(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 firstname.lastname@example.org or 8109825451)
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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-
|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
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.
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.
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-
A tax invoice referred to in section 31 shall be issued by the registered person containing the following particulars:-
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:
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.
The invoice shall be prepared in triplicate, in the following manner:–
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.
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-
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-
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.
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-
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.
(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.
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.
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.
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.
(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,
(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
(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.
(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.
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.