Invoicing under Goods and Services Tax law

With huge reforms in the taxation sector that promises to change the way we do business, India is truly standing on the anvil of the most radical economic reform after the liberalization of 1991.

The Goods and Services Tax (GST) has been many years in the making will create a seamless national market of 1.3 billion and a unified tax regime. Even as the Union Finance Ministry prepares to launch GST on July 1, it is time for business to prepare for this radically different and integrated tax system.

Invoice plays an important role in any taxation system and GST regime is no exception. It determines value of supply (goods or services), rate of tax, type of tax to be charged (Central GST, State GST, Integrated GST or Interstate GST), tax amount and so on.

The Central Goods and Services Tax Bill, 2017 and Rules comprehensively provides for provisions related to invoice or tax invoice, revised invoice, bill of supply, receipt voucher and supplementary tax invoice.

Who shall issue invoice?

Tax invoice is to be issued by a registered person supplying taxable goods or services.

Contents and Special provisions for Invoices:

Sl No	Nature	Contents
1	Invoice/Tax Invoice	A tax invoice shall contain the following – (a) Name, address and GSTIN of the supplier (b) Consecutive serial number (one or more series) unique for a financial year (c) Serial number may either contain alphabets or numerals or special characters (d) Date of issue (e) Name, address and GSTIN or UIN, if registered, of the recipient (f) Name and address of recipient and address of delivery (in case of unregistered recipient and value of taxable supply exceeds Rs 50,000 it should also include name of State and its code) (g) HSN code or Accounting code for services (h) Description, quantity, unit, total value of goods or services, rate of tax, amount of tax (CGST, SGST, IGST, UTGST or cess), place of supply (in case of interstate supply – name of the State) and address of delivery (if same is different from place of supply) (i) It would also indicate whether tax is to be paid under reverse charge basis (j) Invoice is to be signed manually or digitally (by supplier or authorized signatory)
2	Special Provisions for Insurer or Financial Institution	For a supplier being an insurer or financial institution (NBFC) may not be serially numbered and may not contain address of recipient of taxable service.
3	Special Provisions for goods transport agency	If supplier is a goods transport agency supplying service in relation to transport of goods by road in a goods carriage, the tax invoice should also contain gross weight of consignment, name of consignee and consignor, registration number of carriage, details of goods, place of origin and destination and GSTIN of person responsible for paying tax
4	Special Provisions for passenger transport agency	If supplier is a passenger transport service the tax invoice should include ticket in any form (serially numbered or otherwise).
5	Special Provisions for export of goods or services	Such invoices should mention whether the export is on payment of IGST or export under Bond or Letter of undertaking without payment of IGST and shall contain name and address of recipient, delivery address, Country of destination and details of application for removal of goods for export.

What is the time limit for issuance of Invoice?

Particulars	Goods	Services
Time limit for issuance of invoice	Ø Supplies involving movement of goods – at the time of removal of goods Ø In any other case – at the time of delivery of goods or making available of goods for delivery	Before or after provision of service but within 30 days from supply of service (45 days in case of Insurer, banking company, financial institution including NBFC)

When a tax invoice is not required to be issued?

• Tax invoice may not be issued if the value of goods or services or both supplied is less than Rs 200.
• Recipient is not registered person and he does not require such invoice and he shall issue a consolidated tax invoice for such supplies at the close of each day.

What are provisions for issuance of invoice for continuous supply of goods or services?

Particulars	Goods	Services
Definition	supply of goods on continuous or recurrent basis under a contract where supplier invoices recipient on regular or periodical basis. It also includes supply by means of a wire, cable, pipeline or conduit.	supply of services on continuous or recurrent basis under a contract for a period exceeding 3 months with periodic payment obligations
Requirement	In case of continuous supply of goods involving successive statement of accounts or successive payments, the invoice is to be issued before or at the time of each such statement is issued or each payment is received.	supply of services on continuous or recurrent basis under a contract for a period exceeding 3 months with periodic payment obligations.

Issuance of invoice for services –

• In case due date can be ascertained from contract, invoice to be issued on or before due date of payment
• In case due date cannot be ascertained from contract, invoice to be issued when the supplier receives the payment
• If the payment is linked to completion of event, invoice shall be issued on or before the date of completion of the event

Is there a requirement for issuance of Invoice in case of approval for sale or return basis?

Invoice to be issued earlier of – before or at the time of supply or six months from the date of removal.

What is the requirement on copies (number) of invoices to be issued for supplies?

