ISSUE OF TAX INVOICE IN SPECIFIC CASES

[Dr. Sanjiv Agarwal]

Tax Invoice by Input Service Distributor (ISD)

Under section 17 of the model GST law, an Input Service Distributor (ISD) has to issue a prescribed document to distribute the credit. As per explanation to section 23 of model GST law dealing with tax invoice, it has been clarified that the expression ‘tax invoice’ shall be deemed to include a document issued by an Input Service Distributor under section 17. Thus, an ISD will issue a document which will deemed to be a tax invoice.

According to Rule 5(1) of draft GST Invoice Rules, tax invoice issued by an Input Service Distributor(ISD) shall contain the following details:

1. name, address and GSTIN of the Input Service Distributor(ISD),
2. a consecutive serial number containing only alphabets and/or numerals, unique for a financial year,
3. date of its issue,
4. following details:
   1. name,
   2. address,
   3. GSTIN of the supplier of services,
   4. the credit in respect of which is being distributed,
   5. the serial number, and
   6. date of invoice issued by such supplier,
5. name, address and GSTIN of the recipient to whom the credit is distributed,
6. amount of the credit distributed, and
7. signature or digital signature of the supplier or his authorized representative.

According to explanation to section 23 of model GST law read with proviso to Rule 5(1) of draft GST Invoice Rules, where an Input Service Distributor (ISD) is an office of a banking company or a financial institution including a non-banking financial company (NBFC), a tax invoice shall include any document in lieu thereof, by whatever name called, whether or not serially numbered but containing the information as mentioned in Rule 5(1)

Therefore, where the taxable person is an input service distributor (ISD), an office of a banking company or a financial institution including a NBFC, documents issued containing prescribed particulars in lieu of tax invoice then such documents shall be considered as tax invoice for supplies made by taxable person.

Tax Invoice by Banking Company / Financial Institution / Non-banking Financial Company (NBFC)

According to Rule 5(2) of draft GST Invoice Rules, where supplier of taxable service is a banking company or a financial institution including a non-banking financial company, such supplier shall issue a tax invoice or any other document in lieu thereof, by whatever name called, whether or not serially numbered, and whether or not containing the address of the recipient of taxable service but containing other information as prescribed under Rule 1 of draft GST Invoice Rules.

Therefore, where the taxable person is banking company or a financial institution including a NBFC, issues documents containing prescribed particulars in lieu of tax invoice, then such documents shall be considered as tax invoice for supplies made by taxable person.

Tax Invoice by Goods Transport Agency (GTA)

According to Rule 5(3) of draft GST Invoice Rules, where supplier of taxable service is a goods transport agency supplying services in relation to transportation of goods by road in a goods carriage, such 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 consignor 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, GSTIN of the person liable for paying tax whether as consignor, consignee or goods transport agency.

Accordingly, supplier of taxable service is a goods transport agency (GTA) supplying services in relation to transportation of goods by road in a goods carriage shall issue-

1. tax invoice or any other document in lieu thereof,
2. containing the following details:
   1. gross weight of the consignment,
   2. name of the consignor and the consignee,
   3. registration number of goods carriage in which the goods are transported,
   4. details of goods transported,
   5. details of place of origin and destination,
   6. GSTIN of the person liable for paying tax whether as consignor, consignee or goods transport agency, and
   7. other prescribed information.

It should also contain other information as prescribed under Rule 1.

Tax Invoice by Passenger Transportation Service Provider

According to Rule 5(4) of draft GST Invoice Rules, where supplier of taxable service is supplying passenger transportation service, a tax invoice shall include ticket in any form, by whatever name called, and whether or not containing the address of the recipient of service, but containing other information as prescribed under Rule 1. Thus, passengers tickets can also be considered as a tax invoice.