1. The tax invoiceis a standard format required under the GST system. Sec 31 of the CGST Act 2017 mandates the issuance of an invoice or a bill of supply for every supply of Goods or Services.
2. Tax Invoice in respect of Goods:
The invoice shall be issued before or at the time of removal of goods for supply to the recipient.
3. Tax Invoice in respect of Services :
first proviso to Rule 47
Second proviso to Rule 47
A registered taxable 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, the tax charged thereon, and such other particulars as may be prescribed.
Time limit for issuing tax invoice for services
The invoice in case of a taxable supply of services shall be issued within a period of thirty days from the date of the supply of service.
A banking company or a financial institution, or NBFC, can issue an invoice within forty-five days from the date of supply of service.
An insurer/banking company / financial institution, including a non-banking financial company/ Telecom operator, or any other class of supplier of services as may be notified by the Government making taxable supplies of services between distinct persons as specified in Section 25, may issue the invoice before or at the time recording the same in books of account or before the expiry of the quarter during which the supply was made.
4. Rule 46 Contents of Tax invoice:Tax invoice issued by the registered person in respect of goods and services shall be containing the following particulars:
| (a) | Name, address, and GSTIN of the Supplier |
| (b) | The tax invoice number shall consist of – 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 symbolized as “-” and “/” respectively, and any combination thereof, unique for a financial year. |
| (c) | Date of issue of tax invoice |
| (d ) | Name, address, and GSTIN of the Recipient |
| (e) | Taxable supply of Rs 50000/- or more to the unregistered recipient – Name, address of the recipient, address of delivery, name of State, and its code. |
| (f) | In the case of taxable supply is less than Rs 50000, the above details in tax invoice are required only if the recipient requests it. |
| (g) |
4.1 Invoices for Exports or Supplies to SEZ
Supply meant for Export/ Supply to SEZ/ SEZ Developer for authorized operation on Payment of Integrated Tax.
Supply meant for Export/ Supply to SEZ/ SEZ Developer for authorized operation on Payment of Integrated Tax under Bond or Letter of Undertaking without payment of Tax.
5. Revised Invoice
Explanation to section 31
Revised invoice: A registered taxable person may, within one month from the date of issuance of a certificate of registration, 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 a certificate of registration to him.
The recipient can avail ITC against such a revised invoice issued by the supplier.
6. Tax Invoice for Small Value :
| Section 31(3)(b) | Tax invoice may not be issued if value goods or services or both is less than Rs 200 |
7. Invoice Cum Bill of Supply :
This provision also applies to a person who is paying GST on services under a simplified scheme (small taxable persons paying GST @ 6% on services). Thus, small taxable persons paying GST @ 6% on services shall issue ‘Bill of Supply’ and not ‘tax invoice’.
Where a registered person is supplying taxable as well as exempted goods or services or both to an unregistered person, a single “invoice-cum-bill of supply” may be issued for all such supplies.- inserted w.e.f. 13-10-2017
8. Receipt Voucher & Refund Voucher
Contents of Receipt Voucher:-
(a) Name, address, and GSTIN of the supplier. (b) A consecutive serial number (c) Date of issue of receipt voucher (d) Name, address and GSTIN of the recipient (e) description of goods or services (f) Amount of advance taken (g) Rate of tax (CGST/ SGST/IGST/UTGST/ CESS) (h) Amount of tax charged in respect of taxable services. (i) Place of supply along with the name of State and its code, in case of an Inter-State (j) Whether the tax is payable on reverse charge basis (k) Signature or digital signature of the supplier or his authorized representative.
Contents of Refund Voucher are identical to the requirements of Receipt Voucher except for that cross-reference of Receipt Voucher is required and the amount of refund is to be indicated, instead of the amount received as advance.
9. Self invoice and payment voucher for tax under RCM
Second proviso to Rule 46
A registered person who is liable to pay tax under RCM (reverse charge mechanism)] shall issue a self invoice in respect of goods or services received by him on the date of receipt of goods or services from the unregistered supplier.
A consolidated monthly invoice can be issued if a reverse charge applies under section 9(4) of the CGST Act where the value of such supplies exceeds Rs. 5,000 in a day from any or all suppliers
The consolidated invoice is not permissible in case tax is payable under reverse charge for specific services ( section 9(3) of the CGST Act).
