GST Act gives immense importance to invoice because it is one of the most important documents based on which tax credit is availed by the recipient of goods or services or both. Section 31 of the CGST/SGST Act deals with the subject of ‘tax invoice’.
An “invoice” or “tax invoice” is a document issued to the addressee/recipient specifying, amongst other things, the description of taxable goods or services or both as well as value of taxable supply. It is usually issued after the completion of the supply of goods or services or both.
Who can issue a tax invoice?
- Tax invoice can be issued by supplier of goods or services or both who must be registered a person making a supply of taxable goods or services or both.
- Unregistered person cannot issue a tax invoice.
- Registered person who has opted to pay tax under composition scheme, is also barred from issuing tax invoice.
Details of invoices or other documents with respect to supply of goods and services:
1. Tax invoice - A registered person supplying taxable goods shall before or at the time of,
a. removal of goods for supply to the recipient, where supply involves movement of goods
b. delivery of goods or making available thereof to the recipient in other cases.
Issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed.
2. Tax invoice - 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, quantity and value of services, the tax charged thereon and such other particulars a may be prescribed.
3. Revised Tax invoice - A registered person supplying taxable services or goods or both may within one month from the date of issuance of 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 certificate of registration to him. This provision has been made to enable the buyers to claim tax credit for the purchases made from a dealer who has become liable to pay tax during the year and made application within a stipulated period of 30 days. Further, a consolidated revised tax invoice may be issued in respect of all taxable supplies made to an unregistered recipient.
4. Bill of supply - A registered person supplying exempted goods or services or both or paying tax under the composition scheme shall issue a bill of supply, instead of tax invoice, containing such particulars and in such manner as may be prescribed.
5. Receipt voucher – 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 such payment.
6. Refund voucher – 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 such payment, a refund voucher against such payment.
7. Payment voucher - Where a registered person is liable to pay tax under Reverse charge, then such person shall issue a payment voucher at the time of making payment to the supplier.
8. Delivery Challan – In case of transportation for the purposes of :
a. Supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known
b. Transportation of goods for job work
c. Transportation of goods for reasons other than by way of supply
d. Such other supplies as may be notified by the Board,
the consignor may issue a delivery challan, serially numbered, in lieu of invoice at the time of removal of goods for transportation.
9. Credit Note- A registered person, who has supplied any goods or services or both , may issue to the recipient of the supply, a credit note under any of the following situations:
a. Where the taxable value or tax charged in the invoice exceeds the taxable value or tax payable in respect of such supply, or
b. Where the goods are returned by the recipient, or
c. Where goods or services or both supplied are found to be deficient.
10.Debit Note- A registered person, who has supplied any goods or services or both , may issue to the recipient of the supply a debit note where the taxable value or tax charged in the invoice is found to be less than the taxable value or tax payable in respect of such supply.
11. No Invoice or Bill of supply to be issued – In cases where the value of goods or services or both supplied is less than Rs.200/-, a registered person may not issue a tax invoice/bill of supply subject to the satisfaction of the following cumulative conditions :
a. The recipient is not a registered person and
b. The recipient does not require such invoice/bill of supply.
However, such a registered person shall issue a consolidated tax invoice/bill of supply for such supplies at the close of each day.