Important Instructions to issue the Tax Invoice correctly under GST

by Ayushi Bhardwaj



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A person registered under GST supplying taxable goods shall, before or at the time of removal of goods for supply to the recipient, issue a tax invoice. The tax invoice shows the description, quantity, value of goods, the amount of tax charged and such other particulars as may be prescribed. However, the Government may, on the recommendation of the GST Council, by notification, specify the categories of goods in respect of which the tax invoice may be issued in such time and in such manner as may be prescribed.

A registered person supplying taxable services shall, before or after the provision of services, issue a tax invoice showing the description, value, amount of tax charged and such other particulars as may be prescribed. However, the government may, on the recommendation of the GST Council, by notification and subject to such conditions as may be prescribed, specify the categories of supplies where:-

• Any other document may be deemed to be the tax invoice or

• Tax invoice need not be issued.

There are cases where the abovementioned provisions may not be followed namely,

a) A registered person may issue a revised invoice within one month from the date of issuance of certificate of registration against an invoice already issued during the period starting from the effective date of registration till the date of issuance of registration certificate.

b) A registered taxable person need not issue tax invoice in case the value of goods or services or both is less than two hundred rupees.

c) A registered person supplying exempted goods or services or both shall issue a bill of supply instead of a tax invoice containing such particulars as may be specified. However, a bill of supply may not be issued in case the value of goods or services or both is less than two hundred rupees.

d) A registered person shall issue a receipt voucher on receipt of any advance payment with respect to any supply of goods or services or both.

In case where advance payment is received with respect to any supply and subsequently no supply is made and no tax invoice is issued, then the registered person may issue a refund voucher to the person who had made the payment.

e) If the recipient is a registered person and the supplier is not registered, then the recipient is liable to issue an invoice in respect of goods or services or both received by him from the supplier.

The registered recipient shall also issue a payment voucher at the time of making payment to the supplier.

The Following Items, among others, must be clearly mentioned on a Tax Invoice:

1. Your GSTIN (GST Identification Number) and the GSTIN of the Receipient, if he or she is registered.

2. Taxable Value, Tax Rate and Tax Amount Payable.

3. Place of Supply Along with the name of the State, in case of Inter-state supply.

4. Signature or Digital Signature of the Supplier or his Authorised Representative.

In case of continuous supply:-

• Where there is continuous supply of goods and multiple payments and multiple statements of accounts are involved, the invoice shall be issued before or at the time each such statement is issued or such payment is received as the case may be.

• Where there is continuous supply of services:-

i. Where the due date of payment can be ascertained from the contract, the invoice must be issued on or before the due date of payment

ii. Where the due date of payment cannot be ascertained from the contract, the invoice must be issued before or at the time when the supplier receives the payment.

iii. Where the payment is to be made on the completion of an event, the invoice must be issued on or before the date of completion of that event.

In a contract of supply of services, if the supply of services ceases before the completion of supply then the invoice shall be issued at the time when the supply ceases and it shall be issued to the extent supply was made before it ceased.

Credit Notes and Debit Notes:-

Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that 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 the goods or services or both are found to be deficient, the registered person who has supplied the goods or services or both, may issue a credit note to the recipient containing such particulars as may be prescribed. The registered supplier needs to declare the details of the credit note issued in the return for the month in which such credit note has been issued. However, the furnishing of details in the return should not be later than September following the end of the financial year in which supply was made or the date of furnishing of the annual return, whichever is earlier. The tax liability shall be adjusted in the manner prescribed. However, there will be no reduction in output tax liability of the supplier if the burden of tax and the interest has been passed on to any other person.

Where a tax invoice has been issued for supply of goods or services or both and the taxable value or tax charged in that invoice is found to be less than the taxable value or tax payable in respect of such supply of goods or services or both, then the registered person who has supplied the goods or services or both shall issue a debit note to the recipient containing all the particulars that are prescribed. The registered person who has issued the debit note needs to declare the details of such debit note in the return for the month in which debit note has been issued. The tax liability will be adjusted in such manner as may be prescribed.

 

 

 



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