IntelliGST

1: What is invoice?

Invoice is a document issued by a supplier of goods or services or both to recipient of the same. It contains details such as value, list of goods or services, description of the parties.

2: Who is responsible to issue invoice?

As per section 31 (1) of CGST Act, 2017, A registered person supplying taxable goods shall issue invoice to the recipient of same.

3: When registered person, who is making taxable supplies of goods, is liable to issue invoice?

As per section 31 (1) of CGST Act, 2017, where the supply involves movement of goods, a registered person supplying taxable goods shall issue invoice before or at the time of removal of goods for supply to the recipient. In other case, invoice shall be issued at time of delivery of goods or making available thereof to the recipient.

4: When registered person, who is supplying taxable services, is liable to issue invoice?

As per section 31 (2) of CGST Act, 2017 read with Rule 47 of CGST rules, 2017, A registered person supplying taxable services shall, before or after the provision of service but within a within a period of thirty days from the date of the supply of service, issue a tax invoice.

5: Whether the time limit of 30 days for issue of invoice is also applicable to banking and financial institutions?

As per proviso to Rule 47 of CGST rules, 2017, where the supplier of services is an insurer or a banking company or a financial institution, including a non-banking financial company, they shall issue invoice within forty five days from the date of the supply of service.

Where such companies are making taxable supplies of services between distinct persons, they may issue the invoice before or at the time such supplier records the same in his books of account or before the expiry of the quarter during which the supply was made.

6: What are the contents of a tax invoice, as required to be issued under GST regime?

A tax invoice shall contain following details:

GSTIN of supplier
Consecutive serial number
Date of its issue;
GSTIN of the recipient, if registered
name and address of the recipient and the address of delivery,
Harmonised System of Nomenclature code for goods or services;
Description of goods or services;
Quantity in case of goods
Total value of supply of goods or services or both;
Taxable value of the supply
Discount or abatement, if any;
Rate of tax
amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory tax or cess);
Place of supply along with the name of the State,
Address of delivery where the same is different from the place of supply;
Whether the tax is payable on reverse charge basis; and
Signature or digital signature of the supplier or his authorised representative.

7: Can invoice, so issued, be revised?

As per section 31 (3) of CGST Act, 2017, 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. Further, the word “Revised Invoice”, wherever applicable, should be indicated prominently.

8: Under what circumstances, a registered person making taxable supply is not liable to issue invoice?

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 certain conditions.

9: Whether composition dealer is liable for issue of tax invoice?

A composition dealer shall issue bill of supply, instead of a tax invoice. However, if the value of the goods or services or both supplied is less than two hundred rupees, then he may not issue bill of supply.

10: Whether person making exempt supplies is also liable for issue of tax invoice?

A registered person making exempted supplies shall issue bill of supply, instead of a tax invoice. However, if the value of the goods or services or both supplied is less than two hundred rupees, then he may not issue bill of supply. However, vide Notification No. 45/ 2017 dated 13^th October, 2017 where a registered person is supplying taxable as well as exempted goods or services or both to an unregistered person, a single “invoice-cum-bill of supply” may be issued for all such supplies.

11: In case registered person receives advance payment with respect to supplies, how will he issue invoice?

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

12: What remedy is available to registered person issued voucher against receipt of advance payment but supply could not be made?

The said registered person, who issued voucher against receipt of advance payment but supply could not be made, may issue to the person who had made the payment, a refund voucher against such payment.

13: How invoice shall be issued in case of unregistered supplier?

As per clause (f) of sub- section 3 of section 31 of CGST Act, 2017, registered recipient, who is liable to pay tax, shall issue an invoice to supplier of goods or services or both.

14: Can registered person issue consolidated supply at the end of the month?

Recipient of supply, who is required to issue an invoice under reverse charge basis, may issue a consolidated invoice at the end of a month for supplies chargeable at reverse charge, on a condition that the aggregate value of such supplies exceeds rupees five thousand in a day from any or all the suppliers.

15: Can registered person issue consolidated supply at the close of each day?

In case, the recipient, of supplies, is not a registered person or the recipient does not require such invoice, then supplier shall issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies.

16: Is there any specific note which is required to be mentioned in case of export of goods or services?

In the case of the export of goods or services, the invoice shal l carry an endorsement “SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS ON PAYMENT OF INTEGRATED TAX” or “SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”.

17: What is the time period within which invoice has to be issued in a case involving continuous supply of goods?

As per sub- section 4 of section 31 of CGST Act, 2017, 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.

18: What is the time period within which invoice has to be issued in a case involving continuous supply of services?

In case of continuous supply of services, invoice shall be issued in following manner:

(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.

19: Can unregistered person collect tax?

As per section 32 (1) of CGST Act, 2017, unregistered person is prohibited from collecting tax in respect of any supply of goods or services or both.

20: What is the time period within which invoice has to be issued where the goods being sent or taken on approval for sale?

The invoice in respect of goods sent or taken on approval for sale or return shall be issued before or at the time of supply or six months from the date of approval, whichever is earlier.

21: What is the procedure of issuing invoice?

As per Rule 48 of CGST Rules, 2017, in the case of supply of goods, the invoice shall be prepared in triplicate, where the original copy shall be marked as ORIGINAL FOR RECIPIENT and the duplicate copy being marked as DUPLICATE FOR TRANSPORTER and the triplicate copy being marked as TRIPLICATE FOR SUPPLIER.

However, in the case of the supply of services, the invoice shall be prepared in duplicate, where the original copy being marked as ORIGINAL FOR RECIPIENT and the duplicate copy being marked as DUPLICATE FOR SUPPLIER.

22: What is credit note?

In general, Credit Note means any document or a receipt given by a supplier to a customer who has returned goods, which can be offset against future purchases.

23: What does expression ‘Credit Note’ means in GST regime?

Where supplier, of goods or services or both, after issuing invoice realizes that taxable value or tax charged exceeds the actual 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 supplier may issue to the recipient a credit note.

24: Whether supplier who has issued credit note is liable to mention the same in return?

Yes. Supplier, who issues a credit note, shall declare the details of such credit note in the return for the month during which such credit note has been issued. However, such declaration should not be 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.

25: What is debit note?

In general, a debit note is a commercial document issued by a recipient or buyer, as the case may be, to a seller as a means of formally requesting a credit note.

26: What does expression ‘Debit Note’ means in GST regime?

Where supplier, of goods or services or both, after issuing invoice realizes that taxable value or tax charged is less than the actual taxable value or tax payable in respect of such supply then the supplier may issue to the recipient a debit note.

27: Whether supplier who has issued debit note is liable to mention the same in return?

Yes. Supplier, who issues a debit note, shall declare the details of such debit note in the return for the month during which such debit note has been issued. However, such declaration should not be 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.