Invoicing under GST regime

Invoicing is crucial in the execution of any transaction. Under GST, taxable persons are required to ensure utmost care while raising the invoice as it is required to be uploaded in the GST Portal for returns. This ensures hassle free flow of Input Tax Credit under the Act.

Section 31 of the Act read with Revised invoice Rules deals with invoicing under GST

Issue of invoice (section 31):

A registered person supplying taxable goods shall issue a tax invoice

1. Where the supply involves movement of goods: before or at the time of removal of goods for supply to the recipient
2. Where the supply does not involve movement of goods: before or at the time of delivery of goods or making available thereof to the recipient

showing the following particulars (Rule 1 of Revised invoice Rules)

1. Name, address and GSTIN of the supplier;
2. consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash or any combination thereof, unique for a financial year
3. date of its issue
4. (a) If registered: Name, address and GSTIN or UIN of the recipient;  (b) If unregistered: Name and address of the recipient and the address of delivery, along with the name of State and its code and where the value of taxable supply is fifty thousand rupees or more
5. HSN code of goods or Accounting Code of services
6. Description of goods or services
7. Quantity in case of goods and unit or Unique Quantity Code thereof
8. Total value of supply of goods or services or both
9. Taxable value of supply of goods or services or both taking into account discount or abatement, if any
10. Rate of tax and Amount of tax (central tax, State tax, integrated tax, Union territory tax or cess
11. Place of supply along with the name of State, in case of a supply in the course of inter-State trade or commerce and address of delivery where the same is different from the place of supply
12. Whether the tax is payable on reverse charge basis and
13. Signature or digital signature of the supplier or his authorized representative

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

Note:

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 (Section 33)

Export 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” and shall in lieu of point 4 above the following details:

• Name and address of the recipient
• Address of delivery
• Name of the country of destination; and
• Number and date of application for removal of goods for export

Input Service Distributor

An ISD invoice or, as the case may be, an ISD credit note issued by an Input Service Distributor shall contain the following details

• Name, address and GSTIN of the ISD
• Consecutive serial number
• Name, address and GSTIN of the recipient to whom the credit is distributed
• Amount of the credit distributed
• Date of its issue
• Signature or digital signature of the Input Service Distributor or his authorized representative

Bank/ financial institution including NBFC – is a ISD	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
Bank/ financial institution including NBFC – is a Taxable supplier	the tax invoice or any other document should atleast contain other information as prescribed under rule 1 except Serial no and address of recipient

Goods Transport Agency (GTA):

 In case of GTA, the invoice shall contain the following details

Supplying services in relation to transportation of goods by road in a goods carriage	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 GTA, Other details in Rule 1
Supplying passenger transportation service	Tax invoice or any ticket in any form should atleast contain other information as prescribed under rule 1 except Serial no and address of recipient

 Manner of issuing invoice:

♠ In case of supply of Goods:

1. Original for recipient
2. Duplicate for transporter
3. Triplicate for supplier

♠ In case of supply of Services

1. Original for recipient
2. Duplicate for Supplier  

Transportation of goods without issue of invoice:

For the purposes of

• 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, or
• such other supplies as may be notified by the Board,

the Consigner may issue a delivery challan in triplicate with details as prescribed in Rule 1

Semi knocked down or completely knocked down goods

Where the goods are being transported in a semi knocked down or completely knocked down condition:

1. Supplier shall issue the complete invoice before dispatch of the first consignment;
2. Supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice
3. Each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and
4. The original copy of the invoice shall be sent along with the last consignment.

Time limit for issuing tax invoice: 

Supplier other than specified above	Within 30 days from the date of supply of service
Supplier of services is an insurer or a banking company or a financial institution, including a non-banking financial company (NBFC)	Within 45 days from the date of supply of service
Supplier of services is an insurer or a banking company or a financial institution, including a NBFC, or a telecom operator, or notified by the Central Govt between distinct persons as specified in section 25 as referred to in Entry 2 of Schedule I	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

 Note:

As per section 7, Supply includes the activities specified in Schedule I, made or agreed to be made without a consideration

Supply of goods or services or both between related persons or between distinct persons as specified in section 25 (i.e., person who has obtained or is required to obtain more than one registration, shall, in respect of each such registration, be treated as distinct persons) when made in the course or furtherance of business without consideration is treated as supply.

