Tax Invoice, Credit and Debit Notes under GST

Under the proposed GST regime every registered person supplying goods or services shall issue some document evidencing movement of goods or supply of services within prescribed time limit and containing all the information & particulars as prescribed under the Act & Rules made there under. This document may be a Tax Invoice , Invoice, Bill of Supply, Delivery Challan etc.

In this article we will understand the time & manner of issuing these documents along with the details & particulars to be mentioned in these documents.

Below is the tabular view showing details of these documents to be issued  and Time limit within which such invoice or documents shall be Issued:

S.No.	Event	Document	Time of issue
1.	A registered person supplying taxable goods [Section 31(1)]	Tax Invoice	before or at the time of: (a) removal of goods for supply to the recipient, where   the supply involves movement of goods (b) delivery of goods or making available thereof to the recipient, in any other case. Not mandatory to separate issue tax invoice for suuplies below Rs. 200/- in case such tax invoice is not required by the customer. [Section. 31(1) (3)(b)]
2.	A registered person supplying taxable services [Section 31(2)]	Tax Invoice	before or after the provision of service but within a period of thirty days from the date of supply of service [Rule 2] Not mandatory to separate issue tax invoice for suuplies below Rs. 200/- in case such tax invoice is not required by the customer. [Section. 31(1) (3)(b)] However shall issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies. [Third Proviso to Rule 1]
3.	A registered person supplying taxable services [proviso to Section 31(2)] Which Government may by notification and subject to such conditions as may be mentioned therein, specify some categories of services	any other document issued in relation to the supply shall be deemed to be a tax invoice	before or after the provision of service but within a prescribed period
4.	In case of continuous supply of goods [Section 31(4)]	Tax Invoice	where successive statements of accounts or successive payments are involved: before or at the time each such statement is issued or, as the case may be, each such payment is received.
5.	In case of continuous supply of services [Section 31(5)]	Tax Invoice	(a) due date of payment is ascertainable: on or before the due date of payment; (b) due date of payment is not ascertainable: On or  before the time when the supplier of service receives the payment; (c) payment is linked to the completion of an event: on or before the date of completion of that event
5.	On receipt of advance [Section 31(3)(d)] Where subsequently no supply is made and no tax invoice is issued in pursuance of advance receipt issued, a refund voucher shall be issued against such payment; [Section 31(3)(e)]	a receipt voucher     a refund voucher	At the time of receipt of advance
6.	supply of services ceases under a contract before the completion of the supply [Section 31(6)]	Tax Invoice	at the time when the supply ceases ( invoice shall be issued to the extent of the supply made before such cessation)
7.	where the goods being sent or taken on approval for sale or return are removed before the supply takes place [Section 31(7)]	Tax Invoice	On or before the time of supply or six months from the date of removal, (whichever is earlier)
8.	Composition dealer or supplier of exempted goods or services [Section. 31(1) (3)(c) & proviso thereof]	bill of supply  in place of Tax Invoice	For supplies below Rs. 200/- to unregistered customers, he may not issue separate bill of supply if case bill not demanded by the customer. [Proviso to Rule 4]
9.	Purchase from unregistered dealer i.e. tax payable under reverse charge. [Section. 31(1)(3)(f)]	Invoice	on the date of receipt of goods or services or both
10.	Payment for Purchase from unregistered dealer i.e. tax payable under reverse charge. [Section. 31(1) (3)(g)]	Payment Voucher	at the time of making payment to the supplier
11.	Supplies made  during the period beginning with the effective date of registration till the date of issuance of certificate of registration to the supplier. [Section. 31(1) (3)(a)]	1. Revised Invoice [Rule 6(2)] 2. Consolidated revised tax invoice (in respect of all taxable supplies made to all recipients  who are not registered under the Act.) [first proviso to Rule 6(2)]	within one month from the date of issuance of certificate of registration
12.	Where goods supplied are returned or excess tax charged due to rate difference or any other reason e.g. supply of deficient goods or services [Section 34(1)]	Credit Note	On the occurrence of such event
13.	Where taxable value or tax charged in tax invoice is found to be less than the taxable value or tax charged in original invoice	Debit Note	On the occurrence of such event
14.	Supplies distributed by Input Service Distributors (ISD) other than banking company or a financial institution, including a non-banking financial company. [ Rule 7(1)]	ISD Invoice or ISD Credit Note
15.	Supplies distributed by Input Service Distributors (ISD) being a banking company or a financial institution, including a non-banking financial company. [proviso to Rule 7(1)]	Any document in lieu of ISD Invoice or ISD credit note, by whatever name called, whether or not serially numbered but containing the information as prescribed u/r 7(1)
16.	supplier of taxable service being an insurer or a banking company or a financial institution, including a non-banking financial company [ Rule 7(2)]	Tax invoice or any other document in lieu thereof, by whatever name called, whether or not serially numbered, and whether or not containing the address of the recipient of taxable service but containing other information as prescribed under rule 7(1)	Within forty five days from the date of supply of service [First Proviso to Rule 2]
17.	Supplier of taxable service is a goods transport agency supplying services in relation to transportation of goods by road in a goods carriage, [Rule 7(3)]	A tax invoice or any other document in lieu thereof, by whatever name called, containing some additional details along with other information as prescribed under rule 7(1).
18.	supplier of taxable service is supplying passenger transportation service. [Rule 7(4)]	a tax invoice shall include ticket in any form, by whatever name called, whether or not serially numbered, and whether or not containing the address of the recipient of service but containing other information as prescribed under rule 7(1).
19.	Supplier of services being an insurer or  a banking company or a financial institution, including a non-banking financial company, or a telecom operator, or any other class of supplier of services as may be notified by the Government making supplies without consideration (excluding gifts upto Rs. 50,000/- in a financial year by an employer to an employee ) which is to be treated as taxable supplies of services between distinct persons as specified in Entry 2 of Schedule I,	Invoice	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. [second proviso to Rule 2]
20.	In Case of inter-State supplies, where the value of a supply does not exceed two lakh and fifty thousand rupees in respect of all the unregistered recipients of a single state. [Second proviso to Rule 6(2)]	An Optional  consolidated revised invoice [Second proviso to Rule 6(2)]
21.	In case of: (a) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known, (b) transportation of goods for job work, (c) transportation of goods for reasons other than by way of supply, or (d) such other supplies as may be notified by the Board, [Rule 8]	Delivery Challan	at the time of removal of goods for transportation

