Tax Invoice under GST Act

Goods and Services Tax (GST)– Tax Invoice as per Chapter-VII of CGST law

⇒ Who can issue Tax Invoice: A registered Taxable person can issue tax invoice.

⇒ Time limit for issuing tax invoice:

– In case of goods

–If movement of goods involved: At the time of removal of goods.

–If movement of goods not involved: At the time of delivery or goods making available to the recipient

– In case of services: Before or after the provision of services but within prescribed time limit (As per revised Rule 2 of GST-Invoice rule, In case of taxable supply of services, Invoice shall be issue within 30 days {45 days in case of Banking/insurer/NBFC} from the date of supply of service)

⇒ What is 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.

⇒ Tax Invoice shall Include any revised invoice issued by supplier in respect of supply made earlier.

⇒ In case of advance payment: Supplier shall issue a receipt voucher for evidencing receipt of such payment.

⇒ In case of supply under RCM: If a registered person accept supply under Reverse Charge Mechanism, then such recipient shall issue an invoice in respect of goods/services or both received by him and such recipient shall also issue a payment voucher at time of making payment to such supplier.

⇒ In case of continuous supply of services

-If due date of payment is ascertainable: Supplier shall issue an invoice on or before the due date of payment

-If due date of payment is not ascertainable: Supplier shall issue an invoice on or before the due date of payment

-If payment is linked to the completion of an event: Supplier shall issue an invoice on or before the date of completion of an event.

⇒ If the taxable value or tax charged in tax invoice is found to exceed/to be less than the taxable value or tax charged in respect of that supply then such supplier shall issue a credit/debit note to such recipient.

⇒ The details of such credit/debit note issued by supplier shall furnished in the return for the month in which such credit/debit note issued and tax liability shall be adjusted accordingly.

Content of Tax Invoice

• Name, Address and GSTIN of supplier
• A consecutive serially numbered, unique for a FY
• Date of issue
• Details of Recipients

– If registered: Name, Address and GSTIN/Unique ID Number

– If Unregistered: Name, address & address of place of delivery along with state code & its code provided taxable value of supply is Rs 50,000 or more. {Clause(e)}

• HSN code of goods/Accounting code of Services
• Description of Goods/Services
• Rate of tax (CGST, SGST or IGST)
• Amount of Tax Charged
• Total value of goods/services
• Specifically mentioned whether tax is payable under Reverse charge mechanism.
• In case of inter-state supply: Mention place of supply along with name of state.
• Place of Delivery, If same is different from place of supply
• In case of inter-state supply: Mention place of supply along with name of state
• Place of Delivery, If same is different from place of supply
• the word “Revised Invoice” or “Supplementary Invoice” indicated prominently, If applicable
• Signature or Digital Signature of supplier or his authorized representative
• In Export: Invoice shall carry an endorsement “ SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST” or “ SUPPLY MEANT FOR EXPORT UNDER BOND WITHOUT PAYMENT OF IGST”. And invoice shall contain following details.
  • Name & address of recipient
  • Address of delivery along with country name
  • Number & Date of application for removal of goods.

Manner of issuing tax invoice

In case of goods:-

⇒ The Invoice shall be prepared in triplicate

• Original Copy marked as Original for Recipient;
• Duplicate Copy marked as Duplicate for Transporter;
• Triplicate Copy marked as Triplicate for Supplier

In case of services:

⇒ The Invoice shall be prepared in Duplicate

• Original Copy marked as Original for Recipient;
• Duplicate Copy marked as Duplicate for Supplier.

⇒ The Serial Number of Invoice shall be furnished electronically in form GSTR-1 through common portal.(Outward Supplies)

Bill of Supply

⇒ What is 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.

⇒ Content of Bill of Supply:

• Name, Address and GSTIN of supplier
• A consecutive serially numbered, unique for a FY
• Date of issue
• Name, Address and GSTIN/Unique ID Number, If registered, of recipient
• HSN code of goods & Accounting Code of Services
• Description of Goods/ Services
• Taxable Value of Goods/Services taking into account discount or abatement, If any
• Signature or Digital Signature of supplier of his authorized representative

⇒ The provision of rule 1 ( i.e. Content of tax invoice) shall, mutatis mutandis, apply to the bill of supply issued under this rule.

Receipt Voucher

⇒ In case of advance payment: Supplier shall issue a receipt voucher for evidencing receipt of such payment.