Particulars	Goods	Services
Number of invoices to be issued	Invoice to be issued in triplicate – Original for recipient, Duplicate for transporter and Triplicate for supplier	Invoice to be issued in duplicate – Original for recipient and Duplicate for supplier
Serial number of invoices issued during a tax period shall be furnished electronically through the Common Portal in FORM GSTR – 1

Bill of Supply and receipt Voucher –

Sl No	Particulars	Provisions
1	Bill of Supply – When issued?	A Bill of supply may be issued by a registered person if he is supplying exempted goods or services or both or paying tax under composition scheme. A bill of supply is not to be issued for supplies is less than Rs 200
2	Contents of Bill of Supply	A bill of supply shall contain the following – (a) Name, address and GSTIN of the supplier (b) Consecutive serial number (one or more series) unique for a financial year (c) Serial number may either contain alphabets or numerals or special characters (d) Date of issue (e) Name, address and GSTIN or UIN, if registered, of the recipient (f) HSN code or Accounting code for services (g) Description, total value of goods or services of both (considering discount or abatement) (h) Manual or digital signature (by supplier or authorized signatory)
3	Receipt Voucher – When issued?	A receipt voucher may be issued in case of receipt of any advance payment
4	Contents of Receipt Voucher	A receipt voucher may contain following particulars – (a) Name, address and GSTIN of the supplier (b) Consecutive serial number unique for a financial year (c) Serial number may either contain alphabets or numerals or special characters (d) Date of issue (e) Name, address and GSTIN or UIN, if registered, of the recipient (f) HSN code or Accounting code for services (g) Description, amount of advance taken, rate of tax, amount of tax (CGST, SGST, IGST, UTGST or cess) and place of supply (in case of interstate supply – name of the State) (h) It would also indicate whether tax is to be paid under reverse charge basis (i) It may be signed manually or digitally (by supplier or authorized signatory) (j) Description, amount of advance taken, rate of tax, amount of tax (CGST, SGST, IGST, UTGST or cess) and place of supply (in case of interstate supply – name of the State) (k) It would also indicate whether tax is to be paid under reverse charge basis (l) It may be signed manually or digitally (by supplier or authorized signatory)

What are the provisions for issuance of supplementary tax invoice and debit or credit notes?

Particulars	Credit Note	Debit Note
Who shall issue	Supplier of goods or services or both	Supplier of goods or services or both
When issued	When taxable value or tax charged exceeds such supply; or goods are returned by recipient; or goods or services or both supplied are deficient	When taxable value or tax charged is less than such supply
What is to be done	Declare such credit note in the return for the month during which it is issued	Declare such credit note in the return for the month during which it is issued
Time limit for declaration in return	Earlier of September of following year or date of filing annual return	NA
When reduction of output liability not permissible	If incidence is passed on to any other person	NA

What should a supplementary tax invoice and Credit or debit note contain?

It shall contain the following –

(a) The word “Revised Invoice” indicated prominently

(b) Name, address and GSTIN of the supplier

(c) Nature of document (supplementary invoice/credit/debit note)

(d) Consecutive serial number unique for a financial year

(e) Serial number may either contain alphabets or numerals or special characters

(f) Date of issue

(g) Name, address and GSTIN or UIN, if registered, of the recipient

(h) Name and address of recipient and address of delivery (in case of unregistered recipient – name of State and its code)

(i) Serial number and date of corresponding tax invoice or bill of supply

(j) Value of taxable supply of goods or services, rate of tax, amount of tax credited or debited

(k) Invoice is to be signed manually or digitally (by supplier or authorized signatory)

Is there any requirement of transport of goods without issuance of invoice?

In following cases goods may be transported without issuance of invoice-

(a) Supply of liquid gas where quantity is not known at the time of removal from place of supplier

(b) Transport of goods for job work

(c) Transport of goods other than supply

What are the particulars to be mentioned on delivery challan?

Delivery challan shall contain the following –

(a) It is serially numbered

(b) Name, address and GSTIN of the consignor, if registered

(c) Name, address and GSTIN or UIN of the consignee, if registered

(d) HSN code and description of goods

(e) Provisional quantity supplied, if exact not known

(f) Taxable value

(g) Tax rate and tax amount

(h) Place of supply (for interstate movement)

(i) Note

(j) Signature

Where delivery challan is issued in lieu of invoice, same shall be declared in FORM (WAY BILL).

What is the requirement on copies (number) of delivery challan to be issued?

Particulars	Goods
Number of copies to be issued	Invoice to be issued in triplicate – Original for consignee, Duplicate for transporter and Triplicate for consignor

What is special provision for issuance of invoice when goods are transported in Semi knocked down or complete knocked down condition?

(a) Supplier to issue complete invoice before first dispatch

(b) To issue delivery challan for each subsequent consignments, giving reference to invoice

(c) Each consignment to contain copy of challan and certified copy of invoice

(d) Original invoice to be sent along with last consignment