CA. Nayan Jain (Associate member of Team GST Cornor)

Invoicing is a crucial aspect of tax compliance for every business. Input tax credit can be availed on the basis of Invoice, Tax Invoice, Debit note, ISD Invoice, ISD credit note or other documents as prescribed. One of the important conditions of ITC rule is “Input tax credit shall be availed by a registered person only if all the applicable particulars as prescribed in Chapter – Invoice Rules are contained in the said document, so it is essential to be aware of the provisions & rules of invoice under GST.

Below information/ detail is based on The Central Goods & Service tax Act, 2017 and Final Rule on Invoice, Debit & Credit Note-Rules as on 23rd May, 2017.

Let us understand this topic in details:

TYPES OF DOCUMENTS TO BE ISSUED FOR THE SUPPLY MADE IN THE GST REGIME

TAX INVOICE OR INVOICE: – It is a document that shall be issued by the registered person on making taxable supplies of goods or service. Tax invoice shall include any revised invoice issued by the supplier in respect of supply made earlier.

BILL OF SUPPLY: If a registered taxable person supplying Exempted goods/services or paying tax under composition scheme (sec-10), then the supplier shall issue bill of supply instead of Tax Invoice.

RECEIPT VOUCHER: Registered person shall issues a receipt voucher on receipt of advance payment with respect to any supply of goods or services

REFUND VOUCHER: When no supply and no invoice is issued in pursuance of advance payment received (receipt voucher), a refund voucher is issued to the person who made the payment

PAYMENT VOUCHER: In case a registered person paying tax on reverse charge basis or receives goods or services from an unregistered supplier, the registered person must issue an invoice on the date of receipt of goods or services and shall also issue a payment voucher at the time of making payment to supplier.

Let summarize the above concept in below table:

Situation Types of document issue
Taxable Supply other than opt for composition scheme Invoice/Tax Invoice
Supply under Composition Scheme Bill of Supply
Exempt Supply (exempted goods or service) Bill of Supply
Non Taxable Supply Bill of Supply
On receipt of Advance Payment Receipt Voucher
No supply is made against advance payment Refund Voucher
Person liable to pay tax under Reverse Charge Invoice/Tax Invoice
At the time of making Payment to Supplier (in case of RCM supply) Payment Voucher
Goods Sent on approval basis at the time of removal Delivery Challan

TIME LIMIT FOR ISSUING TAX INVOICE

IN CASE OF TAXABLE SUPPLY OF GOODS

Particulars Timing of Issue of Invoice/Doc.
Where the supply involves movements of goods before or at the time of removal of goods for supply to recipient
Where the supply does not involves movements of goods before or at the time of delivery of goods or making available thereof to the recipient

IN CASE OF TAXABLE SUPPLY OF SERVICES

– Before provision of services; or

– After provision of service but within a specified time i.e 30 days from the date of taxable supply of services.

IN CASE OF CONTINUOUS SUPPLY OF GOODS

– Where successive statements of accounts or successive payments are involved, before or at the time of each successive statement are issued or as the case may be, each such payment is received.

IN CASE OF CONTINUOUS SUPPLY OF SERVICES

Particulars Timing of Issue of Invoice/Doc.
Where the due date of payment is ascertainable from the contract on or before the due date of payment
Where the due date of payment is not ascertainable from the contract before or at the time of receiving the payment
Where the payment is linked to the completion of an event on or before the date of completion of an event

IN CASE OF CESSATION OF SERVICES

– The invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply made before such cessation.

IN CASE OF GOODS REMOVED BEFORE SUPPLY OF GOODS (GOODS SENT ON APPROVAL BASIS)

Particulars Timing of Issue of Invoice/Doc.
Before or at the time of supply i.e approval to accept supply Whichever is earlier
Six months from the date of remova

IN CASE OF SPECIAL SERVICES

(INSURER, BANKING COMPANY, FINANCIAL INSTITUTION INCL. NBFC, TELECOM OPERATOR OR OTHER CLASS OF SUPPLIER AS MAY BE NOTIFIED)

– Before provision of services; or

– After provision of service but within a specified time i.e 45 days from the date of taxable supply of services.