Exceptions to time limit for issue of Invoice:

• A registered person may, within one month from the date of issuance of certificate of registration issue a revised invoice against the invoice already issued during the period beginning with “the effective date of registration till the date of issuance of certificate of registration” to him. The word “Revised Invoice”, wherever applicable, indicated prominently

The Revised Invoice shall contain the amount of the tax credited or, as the case may be, debited to the recipient in addition to details under Rule 1

The supplier can issue a consolidated revised invoice to unregistered recipient under the Act:

♦ In case of Local supplies  – For all the taxable supplies

♦ In case of Inter-State supplies – If the value of total suppy does not exceed Rs.2.5 Lakhs

Any invoice or debit note issued in pursuance of any tax payable in accordance with the provisions of section 74 (ITC wrongly utilised for fraud cases) or section 129 (Detention of goods under transit) or section 130

(Confiscation of goods) shall prominently contain the words “INPUT TAX CREDIT NOT ADMISSIBLE”

• Registered person may not issue a tax invoice if the value of the goods or services or both supplied is less than two hundred rupees 
• Registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 shall issue, a bill of supply instead of a tax invoice

Provided that the registered person may not issue a bill of supply if the value of the goods or services or both supplied is less than two hundred rupees. Rule 1 shall apply to Bills of supply also.

• Registered person shall, on receipt of advance payment with respect to any supply of goods or services or both, issue a receipt voucher or any other document evidencing receipt of such payment. The Receipt voucher shall specify the amount of advance taken in addition to details under Rule 1
•  Where, receipt voucher is issued for advance payment, but subsequently no supply is made and no tax invoice is issued in pursuance thereof, the said registered person may issue to the person who had made the payment, a refund voucher against such payment
• Registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 (i.e., on Reverse charge basis) shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both;
• Registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue a payment voucher at the time of making payment to the supplier.

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 each such payment is received.

The invoice shall be issued in the following case except when advance is received for continuous supply of goods

due date of payment is ascertainable from the contract	the invoice shall be issued on or before the due date of payment
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
payment is linked to the completion of an event	the invoice shall be issued on or before the date of completion of that event

If supply of services ceases under a contract before the completion of the supply, 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.

Supplementary tax invoice (Debit Notes & Credit Notes) Section 34:

Supplementary tax invoice is a type of invoice that is issued by taxable person in case where any deficiency is found in a tax invoice already issued by a taxable person. It can be in form of a debit note or a credit note

Credit Note under GST:

A credit note is issued when

♣ Taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or

♣ Where the goods supplied are returned by the recipient, or

♣ Where goods or services or both supplied are found to be deficient

Note:

Any registered person who issues a credit note in relation to a supply of goods or services or both shall declare the details of such credit note in the return for the month during which such credit note has been issued.

 The details to be declared shall be earlier of :

• September following the end of the financial year in which such supply was made, or
• the date of furnishing of the relevant annual return

Provided that 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.

Debit Note under GST:

A debit note is issued when

the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply

Note:

Any registered person who issues a debit note in relation to a supply of goods or services or both shall declare the details of such debit note in the return for the month during which such debit note has been issued and the tax liability shall be adjusted.

Credit Note and Debit Note includes supplementary invoice.

Conclusion

Thus invoicing in GST is crucial for both supplier and recipient. While preparing invoice we need to ensure that correct GSTIN of the buyer is mentioned which ensure free flow of credit. The Business should adopt to such software which ensures proper preparation of invoices and uploading the same in the Portal without any errors. It`s time for the Business to be dynamic to the present regime of GST.

Download Format of Tax Invoice as per GST