INDIA has put into action the biggest Indirect Tax reform since independence i.e. the past structure of indirect taxation for goods and services has been replaced by a comprehensive Goods and Services Tax (‘GST’). With GST around the corner, it is extremely critical for businesses to comply, issue and maintain appropriate documents including invoices, vouchers, etc. as required in case of diversity of GST transactions.
As businesses usher in the new age, they should not face any complexities for complying with invoicing under GST mode. They must ensure that the GST transaction invoices are prepared with requisite details, which will later enable them and their customers to claim right ITC, and remain GST compliant as they move forward.
♦ Tax Invoice (Taxable supplies other than Exports)
When a registered taxable person supplies taxable goods or services, a tax invoice is issued. If a taxpayer does not issue such an invoice to his customer – who is a registered taxable person, his customer loses the ITC claim and the taxpayer loses its customers.
> Time Limit of issuing the Tax Invoice
|Supply of Goods||Supply of Services|
|Regular Supply |
The tax invoice must be issued before or at the time of –
|Regular Supply |
The tax invoice must be issued within –
|Continuous Supply ||Continuous Supply |
> Copies of Tax Invoice required
|Supply of Goods||Supply of Services|
|Original invoice: The original invoice is issued to the receiver, and is marked as ‘Original for recipient’.||Original Invoice: The original copy of the invoice is to be given to receiver, and is marked as ‘Original for recipient’.|
|Duplicate copy: The duplicate copy is issued to the transporter, and is marked as ‘Duplicate for transporter’.||Duplicate Copy: The duplicate copy is for the supplier, and is marked as ‘Duplicate for supplier’.|
|Triplicate copy: This copy is retained by the supplier, and is marked as ‘Triplicate for supplier’.||–|
> Cases in which Tax Invoice may not be issued
A tax invoice may not be issued when the value of the goods or services supplied is less than INR 200; the recipient is unregistered and does not require such invoice.
However, a consolidated tax invoice should be prepared at the end of each day for aggregate value all such supplies for which tax invoice is not issued.
> Noteworthy points in issuance of Tax Invoice
- Should bear a consecutive serial no (up to 16 characters), in one or multiple series, may be alphanumeric and unique for a FY
- Should contain Name of the State and code if recipient is unregistered and value of supply is INR 50000 or more
- HSN code in case of goods and SAC code in case of services
√ Not required in case of taxpayer having annual turnover up to of INR 1.50 crores in preceding FY
√ 2 digits up to aggregate turnover of INR 5 crores.
√ 4 digits in case of aggregate turnover above INR 5 crores
- Place of Supply (State code) along with Name of State, in case of inter-state supplies
- Should indicate whether the tax is payable under reverse charge
- In case of dealers dealing in taxable as well as exempt/nil-rated/non-taxable goods, would be required to issue a separate invoice (for taxable goods) and bill of supply (for exempt/nil rated etc. goods)
> Illustrative Format of Tax Invoice – Refer attached Excel sheet
♦ Tax Invoice (in case of Exports)
A Tax Invoice in case of Export must, in addition to the details required in a tax invoice, contain the following details:
- To carry endorsement ‘”Supply meant for export on payment of Integrated Tax” or “Supply meant for Export under bond or letter of undertaking without payment of integrated Tax”, as the case may be.
- Name and address of the recipient
- Name of the destination country
- Delivery address
♦ Procurement from Unregistered Dealers – Reverse Charge Invoice
In case of a registered person procuring goods and/or services from an ‘unregistered supplier‘, and the tax is paid by the recipient, the recipient must issue a Tax Invoice (similar to invoice as mentioned above) on the date of receipt of goods and/or services. It may be noted that this invoice is not required to be sent to the Supplier and to be preserved only in the records of recipient. Further, invoice wise details of all such invoices generated during a month to be reported in GSTR-1.
> Option to issue consolidated invoice for a month
A registered person may issue a single consolidate invoice at the end of a month for aggregate values of all supplies exceeding value of INR 5000 in a day procured during the said month from any or all the suppliers.
P.S.: A registered person is exempted from payment of GST on supplies procured from Unregistered suppliers in case the aggregate value of all such supplies do not exceed INR 5000 in a day.
