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GST Invoicing

Updated: Mar 20, 2021

Under GST Regime, Issuing of Invoices is a major element. Every Registered Person has to issue an invoice in respect of the supply of Goods or Services as the case may be. Here we will take a look at different provisions under GST in respect of the issue of Invoice and Debit/Credit Notes.

1..How has to raise Invoice in GST

Under GST, a registered person has to raise an Invoice under two circumstances :

(a) When he makes the supply of taxable goods and services i.e. under forward charge

(b) When he receives taxable goods or services from unregistered Supplier i.e. under reverse charge

2. Time limit for issue of Invoice under GST

Now we take a look at what is the time limit for the issue of Invoices under the GST regime.

(a) Time limit for issue of Invoice in case of a supply of Goods

In the case of a supply of goods there are three scenarios that may happen :

(I) There is the movement of goods

In case of movement of goods, the invoice should be made at the time of removal of goods

(ii) There is no movement of goods

In case of non-movement of goods, the invoice should be made at the time of delivery of goods

(iii) When there are sale or return supplies

In this case, the invoice should be made before or at the time of supply or within six months from the date of removal of goods whichever is earlier

(b) Time limit for issue of invoice in case of a supply of services

In the case of a supply of services, the invoice should be issued within 30 days from the date of supply of services. The time limit of 30 days has been relaxed to 45 days in the case of the Banking and Insurance Business.

What should a GST Invoice necessarily contain i.e. important ingredients of GST Invoice are as under :

Typically, a GST Invoice should have the following ingredients :

(a) GSTIN of Supplier

(b) Serial No. of Invoice

(c) Date of Invoice

(d) GSTIN of Recipient (if registered)

(e) Name and address of Recipient (if not registered)

(f) HSN Code (optional for turnover less than 1.5 cr)

(g) Description of Goods or Services

(h) Total Value of Supply

(I) Taxable value of Supply

(j) Quantity in case of goods

(k) Amount of tax charged i.e. CGST, SGST or IGST

(l) Place of Supply

(m) Address of delivery (if it is different from the place of supply)

(n) Signature of Authorised person

GST Invoice to be issued in :

(I) triplicate in case of a supply of Goods i.e. original for the buyer, duplicate copy for the transporter, and triplicate for the supplier

(ii) it should be duplicate in case of a supply of services i.e. original for service recipient and duplicate for a service provider

Consolidated Tax Invoice :

There is also a concept of consolidated tax invoices in GST. A consolidated tax invoice can be issued in respect of supplies made to the unregistered recipients.

Consolidate tax invoice can be issued if the individual supply is less than Rs. 200 and the recipient is unregistered and he does not need an invoice. In this case, a consolidated invoice can be issued at the end of the day for all supplies affected during the day.

What is Bill of Supply :

Bill of Supply is to be issued by :

(a) Registered person supplying exempted goods or services, or

(b) a Registered person paying tax under composition scheme

In both the above cases, instead of a tax invoice, a bill of supply has to be issued. \

What is a Receipt Voucher :

When a recipient of goods or services makes an advance payment to the supplier, a receipt voucher has to be issued by the supplier to the recipient.

Also when at the time of payment, the rate of tax is not known tax has to be paid @ 18% and if the nature of supply is not determinable it is to be taken as inter-state supply.

What is Refund Voucher :

As above if the supplier receives payment in advance and does not make taxable supply and has to refund the amount to the recipient, then the refund voucher has to be prepared by the supplier, and the signature of the Recipient has to be obtained on that Refund Voucher.

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