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
A registered person supplying taxable goods shall issue a tax invoice
showing the following particulars (Rule 1 of Revised invoice Rules)
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.
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)
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:
An ISD invoice or, as the case may be, an ISD credit note issued by an Input Service Distributor shall contain the following details
|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||
|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:
♠ In case of supply of Services
For the purposes of
the Consigner may issue a delivery challan in triplicate with details as prescribed in Rule 1
Where the goods are being transported in a semi knocked down or completely knocked down condition:
|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||
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:
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”
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.
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
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
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 :
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.
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
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.
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.