IN CASE OF SUPPLIES OF SERVICE BETWEEN DISTINCT PERSON (SPECIFIED IN SECTION 25)

(INSURER, BANKING COMPANY, FINANCIAL INSTITUTION INCL. NBFC, TELECOM OPERATOR OR OTHER CLASS OF SUPPPLIER AS MAY BE NOTIFIED)

– Above supplier making taxable supplies of services between distinct person as specified in Section 25, may issue tax invoice:

– Before or at the time such supplier records the same in his books of account; or

– Before the expiry of the quarter during which the supply was made.

IN CASE OF REVISED TAX INVOICES

– Every registered person who has been granted registration with effect from a date earlier than the date of issuance of certificate of registration may issue a REVISED TAX INVOICES from the effective date of registration till the date of issuance of registration certificate.

– In a transaction of Intrastate Supply, such person may also issue a consolidated revised tax invoice in respect of all taxable supplies made to a recipient who is not registered.

– In a transaction of Inter-state Supply, where the value of supply does not exceed Rs.2.50 lakhs a consolidated revised tax invoice is to be issued separately for each of the recipients in a particular State who are not registered.

IN CASE OF SUPPLIES NOT EXCEEDING Rs.200/-

– A registered person is not required to issue a tax invoice in respect of supply of goods or services or both where the value therein does not exceed a sum of Rs.200/- subject to the following conditions, namely: –

– The recipient is not a registered person; and

– The recipient does not require such invoice,

– However, in respect of such supplies the supplier shall issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies.

IN CASE OF GOODS ARE BEING TRANSPORTED IN A SEMI KNOCKED DOWN OR COMPLETELY KNOCKED DOWN CONDITION

– The supplier shall issue the complete invoice before dispatch of the first consignment

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

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

– The original copy of the invoice shall be sent along with the last consignment

MANNER OF ISSUING TAX INVOICE

IN CASE OF SUPPLY OF GOODS

The Invoice shall be prepared in Triplicate:

Supply of Goods

IN CASE OF SUPPLY OF SERVICES

The Invoice shall be prepared in Duplicate:

Supply of Services

Note: The serial number of invoices issued during a tax period shall be furnished in Outward Supply Return i.e. FORM GSTR-1

FORMAT OF TAX INVOICE

Form GST INV – 1

SERIAL NO.:

DATE OF INVOICE:

GSTIN:

NAME OF SUPPLIER:

ADDRESS:

DETAIL OF RECEIPENT
GSTIN/UIN:
NAME OF RECEIPEINT:
ADDRESS OF RECIPEINT:
STATE:
STATE CODE:
ADDRESS OF DELIVERY/PLACE OF SUPPLY
PLACE OF SUPPLY:
STATE:
ADDRESS OF DELIVERY:
STATE:
STATE CODE:
Rs. in…..
Sr. No.
HSN/
SAC
Descr-iption of goods & service
Unit
Qty
Rate
Total Value
Discount/
Abatement
Taxable Value
CGST
SGST
IGST
CESS
Gross Amt.
 
 
 
 
 
 
 
 
 
%
Amt
%
Amt
%
Amt
%
Amt
 
1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Freight
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Insurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Cha.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
XXX
XXX
XXX
 
XXX
 
XXX
 
XXX
 
XXX
XXXXXX
 
 
Total Invoice Value (In Words)
 
 
Taxable Payable on Reverse Charge
Y/N

Invoice Reference Number:

Signature

Name of the Signatory

Designation/Status

Date:

A registered person on making taxable supplies of goods or service shall issue a tax invoice, which shall contain the following details:-

Particulars Check
Name, address & GSTIN of the supplier Y
A consecutive serial number, can be in one or multiple series but unique for a FY

(NOT EXCEEDING SIXTEEN CHARACTER)

Y
Date of its issue Y
Name, address & GSTIN/UIN of the recipient, if registered Y
Name, address of the recipient and address of delivery along with name of state & state code, if recipient is un-registered & where value of taxable supply is Rs.50,000 or more  
HSN Code or SAC Y
Description of goods or service  
Quantity and unit in case of goods Y
Total value of supply, Discount or Abatement, Taxable value of supply Y
Rate of tax & amount of tax charged Y
Place of supply along with the name of state, in case of supply in the course of interstate trade or commerce Y
Address of delivery where same is different from the place of supply Y
Whether tax is payable on reverse charge basis Y
Signature or digital signature of supplier or his authorised representatives Y
In case of Reverse Charge Mechanism, invoice shall bear signature or digital signature of supplier or his authorised representatives Y