10. Continuous Supplies :
In case of a continuous supply of services, provisions for the issue of tax invoice are as below.
Before the due date of payment – Where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment. Receipt voucher is required to be issued in case of advance received.
When due date of payment is not ascertainable, the date on which payment received – 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 receives payment
11. Supply of Services ceases before completion
| Section 31(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 effected before such cessation |
12. Goods sent on approval basis
Thus, the tax invoice must be issued within six months from removal.
Goods can be removed on an approval basis within the State or outside the State. Delivery Challan should be issued at the time of removal of goods. E-way bills will also be issued wherever applicable. The person carrying goods for such a supply can carry the invoice book so that he can issue the invoice once the supply is fructified. – CBE&C Circular No. 10/10/2017-GST dated 18-10-2017.
Removal of artwork to galleries for subsequent sale Artists removes their artworks to various galleries where these are exhibited. the artworks should be removed under-delivery challan and e-way bill (where applicable ). Once the artwork is sold, the tax invoice should be generated.
Removal of goods outside India for the exhibition : The removal of goods out of India for exhibition or on a consignment basis for export promotion is neither ‘supply’ nor ‘export’. CBI&C Circular No. 108/27/2019-GST dated 18.07.2019
Since it is not ‘export’, LUT or bond is not required. Goods should be sent under Delivery Challan. The exporter should maintain proper records in the form given in Annexure to the circular dated 18-7-2019. As and when goods are sold, the tax invoice should be issued. If goods are not brought back within six months, a tax invoice should be issued and GST paid.
13. Manner of Issuing Invoices :
(a) the original copy being marked as ORIGINAL FOR RECIPIENT
(b) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER
(a) the original copy being marked as ORIGINAL FOR RECIPIENT
13.1 Rule 48(3): The serial number of invoices issued during a tax period shall be furnished electronically through the Common Portal in FORM GSTR-1.
13.2 Rule 48(4) E-Invoicing The invoice shall be prepared by such class of registered persons as may be notified by the Government, by including such particulars contained in FORM GST INV 01 after obtaining an Invoice Reference Number by uploading information contained therein on the Common Portal
The government will notify a new GST e-invoice scheme under which businesses with a turnover of Rs 500 crore and above will generate all invoices on a centralized Government Portal starting October 1, 2020, The requirement is for supplies made to a registered person only
Every invoice issued by a person who is liable to issue E-Invoice in any manner other than the manner specified shall not be treated as an invoice.
The manner of issuing normal tax invoice shall not apply for issuing E-invoice under Rule 48(4)
14. Section 31A – Specified suppliers to provide the facility of e-payment option to recipients of goods or services: The Government may prescribe a class of registered persons who shall provide prescribed modes of electronic payment to the recipient of the supply of goods or services or both made by him. The suppliers will give the option to such recipient to make payment accordingly, –inserted videFinance (No. 2) Act, 2019.
Thus, the prescribed class of suppliers of goods or services will have to provide options to recipients of goods or services supplied by them, of making e-payment.
It is not mandatory that the recipient must make payment to the supplier through electronic mode only
15. Other Relevant Provisions
Penalty for Non-Compliance:-
15.1 If the tax invoice does not contain all prescribed details, a penalty up to Rs. 25,000 can be imposed – CBIC Circular No. 90/09/2019-GST dated 18-2-2019.
15.2 B2C invoice once issued cannot be converted into B2B tax invoice by adding GSTN – B2C invoice once issued cannot be converted into B2B tax invoice by adding GSTN – FAQ No. 7 issued by CBI&C on banking sector on 27-12-2018. Thus, care has to be taken before uploading the invoice in GSTR1.
15.3 Invoice issued to UN Agencies or embassies should indicate UIN – Supplier supplying goods or services to UN Agencies etc. should charge GST in his invoice. He should indicate UIN of the recipient so that the recipient can claim a refund from Government – CBIC press release dated 27-4-2018.
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Part 22 of the series will cover the topic ” Credit & Debit Notes under Sec 34 of CGST Act 2017