Section 31 and Section 34 of the CGST Act 2017 explain about Tax Invoice, Debit Note And Credit Note
1.Tax Invoice
It is issued by supplier of goods or services at the time of supply.
A. Supply of Goods
Section 31 of the CGST Act 2017 Tax invoice.—
(1) A registered person supplying taxable goods shall, before or at the time of,—
(a) removal of goods for supply to the recipient, where the supply involves movement of goods; or
(b) delivery of goods or making available thereof to the recipient, in any other case, issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed:
B. Supply of Services.
(Source: https://icmai.in/upload/Students/Syllabus2022/Inter_Stdy_Mtrl/P7_B.pdf)
Contents of invoice
There is no format prescribed for an invoice, however, Invoice rules makes it mandatory for an invoice to have the following fields (only applicable field are to be filled):
(a) Name, address and GSTIN of the supplier
(b) A consecutive serial number
(c) Date of its issue
(d) Name, address and GSTIN or UIN, if registered, of the recipient
(e) Name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is un-registered and where the value of taxable supply is fifty thousand rupees or more
(f) HSN code of goods or Accounting Code of Services
(g) Description of goods or services
(h) Quantity in case of goods and unit or Unique Quantity Code there of
(i) Total value of supply of goods or services or both
(j) Taxable value of supply of goods or services or both, taking into account the discount or abatement, if any
(k) Rate of tax (Central tax, State tax, Integrated tax, union territory tax or cess)
(l) Amount of tax charged in respect of taxable goods or services (Central tax, State tax, Integrated tax, union territory tax or cess)
(m) Place of supply along with the name of State, in case of a supply in the course of inter-State trade or commerce
(n) Address of delivery where the same is different from the place of supply
(o) Whether the tax is payable on reverse charge basis
(p) Signature or digital signature of the supplier or his authorized representative.
You can see tax invoice, which is the base of GST to charge GST from the customers.
II. Revised Invoice after Registration CGST Act 2017 [Sec. 31(3)(a) r.w.r. 53(2)]
A registered person may, within 1 month from the date of issuance of certificate of registration and in such manner as may be prescribed, issue a revised invoice against the invoice already issued during the period beginning with the effective date of registration till the date of issuance of certificate of registration to him.
III. Receipt Voucher on receipt of advance. CGST Act [Sec. 31(3) (d)]
A registered person shall, on receipt of advance payment with respect to any supply of goods or services or both, issue a receipt voucher or any other document, containing such particulars as may be prescribed, evidencing receipt of such payment;
IV. Refund Voucher. CGST ACT2017 CGST Act [Sec. 31(3)(e)]
where, on receipt of advance payment with respect to any supply of goods or services or both the registered person issues a receipt voucher, but subsequently no supply is made and no tax invoice is issued in pursuance thereof, the said registered person may issue to the person who had made the payment, a refund voucher against such payment;
V. Invoice in case of Reverse Charge
A registered person who is liable to pay tax under sub-section (3) or subsection (4) of section 9 of CGST Act 2017 shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both;
Reverse Charge Invoice
VI. Bill of supply
Issued in cases of supply of exempted goods or services or both or supply by a compensation dealer.
CGST Act Sec 31(3) (c)
A registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 (Composition Levy) shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed:
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 subject to such conditions and in such manner as may be prescribed;
A bill of supply shall be issued by the supplier containing the following details:-
a) Name, address and GSTIN of the supplier;
b) A consecutive serial number,
c) Date of its issue
d) Name, address and GSTIN or UIN, if registered, of the recipient;
e) HSN Code of goods or Accounting Code for services;
f) Description of goods or services or both;
g) Value of supply of goods or services or both taking into account discount or abatement, if any; and
h) Signature or digital signature of the supplier or his authorized representative
VII.E-Invoicing.
You can see the website for e –invoice and conditions for e-invoicing.
(Source: https://einvoice1.gst.gov.in/)
As per the notification No.17/2022 Dated:01/08/2022,e-Invoicing is mandatory for the taxpayers with annual turnover more than Rs 10 crores from 01/10/2022
What is ‘e-invoicing’?
As per Rule 48(4) of CGST Rules, notified class of registered persons have to prepare invoice by uploading specified particulars of invoice (in FORM GST INV-01) on Invoice Registration Portal (IRP) and obtain an Invoice Reference Number (IRN).
After following above ‘e-invoicing’ process, the invoice copy containing inter alia, the IRN (with QR Code) issued by the notified supplier to buyer is commonly referred to as ‘e-invoice’ in GST.
Because of the standard e-invoice schema (INV-01), ‘e-invoicing’ facilitates exchange of the invoice document (structured invoice data) between a supplier and a buyer in an integrated electronic format.
Please note that ‘e-invoice’ in ‘e-invoicing’ doesn’t mean generation of invoice by a Government portal.
How is ‘e-invoicing’ different from present system?
There is no much difference indeed.
Registered persons will continue to create their GST invoices on their own Accounting/Billing/ERP Systems. These invoices will now be reported to ‘Invoice Registration Portal (IRP)’. On reporting, IRP returns the e-invoice with a unique ‘Invoice Reference Number (IRN)’ after digitally signing the e-invoice and adding a QR Code. Then, the invoice can be issued to the receiver (along with QR Code).
A GST invoice will be valid only with a valid IRN.
VIII. Credit note
Issued by supplier to the recipient
When
Tax Charged is more than the tax payable
IX. Debit Note
Issued by supplier to the recipient
When
Tax Charged is less than the tax payable
CGST Act Section 34. Credit and debit notes.—
(1) [Where one or more tax invoices have] been issued for supply of any goods or services or both and the 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, the registered person, who has supplied such goods or services or both, may issue to the recipient [one or more credit notes for supplies made in a financial year] containing such particulars as may be prescribed.
Sec 34 [Where one or more tax invoices have] been issued for supply of any goods or services or both and 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, the registered person, who has supplied such goods or services or both, shall issue to the recipient [one or more debit notes for supplies made in a financial year] 63 containing such particulars as may be prescribed.
X. References.
https://www.cbic.gov.in/resources//htdocs-cbec/gst/tax-invoice-efliers.pdf.
https://www.gstn.org.in/faqs-category-details#
https://www.cbic.gov.in/resources//htdocs-cbec/gst/51_GST_Flyer_Chapter13.pdf
Author Bio