POINTS TO BE NOTED:-

EXPORT OF GOODS OR SERVICES

– In case of exports of goods or services, the invoice shall carry an endorsement   “SUPPLY MEANT FOR EXPORT ON PAYMENT OF INTEGRATED TAX” or “SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”  as the case may be and shall in lieu of the details specified above contain the following details:

– Name and address of the recipient;

– Address of delivery; and

– Name of the country of destination.

RELAXATION & EXTRA CONTENT OF TAX INVOICE OR OTHER DOCUMENT IN SPECIAL CASES

1. Supplier of taxable service is a Insurer or Banking Company or Financial Institution incl. NBFC

– Relaxation of serial number and address of the recipient of taxable service is given in case of above supplier.

– Whether invoice or other document issued or made available physically or electronically.

2. Supplier of taxable service is a GTA supplying services in relation to transportation of goods by road in a goods carriage.

– The tax invoice or other document shall also contain the following details:-

– 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

3. Supplier of taxable service is supplying passenger transportation service

– Relaxation of serial number and address of the recipient of taxable service is given in case of above supplier.

CONTENT OF BILL OF SUPPLY

If a registered taxable person supplying Exempted goods/services or paying tax under composition scheme (sec-10), then the supplier shall issue bill of supply instead of Tax Invoice which shall contains the following details:

Particulars Check
Name, Address & GSTIN of the supplier Y
A consecutive serial number, can be in one or more multiple series but unique for a FY (NOT EXCEEDING SIXTEEN CHARACTER) Y
Date of its issue Y
Name, Address & GSTIN/UIN of the recipient Y
HSN Code or SAC Y
Description of goods or service Y
Total Value Y
Discount or Abatement Y
Taxable Value Y
Signature or digital signature of supplier or his authorised representatives Y

POINTS TO BE NOTED:-

EXPORT OF GOODS OR SERVICES

– In case of exports of goods or services, the bill of supply invoice shall carry an endorsement “SUPPLY MEANT FOR EXPORT ON PAYMENT OF INTEGRATED TAX” or “SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”  as the case may be and shall in lieu of the details specified above contain the following details:

– Name and address of the recipient;

– Address of delivery;

– Name of the country of destination; and

SUPPLIES NOT EXCEEDING Rs.200/-

– A registered person is not required to issue a bill of supply in respect of supply of goods or services or both where the value therein does not exceed a sum of Rs.200/- subject to the following conditions, namely: –

– The recipient is not a registered person; and

– The recipient does not require such invoice,

– However, in respect of such supplies the supplier shall issue a consolidated bill of supply for such supplies at the close of each day in respect of all such supplies.

Note: Provided further that any tax invoice or any other similar document issued under any other Act for the time being in force in respect of any non-taxable supply shall be treated as bill of supply for the purposes of the Act.

CONTENT OF RECEIPT VOUCHER

Registered person shall issue a receipt voucher on receipt of advance payment with respect to any supply of goods or services, which shall contain the following details:

Particulars Check
Name, Address & GSTIN of the supplier Y
A consecutive serial number can be in one or multiple series, unique for a FY

(NOT EXCEEDING SIXTEEN CHARACTER)

Y
Date of its issue Y
Name, Address & GSTIN/UIN of the recipient, if registered Y
HSN Code or SAC Y
Description of goods or service Y
Amount of advance taken Y
Rate and Amount of tax charged Y
Place of supply along with state name & state code, in case of interstate supply Y
Whether the tax is payable on reverse charge basis Y
Signature or digital signature of supplier or his authorised representatives Y

POINTS TO BE NOTED:-

Where at the time of receipt of advance;

– The rate of tax is not determinable; the tax shall be paid at the rate of 18%.

