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Invoicing for cash on delivery orders.

08 September 2017

Hi all,

We are into online retailing (on own behalf, not through e commerce operator) and more than 60% of our orders are COD.

Now as customers often refuse to accept these COD orders for various reasons I am in confusion as to what should be done if we have already generated invoice for these orders? Should we cancel the invoices for which customers have refused to accept the orders or we need to create credit notes or debit notes? (Pardon me for my knowledge).

is it possible that we do not generate tax invoice for the COD orders until they are delivered? Or it is compulsory to create tax invoices at the time of shipping through couriers?

please help me. Thanks a lot for your time.

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2 Replies

Shiva (FCA CS DISA(ISAI) Certified Forensic Auditor (ICAI)) (22 Points)
Replied 28 May 2020

Dear Saleem,

You can create a credit note for the goods that remains undelivered if you have already created invoice.Cancellation of invoices multiple times will raise unnecessary doubts.

In case invoice is not created beforehand you can create the invoice of only those goods which are delivered as under GST law invoices must be raised within 30 days from the date of supply of goods.For details you can contact me at cashivalikhdhari @ gmail.com

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 28 May 2020

Dont no agree with Mr. Shiva. Extract of Section 31(1) for your reference:

SECTION 31. 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 descripttion, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed