CS Ekta Maheshwari

CS Ekta Maheshwari

Rajya Sabha Passes four supplementary Bills without amendments

Finally, the wait is over, after an eight hour debate in Rajya Sabha(upper house of parliament), all four supplementary Bills were passed without any modification, which empowers the Government to roll out the GST in July 1, 2017 and make the nation a unified tax zone.

The four Bills are:

1. Central Goods and Services Tax Bill, 2017 (CGST Bill, 2017)

2. Integrated Goods and Services Tax Bill, 2017 (IGST Bill, 2017)

3. GST (Compensation to States) Bill, 2017

4. Union Territory Goods and Services Tax Bill, 2017 (UTGST Bill, 2017)

Soon after bills passed by the upper house of Parliament, Finance Minister, Arun Jaitley expressed his happiness on consensus over the bills- “ I am extremely happy at the fact that when it comes in larger interest of the nation, all political parties have spoken in one voice.”

Since the Country’s biggest tax reform is all set to roll out in July 1, 2017, the most important and pre-eminent concept is of invoice.

Type of documents against supplies

Type of documents Under GST Regime
Tax Invoice A registered taxable A registered taxable person supplying taxable goods/services (b) delivery of goods or making available thereof to the recipient, in any other case would issue a tax invoice. Invoice to be issued in triplicate (for goods) or duplicate (for services)
Bill of Supply A Composition dealer or person supply exempted goods / services
Bill or cash memorandum NA
Credit Note Credit note has to be captured in the returns prior to September of year subsequent to year in which supply was made.
Debit Note No restriction on period of issuance. However, the same would be issued at the time of returning goods or variance in price.
Receipt Voucher Person receiving advances

Let’s go through the technicalities related to Invoice:

As per section 31 (subject to Rule 7), a tax invoice shall be issued by the registered person, which contains the following particulars:

(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 or abatement, if any;

(k) Rate of tax (Central tax, State tax, integrated tax, Union territory tax or cess);

(l) Amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory tax or cess);

(m) Place of supply along with the name of State, in case of a supply in the course of inter- State trade or commerce;

(n) Address of delivery where the same is different from the place of supply;

(o) Whether the tax is payable on reverse charge basis; and

(p) Signature or digital signature of the supplier or his authorized representative:

Provided that the Board/ Commissioner may, by notification, specify-

(i) The number of digits of HSN code of goods or the Accounting Code for services, that a class of registered persons shall be required to mention, for such period as may be specified in the said notification, and

(ii) the class of registered persons that would not be required to mention the HSN code for goods or the Accounting Code for services, for such period as may be specified in the said notification:

Provided further that 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:

Provided also that a registered person may not issue a tax invoice in accordance with the provisions of clause (b) of sub-section (3) of section 31 subject to the following conditions, namely:-

(a) the recipient is not a registered person; and

(b) the recipient does not require such invoice,

and shall issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies.

Manner of issuing notice

(1) In case of supply of goods:

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 duplicate copy being marked as Duplicate For Transporter; and

(c) the triplicate copy being marked as Triplicate For Supplier.

(2) 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.

 Time Limit for issuing tax invoice

– In case of supply of services: Invoice for supply to be raised within thirty days* from the date of supply of services.

* Where the supplier of services is an insurer or a banking company or a financial institution, including a non-banking financial company, the period within which the invoice or any document in lieu thereof is to be issued shall be forty five days from the date of supply of service.

– In case of supply of goods: Invoice for supply to be raised within the given time:

a. Where the supply involves movement of goods- the date of removal of goods for supply:

b. In any other case- the date of delivery of goods/ making available to the recipient.

Tax Invoice in special cases

A tax invoice issued by an Input Service Distributor shall contain the following details:

– Name, address and GSTIN of the Input Service Distributor;

– Consecutive serial number containing only alphabets and/ or numerals, unique for a financial year;

– Date of its issue;

– Name, address and GSTIN of the supplier of services, the credit in respect of which is being distributed and the serial number and date of invoice issued by such supplier;

– Name, address and GSTIN of the recipient to whom the credit is distributed;

– Amount of the credit distributed; and

– Signature or digital signature of the supplier or his authorized representative:

Transportation of goods without issue of invoice

(1) For the purposes of-

(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 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 – central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is for supply to the consignee,

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

(xi) Signature.

(2) 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.

(3) Where goods are being transported on a delivery challan in lieu of invoice, the same shall be declared in FORM [WAYBILL].

(4) 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.

(5) 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.

Author: CS Ekta Maheshwari is the Author of this article and is Company Secretary by profession. The Author can be reached at csektamaheshwari14@gmail.com

Disclaimer:

The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn’t constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information’s provided herein above.

More Under Goods and Services Tax

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Category : Goods and Services Tax (2809)
Type : Articles (12583)
Tags : goods and services tax (1395) GST (979)

One response to “Analysis of New GST Invoice Rules: Rajya Sabha Passes 4 GST Bills”

  1. Ameeta says:

    The author expresses the subject in very understanble and easy manner and has quantified it with due dignity

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