⇒ Content of Receipt Voucher:

• Name, Address and GSTIN of supplier
• A consecutive serially numbered, unique for a FY
• Date of issue
• Name, Address and GSTIN/Unique ID Number, If registered, of recipient
• Amount of advance taken
• Description of Goods/ Services
• Rate of tax (CGST/SGST/IGST/UTGST)
• Amount of tax charged
• In case of Inter-state supply:- Place of supply along with name of state and its code.
• Specifically mentioned whether tax is payable under Reverse charge mechanism.
• Signature or Digital Signature of supplier of his authorized representative

Supplementary Tax Invoice and Credit or Debit Notes

⇒ Content of Supplementary Tax Invoice and Credit or Debit Notes:

Name, Address and GSTIN of supplier

The word “Revised Invoice”, wherever applicable, indicated prominently

A consecutive serially numbered, unique for a FY

Date of issue

Nature of Document

• Name, Address and GSTIN/Unique ID Number, If registered, of recipient
• Name, address & address of place of delivery, If Unregistered, along with state code & its code of recipient
• Serial Number & Date of corresponding Tax Invoice or Bill of Supply
• Taxable Value of goods/Services, rate of tax and the amount of tax Credited or Debited to the recipient
• Signature or Digital Signature of supplier or his authorized representative

⇒ Consolidated Revised Invoice: In case of inter state supplies, a consolidated invoice may be issued separately in respect of all recipients located in a state, if value of supply does not exceed Rs 2,50,000.

Tax Invoice in Special Cases

⇒ Content of Tax Invoice issued by INPUT SERVICE DISTRIBUTOR (ISD):

• Name, Address and GSTIN of the Input Service Distributor
• A consecutive serially numbered, unique for a FY
• Date of issue
• Name, address and GSTIN of the recipient to whom the credit is distributed
• Amount of the credit distributed
• Signature or Digital Signature of ISD distributor or his authorized representative

⇒ What if supplier of taxable Service is a insurer or Banking company or Financial Institutions: shall issue tax Invoice or any other document thereof, by whatever name called, whether or not serially numbered, whether or not containing the address of recipient, but containing other information as prescribed under Rule 1 (i.e. content of tax invoice).

⇒ What if supplier of taxable service is a Goods Transport Agency (GTA): If supplier supplying services in relation to transportation of goods by Road in a goods carriage then such supplier shall issue Tax Invoice.

⇒ Content of Tax Invoice in case of GTA

• Gross Weight of the consignment
• Name of consignor and the consignee
• Number of Goods Carriage (i.e. Truck Number ) in which goods are transported
• Details of goods transported
• Details of Place of origin and destination
• GSTIN of person liable to pay whether consignor, consignee or GTA
• Other Details as prescribed in Rule 1.

⇒ What if the supplier is supplying passenger transportation service: Tax invoice shall include ticket in any form, by whatever name called, whether or not containing address of recipient of service but containing other information as prescribed in Rule 1.

Transportation of goods without issuance of invoice

⇒ Cases under which consigner may issue delivery challan ;

• Supply of liquid gas where quantity is not known at the time of removable
• Transportation of goods for job work
• Transportation of goods for reason other than by way of supply
• Such other supply as may be notified by board

⇒ The delivery challan shall be prepared in Triplicate

• Original copy being marked as ORIGINAL FOR CONSIGNEE
• Duplicate copy being marked as DUPLICATE FOR TRANSPORTER
• Triplicate copy being marked as TRIPLICATE FOR CONSIGNER

⇒ Such goods transported on delivery challan without invoice, then the same shall declared in FORM (WAYBILL).

⇒ The following steps is to be follwed if goods transported in semi knocked down or completely knocked down conditions

⇒ The following steps is to be followed if goods transported in semi knocked down or completely knocked down conditions.

• Supplier shall issue complete invoice before dispatch of first assignment
• Supplier shall issue delivery challan for each consignment, giving reference of original invoice
• Each consignment must be accompanied by certified copy on invoice
• Original copy of invoice shall be sent along with last consignment.

⇒ Content of Delivery Challan

• Name, Address and GSTIN of consigner , if registered
• Name, Address and GSTIN of consignee , if registered
• Date & Number of delivery challan
• HSN code & description of goods
• Quantity (Provisional, where the exact quantity being supplied is not known)
• Place of supply in case of inter-state movement
• Taxable Value & Rate of tax of Goods where transportation is for supply to the consignee
• Signature.

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