– Nature of supply is not determinable; the same shall be treated as Interstate Supply

CONTENT OF REFUND VOUCHER

A refund voucher shall be issued by the supplier, where no supply is made and no tax invoice is issued in respect of advance received with respect to taxable supply of goods or services, which shall contain the following details:-

Particulars Check
Name, Address & GSTIN of the supplier Y
A consecutive serial number can be in one or multiple series, unique for a FY

(NOT EXCEEDING SIXTEEN CHARACTER)

Y
Date of its issue Y
Name, Address & GSTIN/UIN of the recipient, if registered Y
Number & Date of receipt voucher issued Y
Description of goods or service in respect of which refund is made Y
Amount of refund made Y
Rate and Amount of tax paid in respect of such goods or service Y
Whether the tax is payable on reverse charge basis Y
Signature or digital signature of supplier or his authorised representatives Y

CONTENT OF PAYMENT VOUCHER

In case a registered person paying tax on reverse charge basis or receives goods or services from an unregistered supplier, the registered person must issue an invoice on the date of receipt of goods or services and shall also issue a payment voucher at the time of making  payment to supplier, which shall contains the following details:-

Particulars Check
Name, Address & GSTIN of the supplier Y
A consecutive serial number can be in one or multiple series, unique for a FY

(NOT EXCEEDING SIXTEEN CHARACTER)

Y
Date of its issue Y
Name, Address & GSTIN/UIN of the recipient, if registered Y
Description of goods or service Y
Amount paid Y
Rate of tax and amount of tax paid in respect of taxable goods or services Y
Place of supply along with the name of state and its code, in case of supply in the course of interstate trade or commerce Y
Signature or digital signature of supplier or his authorised representatives Y

CONTENT OF REVISED TAX INVOICE & CREDIT/DEBIT NOTES

Credit Notes: –

– A credit note can be issued by a supplier only in the following circumstances:

– The taxable value shown in the invoice exceeds the taxable value of the supply;

– The tax charged in the invoice exceeds the tax payable on the supply;

– The goods supplied are returned by the recipient;

– The goods/ services are found to be deficient.

– A credit note has to be issued by the supplier. A credit note issued by a recipient, says for accounting purposes, is not a relevant document for GST purposes.

– The issuance of credit note would not be relevant if the recipient treats the return of goods as an outward supply and raises a tax invoice in this regard.

– The details of the credit notes should be declared by the supplier in the Outwards Supply Return of the month of the issue of credit note. However, if not declared in that month, it can be declared in any return prior to September of the year following the year in which the original tax invoice was issued (or filing of annual return, whichever is earlier)

– No reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and interest on such supply has been passed on to any other person.

– Reduction in tax liability by a credit note, the same is permitted with a corresponding responsibility to ensure that the recipient of supply has made a corresponding downward revision in the claim of tax credit.

Debit Notes: –

– A debit note should be issued by a supplier in the following circumstances:

– The taxable value shown in the invoice is lesser than the taxable value of the supply;

– The tax charged in the invoice is less than the tax payable on the supply.

– A debit note has to be issued by the supplier. A debit note issued by a recipient, say for accounting purposes, is not a relevant document for GST purposes;

– The details of the debit note have to be declared by the supplier in the Outward Supply Return of the month of the issue of debit note. However, if not declared in that month, it can be declared in any return prior to September of the year following the year in which the original tax invoice was issued (or filing of annual return, whichever is earlier);

– Debit note includes a supplementary invoice.

– A revised tax invoice, credit or debit note issued by the supplier, which shall contain the following details:-

Particulars Check
Word Revised Invoice wherever applicable Y
Name, Address & GSTIN of the supplier Y
Nature of the document Y
A consecutive serial number can be in one or multiple series, unique for a FY

(NOT EXCEEDING SIXTEEN CHARACTER)

Y
Date of issue of document Y
Name, Address & GSTIN/UIN of the recipient, if registered Y
Name, Address of delivery along with the name of state & state code, if recipient is unregistered Y
Serial number and date of the corresponding tax invoice or bill of supply Y
Value of taxable supply of goods or services Y
Rate of tax Y
Amount of tax credited or debited to the recipient Y
Signature or digital signature of supplier or his authorised representatives Y

Note:- 

– Any invoice or debit note issued in pursuance of any tax payable in accordance with the provisions of section 74 or section 129 or section 130 shall prominently contain the words “INPUT TAX CREDIT NOT ADMISSIBLE”.