♦ Bill of Supply (Composition Taxpayers and Exempt supplies)
A Bill of Supply to be issued by registered supplier in the following cases:
- Supplier is paying tax under composition scheme
- Supply of exempted goods or services
- Supply of Nil rated goods/services
Similar to tax invoice, a bill of supply need not be issued when the value of goods or services supplied is less than INR 200, unless the receiver requires the bill. However, a consolidated bill of supply should be prepared at the end of each business day for all such supplies for which the bill of supply is not issued.
> Document issued under any other Act to be treated as Bill of Supply
In case of non-taxable supplies, wherein a tax invoice or any other document is issued under any other Act in force, the said documents shall be treated as Bill of supply and there is no requirement to issue separate Bill of supply for such transaction. (Eg. Tax Invoice under VAT act issued for sale of Alcoholic Liquor for human consumption)
> Illustrative Format of Bill of Supply – Refer attached Excel sheet
♦ Advance Payments – Receipt Voucher
When a registered person receives an advance payment for a supply, the person shall issue a receipt voucher for the advance paid by the recipient.
> Noteworthy points in issuance of Receipt Voucher
- In case the rate of tax is not determinable at the time of receipt of advance, the tax shall be paid at the rate of 18%
- In case the nature of supply is not determinable at the time of receipt of advance, the supply shall be treated as inter-state supply and IGST will be charged.
- In case on receipt of advance payment the registered person issues a receipt voucher, but subsequently no supply is made and no tax invoice is issued in pursuance thereof, the registered person may issue to the person who had made the payment, a refund voucher against such payment
> Illustrative Format of Receipt and Refund Voucher – Refer attached Excel sheet
Payments in relation to Reverse charge procurements – Payment Voucher
A registered person liable to pay tax under reverse charge shall issue a payment voucher at the time of making payment to the supplier.
> Illustrative Format of Payment Voucher – Refer attached Excel sheet
♦ Revisions in the values of invoice already issued, Goods Return – Debit Note / Credit Note
To revise the taxable value or GST charged in Tax Invoice, a debit note or supplementary invoice or credit note must be issued by the registered supplier.
> Debit note / Supplementary Invoice – These are to be issued by a supplier in case of increase in taxable value &/or GST charged in the original invoice for such supply.
> Credit note – These are to be issued by a supplier in case of decrease in taxable value &/or GST charged in the original invoice for such supply, or where the goods supplied are returned by the recipient, or where the goods/services supplied are found to be deficient. Credit note must be issued on or before 30th September following the end of FY in which the supply was made OR the date of filing of the relevant annual return, whichever is earlier.
> Debit notes, supplementary invoices and credit notes must include the following details:
- The word ‘revised invoice’ must be indicated prominently along with nature of document
- Name, address, and GSTIN of the supplier
- A consecutive serial number (up to 16 characters) containing alphabets and/or numerals or special characters hyphen “-” or slash “/”, unique for a financial year
- Date of issue of the document
- If recipient is registered- Name, address and GSTIN/Unique ID number of the recipient
- If recipient is unregistered- Name, address of recipient and address of delivery, with state name and code
- Invoice number and Date of the corresponding Original tax invoice or bill of supply
- Taxable value of the goods or services, rate of tax and the amount of tax credited or debited to the recipient
- Signature or digital signature of the supplier or his authorized representative
> Illustrative Format of Revised Invoice – Refer attached Excel sheet
♦ Revised Tax Invoice in case of taxable supplies effected during the period from effective date of registration till the date of issuance of registration certificate
- A registered person who has been granted registration with effect from a date earlier than the date of issuance of Registration certificate, he may issue Revised Tax Invoices (indicating GSTIN) in respect of taxable supplies effected during the intervening period.
- A consolidated revised tax invoice may be issued in respect of all taxable supplies made to an unregistered recipient (intra-state supplies)
- In the case of inter-State supplies, where the value of a supply does not exceed INR 2.50 lacs, a consolidated revised tax invoice may be issued separately in respect of unregistered recipients located in a State.
♦ Transportation of Goods without invoice – Delivery Challan
- Delivery Challan can be issued in some special cases, such as –
- 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 supply
- Any other notified supplies
- Delivery Challan shall be prepared in Triplicate (similar as in case of Tax Invoice)
- Illustrative Format of Delivery Challan – Refer attached Excel sheet