Invoicing Under GST
Tax Invoice:-
As per Section 31 of CGST Act 2017
(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:
Provided that the Government may, on the recommendations of the
Council, by notification, specify the categories of goods or supplies in
respect of which a tax invoice shall be issued, within such time and in such
manner as may be prescribed.
(2) 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 may be prescribed:
Provided that the Government may, on the recommendations of the
Council, by notification and subject to such conditions as may be mentioned
therein, specify the categories of services in respect of which––
(a) any other document
issued in relation to the supply shall be deemed to be a tax invoice; or
(b) tax invoice may
not be issued.
Key-Point to
sub-section 1 & 2 of section 31 of CGST Act, 2017
Sub-section (1) of Section 31 talks about Tax
invoice in case of Supply of Goods & Sub-Section (2) of Section 31 talks
about Supply of Taxable services
(3) Notwithstanding anything contained in sub-sections (1) and
(2)––
(a) a registered
person may, within one 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;
(b) a registered
person may not issue a tax invoice 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;
(c) a registered
person supplying exempted goods or services or both or paying tax under the
provisions of section 10 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;
(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;
(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;
(f) a registered
person who is liable to pay tax under sub-section (3) or sub-section (4) of
section 9 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;
(g) a registered
person who is liable to pay tax under sub-section (3) or sub-section (4) of
section 9 shall issue a payment voucher at the time of making payment to the
supplier.
Key-Point to
sub-section 3 of section 31 of CGST Act, 2017
Revised Invoice is
required to be issued for every invoice that has been issued between
application for GST registration and issuance of certificate of registration.
A tax invoice/Bill of
supply is not necessary in case where the value of supplies is less than
Rs.200/-
Bill of supply will be
issued in case of Supply made by Composite dealer and exempted supply.
In case of receipt of
advance payment, a receipt voucher will be issued.
In case a receipt
voucher has been issued for advance received and no supply has been made in
relation to advance then a refund voucher are required to issue.
When the supplier is
unregistered, a invoice will be required to issue by the recipient of supplies
when the supplies are covered under Reverse charge mechanism and a payment
voucher are required to issue to supplier while making the payment.
(4) In case of continuous supply of goods, where successive
statements of accounts or successive payments are involved, the invoice shall
be issued before or at the time each such statement is issued or, as the case
may be, each such payment is received.
(5) Subject to the provisions of clause (d) of sub-section (3),
in case of continuous supply of services,––
(a) where the due date
of payment is ascertainable from the contract, the invoice shall be issued on
or before the due date of payment;
(b) where the due date
of payment is not ascertainable from the contract, the invoice shall be issued
before or at the time when the supplier of service receives the payment;
(c) where the payment
is linked to the completion of an event, the invoice shall be issued on or
before the date of completion of that event.
(6) In a case where the supply of services ceases under a
contract before the completion of the supply, the invoice shall be issued at
the time when the supply ceases and such invoice shall be issued to the extent
of the supply made before such cessation.
(7) Notwithstanding anything contained in sub-section (1), where
the goods being sent or taken on approval for sale or return are removed before
the supply takes place, the invoice shall be issued before or at the time of
supply or six months from the date of removal, whichever is earlier.
Explanation - For the purposes of this section, the expression
“tax invoice” shall include any revised invoice issued by the supplier in
respect of a supply made earlier.
Section-32. Prohibition
of unauthorized collection of tax
(1) A person who is
not a registered person shall not collect in respect of any supply of goods or
services or both any amount by way of tax under this Act.
(2) No registered
person shall collect tax except in accordance with the provisions of this Act or the rules made there
under.
Section-33. Amount
of tax to be indicated in tax invoice and other documents
Notwithstanding anything contained in this Act or any other law
for the time being in force, where any supply is made for a consideration,
every person who is liable to pay tax for such supply shall prominently
indicate in all documents relating to assessment, tax invoice and other like
documents, the amount of tax which shall form part of the price at which such
supply is made.
Section-34. Credit and
debit notes
(1) 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 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 a credit note containing such particulars as
may be prescribed.
(2) Any registered
person who issues a credit note in relation to a supply of goods or services or
both shall declare the details of such credit note in the return for the month during
which such credit note has been issued but not later than 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, and the tax liability
shall be adjusted in such manner as may be prescribed:
Provided that 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.
(3) 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 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 a
debit note containing such particulars as may be prescribed.
(4) Any registered
person who issues a debit note in relation to a supply of goods or services or
both shall declare the details of such debit note in the return for the month during
which such debit note has been issued and the tax liability shall be adjusted
in such manner as may be prescribed.
Explanation - For the purposes of this Act, the expression
“debit note” shall include a Supplementary invoice.
CMA GAURAV KUMAR
IPLAP
The Institute of Practical Learning for Accounting Professionals
www.iplap.in
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