– Section 74:- Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful misstatement or suppression of facts

– Section 129:- Detention, seizure and release of goods and conveyances in transit

– Section 130:- Confiscation of goods or conveyances and levy of penalty

CONTENT OF TAX INVOICE IN CASE OF INPUT SERVICE DISTRIBUTOR

– The input service distributor shall distribute the credit of central tax, integrated tax, state, union territory tax by way of issue a document (ISD invoice or debit note or credit note) shall contain the following detail:-

Particulars Check
Name, Address & GSTIN of the Input Service Distributor Y
A consecutive serial number can be in one or multiple series , unique for a FY Y
Date of issue of document Y
Name, Address & GSTIN/UIN of the recipient Y
Amount of credit distributed Y
Signature or digital signature of the input service distributor or his authorised representatives Y

– If 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.

TRANSPORTATION OF GOODS WITHOUT INVOICE

The Rules prescribed lists out certain special circumstances for transportation of goods when tax invoice cannot be issued. In such situations, the rule also specifies the nature of other documents to be carried along with the goods under transportation. Please note that this list is illustrative and not exhaustive

NATURE OF SUPPLY

– Supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known,

– Transportation of goods for job work,

– Transportation of goods for reasons other than by way of supply like Goods sent on approval basis, or

– Such other supplies as may be notified by the Board,

DELIVERY CHALLAN

– The consigner may issue a delivery challan, serially numbered, not exceeding sixteen character, in one or multiple series; in lieu of invoice at the time of removal of goods for transportation, containing following details:

CONTENT OF DELIVERY CHALLAN

– Date and Number of the delivery challan

– Name, address and GSTIN of the consigner, if registered

– Name, address and GSTIN of the consignee, if registered

– Description of goods & HSN code

– Quantity (Provisional, where the exact quantity being supplied is not known)

– Taxable Value

– Tax rate & Tax amount, where the transportation is for supply to the consignee

– Place of supply, in case of interstate movement

– Signature

MANNER OF ISSUING DELIVERY CHALLAN

– The delivery challan shall be prepared in TRIPLICATE:

Delivery Challan

 OTHER POINTS

–  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.

GOODS ARE BEING TRANSPORTED IN A SEMI KNOCKED DOWN OR COMPLETELY KNOCKED DOWN CONDITION

– The supplier shall issue the complete invoice before dispatch of the first consignment

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

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

– The original copy of the invoice shall be sent along with the last consignment

AMOUNT OF TAX TO BE INDICATED IN TAX INVOICE OR OTHER DOCUMENTS

– Where any supply is made for a consideration, every person who is liable to pay tax for such supply shall 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.

– It means that if the supply price is Rs.1000/- which is inclusive of tax then every document must state that “the price of Rs.1000 includes – say IGST of Rs.180/- or alternatively say supply price is Rs.820 and IGST Rs.180 total Rs.1000.

Feedback/Suggestions are invited at gstcornor@gmail.com or whatsapp at 8989077616.

Disclaimer:

The views expressed in this article are of the CA. Nayan Jain, Nyn (Associate member of Team GST Cornor). The information cited in this article has been drawn from various provision of The CGST Act, Rules, ICAI publications and other various sources. While every effort has been made to keep, the information cited in this article error free, team GST Cornor does not take the responsibility for any typographical or clerical error which may have crept in while compiling the information provided in this article.

This article includes general information about legal issues and developments in the proposed law of GST in India. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this article to the fullest extent permitted by law. Do not act or refrain from acting upon this information without seeking professional legal counsel.

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One response to “Geared up for Billing under GST”

  1. Kirity Choudhary says:

    Dear sir,
    We are involved in construction of apartment. Please help us in following points:
    1. Construction of apartment building consisting of 32 units. 80% completed and remain unsold as on date. Likely to be sold after July 2017. Taxes on cement & steel paid before July 2017. What about input credit in this case?
    2. Whether apartment building units sold after obtaining completion certificate from municipal authority comes under preview of GST?

    Regards
    Kirity

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