GST - Tax invoice, Debit Note and credit Note

[CA Akash Phophalia]

1. Introduction

Invoice is a document which provides evidence as to existence of transaction of sale or purchase of goods or the agreement of supply. GST act also gives immense importance to invoice and named it as tax invoice containing details provisions as stated hereunder.

2. Meaning of tax invoice

Tax Invoice shall be deemed to include a document issued by an Input Service Distributor and also include any supplementary or revised invoice issued by the supplier in respect of a supply made earlier.

3. Issue of tax invoice

Supply of goods

Every registered person is required to issue a tax invoice at the time of supply of taxable goods and the invoice shall contain following particulars:-

• Description of goods;   
• Quantity of goods;
• Value of goods;
• Tax charged on Value of goods; and
• Such other particulars as may be prescribed.

Supply of services

Every registered taxable person is required to issue a tax invoice at the time of supply of taxable service and the said invoice shall contain all the following essential details as –

• Description of Services;          
• Value of Services;
• Tax charged on Value of Services; and
• Such other particulars as may be prescribed.

4. Revised Invoice

If a Registered Taxable Person issued any invoice before issue of registration certificate then such registered person may issue a revised notice for the period starting from the effective date of registration and date of issuance of certificate of registration.

5. Composition levy

A registered taxable person who opts for composition levy shall at the time of supply of goods or services not issue a tax invoice. Instead it had to issue a bill of supply containing the particulars as required.

6. Non-taxable supply

A registered taxable person who supplies non-taxable goods or services shall instead of issuing a tax invoice had to issue a bill of supply containing the particulars as required.

7. Tax Indication in the Tax Invoice

Where A Registered Dealer providing supply for a consideration and which is liable to tax, then tax on such supply shall necessarily be indicates in all documents relating to assessment, tax invoice and other documents.

8. Credit Notes

• When a Credit note should be issued

When a registered dealer issued a tax invoice for supply of goods or services and in such invoice the amount of tax charged and taxable value is more than the taxable value and tax payable, then the taxable person, who supplied the goods, may issue a credit note to the recipient containing such particulars as may be prescribed.

• Time limit for issuing Credit Note

Thirtieth day of September following the end of the financial year in which such supply was made or date of filling of the relevant annual return; whichever is earlier:

• No credit note shall be issued by the said person if the incidence of tax and interest on such supply has been passed by him to any other person

9. Debit Note

• When a Debit Note should be issued

When a Registered Dealer issued tax invoice for supply of goods or services and in such invoice the amount of tax charged and taxable value is less than the taxable value and tax payable, then said taxable person, who supplied the goods, may issue a debit note to the recipient containing such particulars as may be prescribed.

• Time limit for issuing Credit Note

Thirtieth day of September following the end of the financial year in which such supply was made or date of filling of the relevant annual return; whichever is earlier:

10. Furnishing details of debit and credit note in return

• If any registered taxable person issues and receives a credit or debit note in relation to a supply of goods or services, he shall declare the details of credit and debit note in the return for the month during which the credit or debit note has been issued or received.
• Time limit for details given in the return

Return for any month but not later than month of September following the end of the financial year in which such supply was made or the date of filing of the relevant annual return; whichever is earlier.

• The tax liability shall be adjusted in the manner specified in GST Act.

11. Conclusion

Thus, GST act in itself contains various provisions in relation to time of issue and content of invoices and also contains provisions where the invoice is under-valued or over-valued in addition to the manner and timing of furnishing of the related details.