Documentation: Tax invoices (Sec 31 and 32)

04/11/2021 0 By indiafreenotes

The tax invoice is 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.

Section 31; Tax Invoice:

(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):

(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 sub-section (3) or sub-section (4) of section 9 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 sub-section (3) or sub-section (4) of section 9 shall issue a payment voucher at the time of making payment to the supplier.

Bill of supply: A bill of supply as per section 31(3)(c) is required to be issued in the following two cases:

(a) Where the supplier is a registered person who has opted for composition tax under section 10 of the Act (and shall not charge tax on the bill of supply); or

(b) Where the goods / Services being supplied by any registered person are wholly exempted.

Documents required to be issued in respect of supplies liable to tax under reverse charge mechanism [Section 31(3)(f) & (g)]

(a) Where tax is payable on reverse charge basis in terms of Section 9(3) or 9(4), or the corresponding provisions of the IGST Act, 2017, the recipient of supply is required to pay tax on reverse charge basis. In this regard, the following may be noted:

There are two cases:

Supplier is registered: Tax Invoice not required and payment voucher required.

Supplier is not registered: Tax Invoice required and payment voucher required.

Tax Invoice in respect of Goods:

Section 31(1) A registered person supplying taxable goods shall issue a tax invoice.

The invoice shall be issued before or at the time of removal of goods for supply to the recipient.

Where the supply does not involve the movement of goods, the invoice shall be issued when goods made available to the recipient.

Removal”, in relation to goods, means dispatch of the goods for delivery by the supplier or collection of the goods by the recipient.
Proviso to section 31(1) Central/State Government may, on the recommendation of the GST Council, by notification, specify the categories of goods and/or supplies in respect of which the tax invoice shall be issued,

 

Tax Invoice in respect of Services:

Section 31(2)

 

 

 

 

Rule 47

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.

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)

First proviso to Rule 46.

HSN code of goods or Accounting Code of services:

CBI&C can give relaxation in indicating the number of digits of HSN /SAC code for the class of registered persons.

(h) Description of goods or services
(i) Quantity & unit of measurement (in case of goods).
(j) The total value of the supply of goods or services or both
(k) The taxable value of the supply of goods or services or both
(l) Rate of tax (Central Tax, State Tax, Integrated Tax, Union Territory Tax or cess)
(m) Amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory tax or cess)
(n) Place of supply along with the name of State, in case of Inter-State supply provided for penalty up to Rs 25000 in case of failure to mention these details in the tax invoice.
(o) Address of delivery where the same is different from the place of supply [In case of a bill to ship to transactions]
(p) Whether the tax is payable on a reverse charge basis
(q)

Fifth proviso to rule 46

The signature or digital signature of the supplier or his authorized representative

The signature or digital signature of the supplier or his authorized representative shall not be required in the case of issuance of an electronic invoice in accordance with the provisions of the Information Technology Act, 2000.

Sixth proviso to rule 46 The government may specify that tax invoice shall have Quick Response (QR) Code, subject to conditions and restrictions as may be specified

Invoices for Exports or Supplies to SEZ

Third proviso to Rule 46 In the case of exports of goods or services or supplies to SEZ unit or developer, the invoice shall carry an endorsement as follows:

Supply meant for Export/ Supply to SEZ/ SEZ Developer for authorized operation on Payment of Integrated Tax.

or

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.

In addition to the other requisite details, the invoice shall contain the name of the Country of Destination.

Section 32: Prohibition of unauthorised collection of tax

(1) A person who is not a registered person shall not collect in respect of any supply of goods or services or both any amount by way of tax under this Act.

(2) No registered person shall collect tax except in accordance with the provisions of this Act or the rules made there under.

Section 33: Amount of tax to be indicated in tax invoice and other documents

Notwithstanding anything contained in this Act or any other law for the time being in force, where any supply is made for a consideration, every person who is liable to pay tax for such supply shall prominently indicate in all documents relating to assessment, tax invoice and other like documents, the amount of tax which shall form part of the price at which such supply is made.