Five things about GST Invoices: A tax invoice has to be issued by the supplier of goods or services based on section 31 of the CGST Law. The most awaited tax reform i.e. Goods and Service Tax (GST) became a reality on 1st July 2017. GST, with the five different tax slabs (i.e. 0%, 5%, 12%, 18% and 28%) has overhauled the indirect tax regime in India. In this article you may find “Five things about GST Invoices” from below….
Five things about GST Invoices
I. When to issue invoice for goods?
As per section 31 (1) of the CGST Act, 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
II. When to issue invoice for services?
As per section 31 (2) of the CGST Act, a registered person supplying taxable services will, 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.
In this regard, the as per Rule 47 of CGST Rules its provided that invoice should be issued within 30 days from the date of supply of service. For insurer or a banking company or a financial institution, including a nonbanking financial company, this period is 45 days.
Special provision for distinct persons
As per second proviso to Rule 47 of CGST Rules, it is provided that an insurer or a banking company or a financial institution, including a nonbanking financial company, or a telecom operator, or any other class of supplier of services as may be notified by the Government on the recommendations of the Council, making taxable supplies of services between distinct persons as specified in section 25, may issue the invoice:
- a. Before or at the time such supplier records the same in his books of account or
- b. Before the expiry of the quarter during which the supply was made
III. When to issue receipt voucher for advances?
A registered person is required to, 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.
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.
It is also provided in the Rule 50 of CGST Rules, that where at the time of receipt of advance,
- (i) the rate of tax is not determinable, the tax shall be paid at the rate of eighteen per cent.;
- (ii) the nature of supply is not determinable, the same shall be treated as inter-State supply
Aforesaid is explained by way of a chart as under:
IV. Whether invoice to be issued for Reverse Charge Mechanism (RCM)?
As per section 31 (3) (f) and (g) of the CGST Act, registered person should issue invoice and payment voucher in case of RCM.
It is provided at Rule 46 of CGST Rules that where an invoice is required to be issued under clause (f) of sub-section (3) of section 31, a registered person may issue a consolidated invoice at the end of a month for supplies covered under sub-section (4) of section 9, the aggregate value of such supplies exceeds rupees 5,000/- in a day from any or all the suppliers.
V. What are the contents of invoice?
- (a) name, address and Goods and Services Tax Identification Number 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 symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year;
- (c) date of its issue;
- (d) name, address and Goods and Services Tax Identification Number or Unique Identity Number, if registered, of the recipient;
- (e) name and address of the recipient and the address of delivery, along with the name of the State and its code, if such recipient is un-registered and where the value of the taxable supply is fifty thousand rupees or more;
- (f) name and address of the recipient and the address of delivery, along with the name of the State and its code, if such recipient is un-registered and where the value of the taxable supply is less than fifty thousand rupees and the recipient requests that such details be recorded in the tax invoice;
- (g) Harmonised System of Nomenclature code for goods or services;
- (h) description of goods or services;
- (i) quantity in case of goods and unit or Unique Quantity Code thereof;
- (j) total value of supply of goods or services or both;
- (k) taxable value of the supply of goods or services or both taking into account discount or abatement, if any;
- (l) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);
- (m) amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory tax or cess);
- (n) place of supply along with the name of the State, in the case of a supply in the course of inter-State trade or commerce;
- (o) address of delivery where the same is different from the place of supply;
- (p) whether the tax is payable on reverse charge basis; and
- (q) signature or digital signature of the supplier or his authorised representative
3 copies for goods and 2 copies for services
The invoice shall be prepared in triplicate, in the case of supply of goods, in the following manner, namely,-
|Copies to be marked as|
|ORIGINAL FOR RECIPIENT||ORIGINAL FOR RECIPIENT|
|DUPLICATE FOR TRANSPORTER|
|TRIPLICATE FOR SUPPLIER||DUPLICATE FOR SUPPLIER|
The serial number of invoices issued during a tax period shall be furnished electronically through the common portal in FORM GSTR-1.
As far as present invoice structure is concern the HSN code of the goods is required to be mentioned only in the case where invoice is issued by the manufacturer as i.e. for Excise Invoice. However, even trader, agent etc. is require to specify the HSN code of the goods. Vide Not. No. 12/2017 – CT and Not. No. 5/2017-IT, HSN Codes are notified as under:
|Turnover in preceding year||No. of digits of HSN|
|Upto 1.50 crore||Nil|
|More than 1.50 cr to 5 cr||2 digits|
|Above 5 cr||4 digits|
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; and
- (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
However, the aforesaid dispensation as per section 31 (3) (b) is only for invoices upto Rs 200.
Provided also that in the case of the 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, namely,-
- (i) name and address of the recipient;
- (ii) address of delivery; and
- (iii) name of the country of destination:
Invoice by GTA
Where the supplier of taxable service is a goods transport agency supplying services in relation to transportation of goods by road in a goods carriage, the said supplier shall issue a tax invoice or any other document in lieu thereof, by whatever name called, containing the gross weight of the consignment, name of the consigner and the consignee, registration number of goods carriage in which the goods are transported, details of goods transported, details of place of origin and destination, Goods and Services Tax Identification Number of the person liable for paying tax whether as consigner, consignee or goods transport agency, and also containing other information as mentioned under rule 46
Ticket to be considered as invoice
Where the supplier of taxable service is supplying passenger transportation service, a tax invoice shall include ticket in any form, by whatever name called, whether or not serially numbered, and whether or not containing the address of the recipient of service but containing other information as mentioned under rule 46.
Transportation of goods without issue of invoice.
As per Rule 55 of CGST Rules, for the purposes of:
(a) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known,
(b) transportation of goods for job work,
(c)transportation of goods for reasons other than by way of supply, or
(d) such other supplies as may be notified by the Board, the consigner may issue a delivery challan, serially numbered not exceeding sixteen characters, in one or multiple series, in lieu of invoice at the time of removal of goods for transportation, containing the following details, namely:-
- (i) date and number of the delivery challan;
- (ii) name, address and Goods and Services Tax Identification Number of the consigner, if registered;
- (iii) name, address and Goods and Services Tax Identification Number or Unique Identity Number of the consignee, if registered;
- (iv) Harmonised System of Nomenclature code and description of goods;
- (v) quantity (provisional, where the exact quantity being supplied is not known);
- (vi) taxable value;
- (vii) tax rate and tax amount – central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is for supply to the consignee;
- (viii) place of supply, in case of inter-State movement; and
- (ix) signature
The delivery challan shall be prepared in triplicate, in case of supply of goods, in the following manner, namely:–
- (a) the original copy being marked as ORIGINAL FOR CONSIGNEE;
- (b) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and
- (c) the triplicate copy being marked as TRIPLICATE FOR CONSIGNER.
Where goods are being transported on a delivery challan in lieu of invoice, the same shall be declared as specified in rule 138
Where the goods being transported are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of goods for the purpose of supply, the supplier shall issue a tax invoice after delivery of goods.
Where the goods are being transported in a semi knocked down or completely knocked down condition-
- (a) the supplier shall issue the complete invoice before dispatch of the first consignment;
- (b) the supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;
- (c) each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and
- (d) the original copy of the invoice shall be sent along with the last consignment.
Author: CA Pritam Mahure ([email protected])
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