Mr. A:- Good Day Sir, how are you?
CA:- Hi Mr. A, I am doing fine, how about you?
Mr A:- I am doing fine sir. Can you please guide me on the manner of issuance of the tax invoice under GST?
CA:- Mr. A, under GST you need to prepare invoices in triplicate for supply of goods:
i) The original copy being marked as ORIGINAL FOR RECIPIENT,
ii) The duplicate copy being marked as DUPLICATE FOR TRANSPORTER,
iii) The triplicate copy being marked as TRIPLICATE FOR SUPPLIER.
In case of supply of services, you need to prepare invoice in duplicate:
(i) The original copy being marked as ORIGINAL FOR RECIPIENT,
(ii) The duplicate copy being marked as DUPLICATE FOR SUPPLIER,
Mr. A:- I am doing fine sir. Can you please guide me on what time frame I need to issue tax invoice under GST?
CA:- Hi Mr. A, in GST the time of issuing of invoices are also prescribed for supply of goods and services. Here are the rules for issuing the tax invoices:
i) In case of normal and continuous supply
|Normal Supply||On or before Supply||Within 30 days of Supply|
|i) On receipt of advance payment
ii) On or before due date in contract
iii) Where due date in not certain, at the time of receiving payment.
Example of Continuous Supply: Piped Gas, Telephone & Internet supply.
ii) When payment is linked to completion of an event, then a tax invoice should be raised on or before completion of that event. For Ex: Contract work.
iii) Under Composition scheme, person should issue Bill of Supply instead of Tax invoice.
iv) Bill of supply should be issued for every exempted supplies.
v) If value of supply is less than 200 INR then tax invoice may not be issued if
a) Recipient is not registered and
b) he does not require tax invoice
provided supplier shall issue a consolidated invoice at the end of day.
Mr. A:- Ohkey, and you sometimes we need to send 3-4 trucks to send one machine i.e. we deliver goods in semi knocked down (SKD) or complete knocked down (CKD), then is such cases how the invoice will be raised?
CA:- Mr. A, below are the guidelines to issue tax invoice where goods are transported in SKD or CKD condition:
> Issue the Complete invoice before dispatch of first consignment
> Issue Delivery challan giving reference of the invoice, for each subsequent assignment and should be accompanied by certified copy of Invoice.
> Original Invoice shall be sent with last consignment.
Mr A:- OK, and what are the conditions if I receive or send on approval for sale?
CA:- Mr A, When you send or receive goods on approval for sale or return, the invoice should be issued at the earliest of:
i) At the time of supply i.e. once approval is received or
ii) 6 months from the date or receipt or sending of goods
Mr A:- OK, and in what cases I can issue a revised invoice?
CA:- Mr. A, as we discussed that once a person is liable for registration, he should get registration within 30 days. So for the invoices he issued in between the dates till actual issuance of Certificate of registration.
These revised invoices should be issued within 30 days of registration.
For normal invoices, you can raise debit notes and credit notes instead of revising the invoices.
Mr A:- Then what will happen to output tax liability and input tax credit in case of credit and debit note?
CA:- When a credit note is raised due to subsequent decrease in price:
i) The output liability of supplier will decrease and
ii) The input tax credit of recipient will also be reduced
When a debit note is raised due to subsequent increase in price
i) The output liability of supplier will increase and
ii) Recipient can take input tax credit of such amount.
Mr A:- OK, Thank you
(MJL & Co, Jaipur, Chartered Accountants, Email- MJLco.Jaipur@gmail.com, Phone No. – 0141-4915113)