TAX INVOICE UNDER GOODS AND SERVICES TAX
Invoice is a commercial instrument issued by a seller to a buyer. It identifies both the trading parties and lists, describes, and quantifies the items sold, shows the date of shipment and mode of transport, prices and discounts, if any, and delivery and payment terms.
A registered person must issue a tax invoice before, or at the time of removal of goods for supply to the recipient. For supplying services , GST invoices can be issued before, at, or even after the time of supply.
When to issue an invoice
A GST invoice should be issued by a taxable person under GST while supplying goods or services. An invoice for goods must be issued before or at the time of:
- Removal of goods for supply to the recipient, where the supply involves movement of goods; or
- Delivery of goods or making available thereof to the recipient, in any other case.
In case of supply of services, the invoice must be issued before or after the provision of service but within a period of 30 days from the date of supply of service. In case the supplier of services is an insurer or a banking company or a financial institution, including a non-banking financial company, an invoice must be issued within 45 days from the date of the supply of service.
Under GST a tax invoice is an important document. It not only evidences supply of goods or services but is also an essential document for the recipient to avail Input Tax Credit (ITC). A registered person cannot avail of input tax credit unless he is in possession of a tax invoice or a debit note
Not required to issue an invoice
An invoice or a bill of supply need not be issued if the value of the supply is less than Rs. 200/- subject to specified conditions.
Contents of invoice
There is no format prescribed for an invoice, however,
Invoice rules makes it mandatory for an invoice to have
- Name, address and GSTIN of the supplier
2. Tax invoice number (it must be generated consecutively and each tax invoice will have a unique number for that financial year)
3. Date of issue
4. If the buyer (recipient) is registered then the name, address and GSTIN of the recipient
5. If the recipient is not registered AND the value is more than Rs. 50,000 then the invoice should carry:
i. name and address of the recipient,
ii. Address of delivery,
iii.State name and state co
6. hsn code of goods or accounting code of services**
7. Description of the goods/services
8. Quantity of goods (number) and unit (metre, kg etc.)
9. Total value of supply of goods/services
10.Taxable value of supply after adjusting any discount
11. Applicable rate of GST
(Rates of CGST, SGST, IGST, UTGST and cess clearly mentioned)
12. Amount of tax
(With breakup of amounts of CGST, SGST, IGST, UTGST and cess)
13. Place of supply and name of destination state for inter-state sales
14. Delivery address if it is different from the place of supply
15. Whether GST is payable on reverse charge basis.
16. Signature of the supplier
Bill of supply
Businesses even though registered under GST cannot charge any tax on the invoice issued by them. Such dealers have to issue a Bill of Supply.
A Bill of Supply is issued when GST is not applicable on a transaction or when GST is not to be recovered from the customer.
Contents of Bill of Supply
Bill of Supply should have:
- Name, address, and GSTIN of the supplier.
- Date of its issue
- 3. Bill of Supply number (it must be generated consecutively and each Bill of Supply will have a unique number for that financial year)
- Name, address and GSTIN or UIN, if registered, of the
- HSN Code of goods or Accounting Code for services;
- Description of goods or services or both
- Value of supply of goods or services or both
- Signature or digital signature of the supplier
A registered person may, within one month from the date of issuance of certificate of registration and in such manners has been prescribed in the Invoice Rules, 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.
Copies of Invoices should be issued
- In case of supply of goods – 3 copies
- In case of supply of services – 2 copies