which such supply was made or the date of filing of the relevant annual return, whichever is earlier.

Revised Invoices:-

  • A registered person may issue revised invoices within one month from the date of issue of certificate of registration for the invoices which are issued after effective date of registration but before date of issue of registration certificate.
  • Such person may issue a consolidated revised tax invoice in respect of all taxable supplies made to a recipient who is not registered in GST.

A revised tax invoice referred to in section 31 and credit or debit note referred to in section 34 shall contain the following particulars –

(a) The word “Revised Invoice” indicated prominently

(b) Name, address and GSTIN of the supplier;

(c) Nature of the document;

(d) A consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolized as “-” and “/” respectively, and any combination thereof, unique for a financial year;

(e) Date of its issue;

(f) Name, address and GSTIN/ Unique ID Number, if registered, of the recipient;

(g) If unregistered—then name, address of recipient & delivery address, state name and code;

(h) Serial number & date of the corresponding tax invoice or bill of supply;

(i) Taxable value of goods or services, rate of tax and the amount of the tax credited or debited to the recipient;

(j) Signature or digital signature of the supplier or his authorized representative.

 

In case of inter-State supplies, where the value of a supply does not exceed Rs. 2,50,000, a consolidated revised invoice may be issued separately in respect of all recipients located in a State, who are not registered under the Act.

  1. Tax Invoice in Special Cases:-
  • A tax invoice issued by an Input Service Distributor (ISD) shall contain the following details

(a) Name, address and GSTIN of the ISD

(b) A consecutive serial number 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 ISD or his authorized representative.

Where the Input Service Distributor is an office of a banking company or a financial institution, including a non-banking financial company, a tax invoice shall include any document in lieu thereof, by whatever name called, whether or not serially numbered but containing the information as prescribed above.

  • For Insurer or a Banking Company or a Financial Institution including NBFC

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.

  • For Goods Transport Agency:

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 person liable for paying tax whether as consignor, consignee or goods transport agency and also containing other information as prescribed under rule 1.

  • For Passenger Transport Agency:

Tax invoice shall include ticket in any form, by whatever name called, whether or not serially numbered, and whether or not containing the address of the recipient of service but containing other information as prescribed under rule 1.

  1. Transportation of goods without issue of invoice:-
  • In following cases goods may be transported without issuance of invoice-

(a) Supply of liquid gas where the quantity is not known at the time of removal from place of supplier,

(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 consigner may issue a delivery challan, serially numbered, in lieu of invoice at the time of removal of goods for transportation, containing 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 – (CGST, SGST, IGST, UTGST or cess);

(viii) Place of supply, in case of inter-State movement, and

(xi) Signature.

  • 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.

  • Where goods are being transported on a delivery challan in lieu of invoice, the same shall be declared in FORM [WAYBILL].
  • Where the goods being transported are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of goods for the purpose of supply, the supplier shall issue a tax invoice after delivery of goods.
  • Where the goods are being transported in a semi knocked down or completely knocked down condition,

(a) The supplier shall issue the complete invoice before dispatch of the first consignment;

(b) The supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;

(c) Each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and

(d) The original copy of the invoice shall be sent along with the last consignment.

CONCLUSION-

Flow of Tax credit will be dependent on the way how invoices are made. Changes in invoicing software would be required for proper collection of data for preparation of invoices and uploading of the same in the returns.

Invoicing in GST will be vital for both the supplier and recipient. Proper invoicing can be done only if proper sales order/purchase orders are made. While preparing invoice we need to ensure that correct GSTIN of the buyer is mentioned which ensure free flow of credit.


Post a Comment