TAX INVOICE

♣ Supply of goods:

As per Section 31(1) of CGST Act 2017, 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 prescribed in Revised Invoice Rules, 2017.

As per Rule 1 of Revised Invoice Rules, 2017, a tax invoice shall contain following particulars:

(a) Name, address and GSTIN of the supplier;

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

(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 thereof;

(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 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; and

(p) Signature or digital signature of the supplier or his authorized representative:

♣ Supply of Services:

As per Section 31(2) of CGST Act 2017, a registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as prescribed in Rule  of Revised Invoice Rules, 2017.

As per rule 2 of Revised Invoice Rules 2017, a tax invoice shall be issued within 30 days from the date of supply of services or within 45 days in case supplier of service is an Insurer or a Banking company or a Financial Institution including a NBFC.

♣ Revised Invoice:

As per Section 31(3)(a) of CGST Act 2017, a registered person may issue a revised invoice against the invoice issued during the period beginning with the effective date of registration till the date of issuance of certificate of registration but within one month from the date of issuance of certificate of registration.

Comment: A registered person may issue Tax Invoice for passing the credit to the recipient.

♣ No Tax Invoice

As per Section 31(3)(b) of CGST Act 2017, if the value of supply is less than Rs.200 , a registered person may not issue a tax invoice.

♣ Bill of Supply

As per Section 31(3)(c) of CGST Act 2017, if a registered person supplying exempted goods or services or paying tax under composition invoice, a Bill of Supply shall be issued instead of Tax Invoice.

There is no requirement of Bill of Supply if value of goods or services is less than Rs.200.

As per Rule 4 of Revised Invoice Rules, 2017, Bill of Supply shall contain following particulars:

(a) Name, address and GSTIN of the supplier;

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

(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

♣ Receipt Voucher

As per Section 31(3)(d) of CGST Act 2017, receipt voucher shall be issued on receipt of advance payment.

As per Rule 5 of Revised Invoice Rules 2017, Receipt Voucher shall contain following particulars:

(a) Name, address and GSTIN of the supplier;

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

(c) Date of its issue;

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

(e) Description of goods or services;

(f) Amount of advance taken;

(g) Rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);

(h) Amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory tax or cess);

(i) place of supply along with the name of State and its code, in case of a supply in the course  of inter-State trade or commerce;

(j) Whether the tax is payable on reverse charge basis; and

(k) Signature or digital signature of the supplier or his authorized representative.

♣ Refund voucher

As per Section 31(3)(e) of CGST Act 2017, where a receipt voucher is issued on advance payment and subsequently no supply is made and no tax invoice is issued , the registered person may issue a refund voucher to the person who had made the payment.

♣ Invoice on Reverse charge

As per Section 9(4) of CGST Act 2017, if an unregistered person is supplying goods to a registered person that registered person shall pay tax under reverse charge mechanism.

As per Section 31(3)(f) of CGST Act 2017, a registered person who is liable to pay tax under reverse charge mechanism shall issue an invoice in respect of goods or services received by him from the supplier who is not registered.

As per Section 31(3)(g) of CGST Act 2017, a registered person who is paying tax under reverse charge mechanism shall a payment voucher at the time of making payment to the supplier.

♣ Invoice in case of continuous supply of goods

As per Section 31(4) of CGST Act 2017, the invoice shall be issued at the time of receiving each payment or issuing each successive statement of accounts.

♣ Invoice in case of continuous supply of services

  • Due date of payment is ascertainable- Invoice on or before due date of payment
  • Due date of payment is not ascertainable- Invoice on or before receipt of payment by supplier.
  • Payment linked to completion of an event- Invoice on or before the completion of that event.

♣ Invoice in case of cessation of supply of services

As per Section 31(6) of CGST Act 2017, if supply of services ceases before the completion of supply, the invoice shall be issued at the time of cessation of supply, to the extent supply made before such cessation.

♣ Goods sent on approval

As per Section 31(7) of CGST Act 2017, if goods are sent on approval basis, invoice shall be issued before or at the time it is known that supply has taken place or 6 months from the date of removal.

♣ Other Provision

As per Section 33 of CGST Act 2017, every person who is liable to pay tax shall indicate in all documents relating to assessment, tax invoice or other like documents, the amount of tax.

♣ Credit Note

As per Section 34(1) of CGST Act 2017, a Credit note may be issued by the registered person who has supplied goods or services to the recipient where:

  • Taxable value or tax charged in the tax invoice issued is found to exceed the taxable value or tax payable
  • Goods supplied are returned by the recipient
  • Goods or services or both supplied are found to be deficient

The detail of credit note shall be declared in the return for the month during which credit note is issued. However, credit note shall be issued to the earlier of September following the end of financial year or date of furnishing of annual return i.e 31st December following the end of such financial year.

♣ Debit Note

As per Section 34(3) of CGST Act 2017,a Debit note may be issued by the registered person who has supplied goods or services to the recipient where:

  • Taxable value or tax charged in the tax invoice issued is found to be less than the taxable value or tax payable

The detail of Debit note shall be declared in the return for the month during which debit note is issued and tax liability shall be adjusted accordingly. The debit note shall include a supplementary invoice.

♣ Contents of Supplementary tax invoice and Credit or Debit notes

As per Rule 6 of Revised Invoice Rules 2017, a revised tax invoice or Debit or Credit notes shall contain following particulars:

(a) The word “Revised Invoice”, wherever applicable, indicated prominently;

(b)  Name, address and GSTIN of the supplier;

(c) Nature of the document;

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

(e) Date of issue of the document;

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

(g) 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;

(h) Serial number and date of the corresponding tax invoice or, as the case may be, bill of supply;

(i) value of taxable supply of goods or services, rate of tax and the amount of the tax credited or, as the case may be, debited to the recipient; and

(j) Signature or digital signature of the supplier or his authorized representative:

Author Bio

Qualification: CA in Job / Business
Company: employee
Location: Delhi, New Delhi, IN
Member Since: 16 May 2017 | Total Posts: 1

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One response to “All About Tax Invoice under GST”

  1. kamal says:

    Monika ji,

    Can a trader remover its goods without invoice as he would send invoice prior to sell for sake of confidentiality ? He will simply remove its goods on the basis of delivery challan.

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