Goods and Service Tax is getting implemented w.e.f. 1st July 2017, therefore one of the most important aspect to understand is the particulars of invoice.
A registered taxable person shall issue a tax invoice as referred to in section 31 of CGST ACT. As per rule 1, the contents of a tax invoice shall mandatorily include:
(a) name, address and GSTIN of the supplier;
(b) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolized 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:
Provided that the Commissioner may, on the recommendations of the Council, by notification, specify -
(i) the number of digits of HSN code for goods or the Accounting Code for services, that a class of registered persons shall be required to mention, for such period as may be specified in the said notification, and
(ii) the class of registered persons that would not be required to mention the HSN code for goods or the Accounting Code for services, for such period as may be specified in the said notification:
Provided further that where an invoice is required to be issued under clause (f) of sub-section (3) of section 31, it shall bear the signature or digital signature of the recipient or his authorized representative:
Provided also that in case of export of goods or services, the invoice shall carry an endorsement
'SUPPLY MEANT FOR EXPORT ON PAYMENT OF
INTEGRATED TAX' or
'SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX',
as the case may be, and shall, in lieu of the details specified in clause (e), contain the following details:
(i) name and address of the recipient;
(ii) address of delivery; and
(iii) name of the country of destination:
Provided also that a registered person may not issue a tax invoice in accordance with the provisions of clause (b) of sub-section (3) of section 31 subject to the following conditions, namely:-
(a) the recipient is not a registered person;
(b) the recipient does not require such invoice, and shall issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies.
TIME LIMIT for Issue of Invoice
In case of taxable supply of services, invoice shall be issued within a period of 30 days from the date of supply of service; except in case of an insurer, a banking company or a financial institution including NBFC the time limit is 45 days.
In case of supply of goods, tax invoice shall be issued 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.
1. Clause (b) of sub-section 3 of section 31 states that where the value of goods or services or both supplied is less than Rs. 200, the registered person may not issue invoice in such circumstance.
2. Clause (c) states that a person opting for composition scheme shall issue a ‘bill of supply’ instead of ‘tax invoice’. Bill of supply as per rule 4 shall contain particulars as mentioned in rule 1 at point (a), (b), (c), (d), (f), (g), (j), and (p).
3. In case of receipt of advance payment a receipt voucher as per clause (d) of sub-section 3 of section 31 shall be issued. The particulars of receipt voucher shall include details as mentioned in rule 1 at point (a), (b), (c), (d), (g), (k), (l), (m), (o), (p) and amount of advance taken. Further, if at the time of receipt of advance the rate of tax is not determinable, the tax shall be paid at 18% and if the nature of supply is also not determinable then the same shall be treated as inter-state supply.
4. In case a receipt voucher is issued and subsequently no supply is made to the person who has made the payment, the clause (e) of sub-section 3 of section 31 provides for issue of refund voucher in such case. Rule 6 prescribes details to be mentioned in a refund voucher shall include details as mentioned in rule 1 at point (a), (b), (c), (d), (k), (l), (o), (p) and amount of refund made, description of goods or services in respect of which refund is made and number, date of receipt voucher for which refund voucher is issued.
5. For payment of tax under reverse charge scheme [sub-section (3)or (4) of section 9], as per clause (g) of sub-section 3 of section 31, a payment voucher shall contain following details read with rule 7: details as mentioned in rule 1 at point (a), (b), (c), (d), (g), (k), (l), (m), (p) and amount paid.
6. An ISD invoice or ISD credit note issued by Input Service Distributor (ISD) shall contain the following details: details mentioned in rule 1 at point (a), (b), (c), (d) and amount of credit distributed and signature or digital signature of the ISD or his authorized representative.
MANNER OF ISSUING OF INVOUCE (RULE 3):
In case of supply of goods three invoice shall be prepared- original copy being marked as ORIGINAL FOR RECIPIENT, duplicate copy being marked as DUPLICATE FOR TRANSPORTER and the triplicate copy being marked as TRIPLICATE FOR SUPPLIER.
In case of supply of goods three invoice shall be prepared- original copy being marked as ORIGINAL FOR RECIPIENT and duplicate copy being marked as DUPLICATE FOR SUPPLIER.
IMP NB: Wherever rule has been referred unless specified refers to INVOICE RULES as notified. Rule 8 (revised tax invoice and credit or debit notes) and Rule 10 (Transportation of goods without issue of invoice) has not been discussed here. The same will be dealt in separate post.