Tax Invoice, Credit note & Debit Note related Queries with Answers 2024. FAQ’s on Tax Invoice, Credit note & Debit Note: FAQ’s on GST Tax Invoice as per latest GST Bill 2024, FAQ’s on GST Credit note & Debit Note as per GST Bill 2019. CBEC has released Frequently asked questions (FAQ’s) on Goods and Services Tax. Finance Ministry Release Various FAQs on GST, Here we are providing FAQs on GST Tax Invoice, Credit note & Debit Note as per Goods and Service Tax Law 2024. Check Various Question and Answers on Tax Invoice, Credit note & Debit Note. Now scroll down below n check more details for “FAQ’s on Tax Invoice, Credit note & Debit Note”
Definitions –
“credit note” means a document issued by a registered person under sub-section (1) of section 34;
“debit note” means a document issued by a registered person under sub-section (3) of section 34;
“invoice” or “tax invoice” means the tax invoice referred to in section 31; – On a plain reading of the law, it appears that the terms “invoice” and “tax invoice” have been used inter-changeably to refer to that document that is prescribed by law, as a document that shall be issued by the registered person on making taxable supplies. The tax invoice should contain all the prescribed details such as the description of the goods, quantity, value and tax charged on the supply.
Q1. When should a Tax Invoice be issued for supply of Goods?
Ans. The answer depends upon the type of goods. As per Sec.31(1), if the nature of the supply is such that:
- Movement of goods is involved, then the tax invoice has to be issued before or at the time of removal of the goods for supply to the recipient.
- Movement of goods is not involved, then the tax invoice has to be issued before or at the time of the goods are delivered to the recipient or when the goods are made available to the recipient.
Q2. Do I have to issue an invoice even if I remove goods for ‘sale on approval basis’?
Ans – In such cases, as per sec. 31(7) tax invoice need not be raised at the time of removal. This is because the removal cannot be said to be made for the purpose of supply to the recipient, as it is not certain (at the time of dispatch of goods) that the sending of goods will result in a ‘supply’. However, on or before the confirmation of the supply by the other party, the tax invoice has to be issued. The law provides a time limit of 6 months from the date of removal, during which the goods will not be treated as supplied. Where no confirmation is received within such period, a tax invoice should be issued on the day immediately succeeding the 6-month period.
Q3. I am constructing a building for my client. The client is required to pay me on completion of plinth, 1s
Ans. The above instance is a case of continuous supply of services. Here, since the payment is linked to completion of an event (i.e., milestones set in the contract), an invoice should be raised on or before the due date of completion of event. Therefore, an invoice be raised on or before completion of the 1st floor and the second time on or before the completion of 2nd floor
Q4. I have a registration as an Input Service Distributor. Am I required to raise invoices even though no taxable supplies are made from this registration number?
Ans. Yes. An Input Service Distributor (ISD) should issue a tax invoice being an ‘ISD invoice’ for distributing credits to the GST registration that have the same PAN as that of the ISD. Such invoice will be different from invoices reflecting supply of goods or services (refer Invoice Rules). This is a document required under Section 20 of the Act.
Q5. What are the circumstances in which a Credit Note is to be issued?
Ans. As per Sec. 34(1) ,for issuing a Credit note, an invoice for a supply should have been issued earlier. A credit note may be issued in the following cases:
- The taxable value on which the tax is collected is more than the actual taxable value;
- The tax charged is more than what should have been charged;
- The recipient has returned the goods;
- The recipient has found that the goods or services supplied are deficient.
Q6. What should the contents of a tax invoice be?
Ans. Normally, the tax invoice should have the following details:
- (a) Name, address, GSTIN of the supplier
- (b) Consecutive Serial Number unique for a financial year having alphabets, numerals and special characters being “-“or “ / “ only
- (c) Date of Issue
- (d) Name and address of the recipient
- (e) GSTIN/UID of the recipient, if registered
- (f) HSN code of Goods or Accounting Code of Services
- (g) Description of Goods / Services
- (h) Quantity and Unit(or Unique Quantity Code) in case of Goods
- (i) Total Value of Goods and Services
- (j) Post discount/abatement taxable value of Goods and Services
- (k) Rate of Tax, Separately for each type of tax (Central tax, State tax, Integrated tax, Union territory tax)
- (l) Amount of Tax Charged
- (m)Place of Supply along with the name of the State if the supply is an inter-State supply
- (n) Place of delivery if different from place of supply
- (o) Whether tax is payable on reverse charge
- (p) Signature/Digital Signature of the Suppler or his authorised representative.
Q7. What are the mandatory details required in the invoice/ document issued by a Goods Transport Agency?
Ans. A GTA supplying services in relation to transportation of goods by road in a goods carriage, is required to have the following details in its invoices (in addition to other details required:
- (a) Gross weight of the consignment
- (b) Name of the Consignor and the Consignee
- (c) Registration number of the goods carriage
- (d) Details of goods transported
- (e) Details of place of origin and destination
- (f) GSTIN of the person liable to pay tax (whether as consignor, consignee or GTA).
Q8. What are the contents of a ‘Bill of Supply’?
Ans. A Bill of Supply should have the following details :
- (a) Name, address, GSTIN of the supplier
- (b) Consecutive Serial Number unique for a financial year having alphabets/ numerals and special characters being “-“ or “ / “ only
- (c) Date of Issue
- (d) Name, and address of the recipient
- (e) GSTIN/UID of the recipient, if registered
- (f) HSN code of Goods or Accounting Code of Services
- (g) Description of Goods / Services
- (h) Post discount/abatement value of Goods and Services
- (i)Signature/Digital Signature of the Suppler or his authorised representative.
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