 Some important points:

1. The serial number of invoices issued during a tax period shall be furnished electronically in FORM GSTR-1. [Rule 3(3)]

2. Details of credit notes issued shall be declared in the return for the month during which such credit note has been issued. However Credit note shall be issued & declared not later than the month September following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier. Also 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. [Section 34(2) and proviso thereof]

3. Details of debit notes issued shall be declared in the return for the month during which such debit note has been issued. There is no time limit to declare debit notes. [Section 34(4)]

4. Additional information required to be mentioned on Tax invoice [First Proviso to Rule 1] & Bill of Supply [Proviso to Rule 4] in case of exports 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 the general details of the recipient, invoice shall contain the following details:

(i) name and address of the recipient;

(ii) address of delivery;

(iii) name of the country of destination; and

(iv) number and date of application for removal of goods for export:

5. Details to be provided on Tax invoice issued by ISD, insurer, a banking company, a financial institution, a non-banking financial company or transporter under rule 7(1):

(a) name, address and GSTIN of the Input Service Distributor;

(b) a consecutive serial number containing alphabets or numerals or special characters hyphen or dash and slash symbolised as , “-”, “/”, respectively, and any combination thereof, unique for a financial year;

(c) date of its issue;

(d) name, address and GSTIN of the recipient to whom the credit is distributed;

(e) amount of the credit distributed; and

(f) signature or digital signature of the Input Service Distributor or his authorized representative:

6. Additional details to be provided on Tax invoice issued by transporter of goods under rule 7(3):

a. The gross weight of the consignment.

b. Name of the consignor and the consignee.

c. Registration number of goods carriage in which the goods are transported.

d. Details of goods transported, details of place of origin and destination.

e. GSTIN of the person liable for paying tax whether as consignor.

f. Consignee or goods transport agency.

7. Any invoice or debit note issued in pursuance of any tax payable in accordance with the provisions of section 74 (Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts).or section 129 (Detention, seizure and release of goods and conveyances in transit. )or section 130 (Confiscation of goods or conveyances and levy of penalty).shall prominently contain the words “INPUT TAX CREDIT NOT ADMISSIBLE”. [Rule 6 (3)]

8. Where the goods being transported are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of goods for the purpose of supply, the supplier shall issue delivery challans at the time of removal of goods for transportation and shall issue a tax invoice after delivery of goods. [Rule 8(4)]

9. Where the goods are being transported in a semi knocked down or completely knocked down condition,

(a) the supplier shall issue the complete invoice before dispatch of the first consignment;

(b) the supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;

(c) each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and

(d) the original copy of the invoice shall be sent along with the last consignment.

                   [Rule 8(5)]

 

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