Introduction

A GST invoice is commonly known as GST bill which is issued by a supplier to receiver of goods or services. We all know that GST law is based on supply and invoice is an essential document which is evidence of supply. So, now we will discuss about invoicing rules under GST-

Contents of tax invoice

Section 31 describes GST invoice and here are the particulars which are mandatory in an Invoice-

• Name, address and GSTIN of supplier
• A consecutive serial number not exceeding 16 characters, in one or multiple series
• Date of issue
• If recipient is registered- Name, address, and GSTIN of recipient
• If recipient unregistered- Name, address and state (if value is RS. 50000)
• HSN code for goods or services
• Description of goods or services
• Quantity in case of goods and unit
• Total value of supply
• Taxable value of supply
• Rate of tax
• Amount of tax
• Place of supply, in case of interstate supply
• Address of delivery
• Tax payable under reverse charge
• Signature or digital signature of supplier

Who is required to issue tax invoice

Every registered person who is supplying taxable goods and services or receiving taxable goods or services from unregistered supplier is required to issue a tax invoice.

Time limit for issue of invoice

Time limit for issuing invoice in case of goods are as follows-

• If the supply involves movement, then before or at the time of removal of goods
• If no movement is involved, then at the time of delivery
• If goods are being sent on an approval basis, then before or at the time of supply or within 6 months from removal of goods, whichever is earlier. To understand this clearly see the below example-

An international trade exhibition is going to be held in United States of America in January. Aayat Niryat Export House has participated in it. It sends 100 units of taxable goods manufactured by it to USA for display. The activity off sending/taking goods out of India for exhibition is in the nature of sale of approval basis. So, the invoice must be issued before or at the time of supply or 6 months from date of removal.

Time limit for issuing invoice in case of services are as follows-

1. Generally, invoice must be issued within 30 days from providing service
2. For banks and insurance company it must be issued within 45 days (about 1 and a half months)

If it is continuous supply of service (a service for a period exceeding 3 months), then invoice should be issued as follows -

Example -

A registered person provides the services of repair and maintenance of electrical appliances. On 1 April, it entered into an annual maintenance contract with P for its Air Conditioner and Washing Machine. As per the terms of contract it provided services on 1 april,1 July,1 October and 1 January. So, this is a case of continuous supply of service where the due date of payment is ascertainable from the contract. So, the invoice shall be issued on or before the due date of payment.

Manner of issuing the invoice

In case of supply of goods -

Invoice shall be prepared in Triplicate. Original for Recipient, duplicate for transporter, triplicate for supplier.

In case of supply of service -

Invoice shall be prepared in Duplicate. Original for Recipient, duplicate for supplier.

HSN code requirement

Person with annual turnover of less than or equal to Rs. 5 crores in preceding financial year are required to mention at least 4 digits in invoices (B2B supply) and if the annual turnover is more than 5 crores in preceding financial year then it is required to mention at least 6 digits of HSN code.

Revised Tax Invoice

These invoices can be issued by a person for a period starting from effective date of registration till date of issuance of certificate of registration. Revised tax invoice shall be issued within Month from the date of issuance of certificate of registration.A registered supplier may issue a consolidated revised tax invoice in respect of all supplies made by him to unregistered receiver but if in case of interstate supplies and where the value of supply is more than 2.5 lakhs then separate invoice must be issued.

Consolidated Tax Invoice

Consolidated Tax Invoice shall be issued at the close of each day in respect of all supplies which fulfill following conditions-

1. Value of the supply is less than 200 Rs.
2. Recipient is unregistered
3. Recipient does not ask supplier to issue invoice

Bill of supply

Every registered person who is supplying exempted goods or services, paying tax under composition scheme (a scheme for small businessman) is require to issue bill of supply instead of tax invoice. On the top of the bill, it is mentioned that it is a bill of supply. Contents of bill of supply are as follows-

1. Name, address and GSTIN of supplier
2. A consecutive serial number not exceeding 16 characters, in one or multiple series
3. Date of issue
4. If recipient is registered- Name, address, and GSTIN of recipient
5. If recipient unregistered- Name, address and state (if value is RS. 50000)
6. HSN code for goods or services
7. Description of goods or service
8. Total value of supply
9. Signature or digital signature of supplier

