Introduction of Tax Invoice in GST - GST Ready Reckoner - GST

Tax Invoice in GST Introduction TAX INVOICE under section 31 (1) 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, issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed. Provided that the Government may, on the recommendations of the Council, by notification, specify the categories of goods or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed. (2) A registered person supplying taxable services shall, 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: Provided that the Government may, on the recommendations of the Council, by notification and subject to such conditions as may be mentioned therein, specify the categories of services in respect of which (a) any other document issued in relation to the supply shall be deemed to be a tax invoice; or (b) tax invoice may not be issued. (3) Notwithstanding anything contained in sub-sections (1) and (2) of section 31 (a) 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 ; (b) 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 such conditions and in such manner as may be prescribed; (c) a registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed: Provided that the registered person may not issue a bill of supply if the value of the goods or services or both supplied is less than two hundred rupees subject to such conditions and in such manner as may be prescribed; (d) a registered person shall, 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; (e) where, 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 ; (f) a registered person who is liable to pay tax under section 9(3) or (4) shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both; (g) a registered person who is liable to pay tax under section 9(3) or (4) shall issue a payment voucher at the time of making payment to the supplier. (4) 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 . (5) Subject to the provisions of section 31(3)(d), in case of continuous supply of services, (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. (6) In a case where the supply of services ceases under a contract before the completion of the supply, the invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply made before such cessation. (7) where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued before or at the time of supply or six months from the date of removal, whichever is earlier . Explanation . For the purposes of this section, the expression tax invoice shall include any revised invoice issued by the supplier in respect of a supply made earlier. Summary : Tax invoice can be raised only by registered person a) in case of taxable supply of goods or services or both and b) in case he receives taxable goods or services or both from unregistered person where he pays tax under reverse charge basis. However no tax invoice may be raised if the value of taxable goods or supply or both is less than two hundred rupees. Bill of supply is issued in case of supply of exempted goods or non taxable supply or supply by a person paying tax under composition levy. It is issued when the supplier is not required to charge any tax. Revised invoice can be issued by a registered person against supplies made during the period from the date of application of registration till the grant of registration. Receipt voucher is issued in case of receipt of advance payment for the supply of goods or services or both. Refund voucher is issued in case of return of supply of goods services in respect of which advance payment is being made. Payment voucher is issued by the person making payment under reverse charge at the time of making payment to the supplier . Contents of tax invoice in case of goods or services [as per rule 46 of CGST Rules] There is no format prescribed for an invoice, however, Invoice rules makes it mandatory for an invoice to have following fields (only applicable field are to be filled): Name, address and GSTIN of the supplier; Name, address and GSTIN or UIN, if registered, of the recipient A consecutive serial number, 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; Date of its issue; Name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is un-registered and where the value of taxable supply is fifty thousand rupees or more; 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; HSN code of goods or Service Accounting Code of services; Description of goods or services; Quantity in case of goods and unit or Unique Quantity Code thereof; Total value of supply of goods or services or both; Taxable value of supply of goods or services or both taking into account discount or abatement, if any; Rate of tax (IGST, CGST, SGST/UTGST, or cess); 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 State, in case of a supply in the course of inter-State trade or commerce; 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 authorized representative Quick Reference code, having embedded Invoice Reference Number (IRN) in it, in case invoice has been issued in the manner prescribed under rule (4)48 .] A declaration as below, that invoice is not required to be issued in the manner specified under rule (4)48 , in all cases where an invoice is issued, other than in the manner so specified under the rule 48(4), by the taxpayer having aggregate turnover in any preceding financial year from 2017-18 onwards more than the aggregate turnover as notified under the rule 48(4)- I/We hereby declare that though our aggregate turnover in any preceding financial year from 2017-18 onwards is more than the aggregate turnover notified under rule 48(4), we are not required to prepare an invoice in terms of the provisions of the rule 48(4) Note : Invoice Issued to UN agencies or embassies Should Indicate UIN : in his invoice so that the receipient can claim refund from Government Important Notification Circular 1. GST department has been issued a advisory on 1. Draft Manual on Invoice Management System 2. Frequently Asked Questions on IMS 2. Certain clarifications on advance receipt, cancellation of contract, credit notes, refund voucher, etc CBIC Circular No. 137/07/2020-GST dated 13th April 2020 issued certain clarifications on advance receipt, cancellation of contract, credit notes, refund voucher, etc., which is relevant not only in the context of COVID19 economic slowdown, but also otherwise in the normal course of any business. Relevant extracts as below: Issue 1 : An advance is received by a supplier for a service contract which subsequently got cancelled. The supplier has issued the invoice before supply of service and paid the GST thereon. Whether he can claim refund of tax paid or is he required to adjust his tax liability in his returns? Clarification 1 : In case GST is paid by the supplier on advances received for a future event which got cancelled subsequently and for which invoice is issued before supply of service, the supplier is required to issue a credit note in terms of section 34 of the CGST Act. He shall declare the details of such credit notes in the return for the month during which such credit note has been issued. The tax liability shall be adjusted in the return subject to conditions of section 34 of the CGST Act. There is no need to file a separate refund claim. However, in cases where there is no output liability against which a credit note can be adjusted, registered persons may proceed to file a claim under Excess payment of tax, if any through Form GST RFD-01 . Issue 2 : An advance is received by a supplier for a service contract which got cancelled subsequently. The supplier has issued receipt voucher and paid the GST on such advance received. Whether he can claim refund of tax paid on advance or he is required to adjust his tax liability in his returns? Clarification 2 : In case GST is paid by the supplier on advances received for an event which got cancelled subsequently and for which no invoice has been issued in terms of section 31 (2) of the CGST Act, he is required to issue a refund voucher in terms of section 31 (3) (e) of the CGST Act read with rule 51 of the CGST Rules. The taxpayer can apply for refund of GST paid on such advances by filing Form GST RFD-01 under the category Refund of excess payment of tax . Issue 3 : Goods supplied by a supplier under cover of a tax invoice are returned by the recipient. Whether he can claim refund of tax paid or is he required to adjust his tax liability in his returns? Clarification 3 : In such a case where the goods supplied by a supplier are returned by the recipient and where tax invoice had been issued, the supplier is required to issue a credit note in terms of section 34 of the CGST Act. He shall declare the details of such credit notes in the return for the month during which such credit note has been issued. The tax liability shall be adjusted in the return subject to conditions of section 34 of the CGST Act. There is no need to file a separate refund claim in such a case. However, in cases where there is no output liability against which a credit note can be adjusted, registered persons may proceed to file a claim under Excess payment of tax, if any through FORM GST RFD-01 .