Receipt and Refund voucher

When a supplier receives advance payment in relation to a supply of goods/services then he issues a receipt voucher to the recipient which is evidence of payment received. If after receiving the payment supply is not made, then supplier is required to issue a refund voucher. Content of vouchers are as follows-

1. Name, address and GSTIN of supplier
2. A consecutive serial number not exceeding 16 characters, in one or multiple series
3. Date of issue
4. If recipient is registered- Name, address, and GSTIN of recipient
5. If recipient unregistered- Name, address and state (if value is RS. 50000)
6. Description of goods or service
7. Amount of advance taken /amount of refund made
8. Rate of tax
9. Amount of tax
10. Place of supply in case of interstate supply
11. Whether tax is payable under reverse charge
12. Signature or digital signature of supplier
13. Sr. No. And date of voucher

Note-Where at the time of receipt of advance rate of tax or nature of supply is not determinable then rate of tax should be taken as 18% and nature of supply should be treated as interstate supply.

Payment Voucher

It is the only document which is issued by recipient under reverse charge basis. When the recipient is registered and receives supplies taxable on reverse charge basis then recipient will issue a Payment Voucher at the time of making the payment to supplier.

Delivery Challan

Where there is movement of goods which can be for reasons other than supply like-

1. Where the quantity at the time of removal is not known (like in case of liquid gases) or
2. for job work
3. Goods transported in batches or lots
4. Goods are mover within a state or to another state for supply on approval basis

Delivery challan is issued in triplicate and declared in e-way bill. It must be serially numbered not exceeding 16 characters in one or multiple series. It is issued at the time of removal of goods for transportation. Particulars of delivery Challan are as follows-

1. Date and number of delivery challan
2. Name, address and GSTIN of the consigner if registered
3. Name, address and GSTIN of consignee, if registered
4. HSN code and description of goods
5. Quantity (provisional where the exact quantity is not known)
6. Taxable value
7. Tax rate
8. Place of supply
9. Signature

Credit Note and Debit Note

Credit note can be issued by supplier in following cases -

1. Sales Return
2. The taxable value in invoice is more than the actual taxable value of the supply
3. Tax charged in the invoice is more than actual tax payable

Debit note can be issued by supplier in following cases -

1. The taxable value in invoice is less than the acutal taxable value of supply
2. Tax charged is less than actual tax payable.

Time limit for issuance of credit notes – in respect of any supply made in a financial year credit note may be issued up to 30th November of the following financial year. A credit note can be declared in GST return up to 30th November of next financial year or date of annual return whichever is earlier.

E-invoicing

For more accuracy and transparency Government has implemented concept of E- invoicing which mandates all registered businesses to generate E- invoice having aggregate turnover of more than 10 crores in any preceding financial year from 2017-18 onwards.

Overall workflow of E- invoice

• Taxpayers create GST invoices on their own accounting or billing system as per e- invoice schema (which has a uniform format and Form GST INV-1)
• Taxpayers upload the E-invoice schema to IRP
• IRP generates IRN
• IRP digitally signs e- Invoice and add a QR code
• IRP returns E- invoice to supplier
• Supplier shares E- invoice with receiver (along with QR code)

Important parts are auto populated from GST systems like GSTR 1 of supplier and from E- way bill system like Transporter ID and vehicle number. Cancellation of reported invoice is allowed by seller within specified time and amendment is also possible only on GST portal not through IRP.

Some categories of persons are exempted from this concept of E- invoicing-

1. SEZ/Government department/local authority
2. Bank/NBFC/insurer
3. Goods transport agency
4. Transportation of passengers
5. Multiplex Screens

Dynamic QR code

The government by notification has specified that the tax invoice shall have quick response code which is applicable to all registered persons whose aggregate turnover is more than 500 crores in financial year and it is issued by supplier to an unregistered person. (i.e. B2C supplies). Benefit of QR code is that recipient can scan and pay in one go with this facility.

Non applicability - QR code is not applicable in case of -

1. Bank/NBFC/Insurer
2. Goods transport agency/Transportation of passenger
3. Multiplex Screen
4. OIDAR services
5. In case of export

Deemed QR code - When supplier provides QR code, but customer opts to make payment without using QR code or supplier makes available electronic mode of payment, then it will be treated as QR code itself.

Related Sections/Notifications/Circulars