Invoice is an important document and it has gained all the more importance in GST regime. Tax invoice and delivery challan are very important documents in the administration of GST. Every registered person shall issue a tax invoice at the time of supply of goods or services.
Who shall issue a Tax invoice and when?
A tax Invoice shall be issued by a registered person before or at the time of:
- Removal of goods for supply to the recipient/purchaser
- Delivery of goods making available thereof to the recipient
A tax Invoice shall be issued within thirty days from the date of supply of the service
However, Central/state government may on the recommendation of GST council permit a category of supplies of goods and services or sector to issue an invoice within such time as prescribed. This relaxation can be given for smaller items or specific sectors such as a bank on such transactions. Below is the summary in simple form:
Particulars of a Tax Invoice
GST act has not prescribed any particular format for issuing a tax Invoice but has prescribed the particulars of a tax invoice which are necessary to be quoted in a valid tax invoice. A tax invoice as referred in section 31 of CGST Act and subject to rule 54 shall contain the following particulars:
- name, address and GSTIN of the supplier;
- a consecutive invoice serial number not exceeding sixteen characters, unique for a financial year.
- date of its issue;
- Customer name, address and GSTIN or UIN, if registered, and in case of unregistered if the value of supply is 50 thousand of more
- Place of supply
- HSN code for goods or services;
- Description, value, Unit and Quantity code of the supply item
- The total value of supply of goods or services or both;
- Taxable value and discount
- Rate and amount of taxes i.e. CGST/ SGST/ IGST
- whether the tax is payable on reverse charge basis; and
- signature or digital signature of the supplier
HSN code are 8 digits identification number allotted to each item of supply and is mandatory to quote on the invoice. However, the GST council may waive off or specify the no of digits of HSN or accounting codes that need to be mentioned on the invoice in particular class of supply.
It has also been provided that in case of Export or supply of goods to an SEZ the invoice should endorse “SUPPLY MEANT FOR EXPORT ON PAYMENT OF INTEGRATED TAX” or “SUPPLY
MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”, as the case may be on the face of invoice. Such Invoice shall also contains details like:
- name and address of the recipient;
- address of delivery; and
- name of the country of destination:
Manner of Issuing Invoice:
Section 31 also provides for the manner in which the Invoices should be generated. In case of supply of goods and services invoices should be generated in triplicate and duplicate respectively. The graph below will show the use of different invoice copies
Bill of Supply
GST act also provides for the issuance of “bill of supply” in some cases. A bill of supply is a document similar to a GST invoice except for the fact that bill of supply does not contain any tax amount as the seller is not supposed to charge any GST from the customer. In the following cases a bill of supply will be issued:
- Registered person is selling exempted goods/services,
- Registered person has opted for composition scheme
It has been further provided that any tax invoice or any other similar document issued under any other Act for the time being in force in respect of any non-taxable supply shall be treated as a bill of supply. Also as per the notification No 45/2017- Central tax dated 13th Oct 2017 a single “invoice-cum-bill of supply” can be issued by a registered person supplying taxable as well as exempted goods/ services to an unregistered person.
FAQ on Invoices:
- Can a Supplier issue an aggregate invoice?
Ans: If in case the supplier is selling goods or services of value less than 200 to unregistered persons. He can issue an aggregate invoice at the end of the day.
- Can the invoice raised be revised?
Ans: Yes a supplier can issue a revised invoice prior to deposition of GST amount and filing the return.
- Is it mandatory to issue invoices in serial no?
Ans: Yes, Invoices are to be strictly issued as serially numbered. Format or number pattern can be changed only after giving a written intimation to proper GST officer along with reason thereof.
- Does invoice require only manual signatures?
Ans: No, Invoices can be signed digitally as well by using the digital signature certificate.
Hope the information will assist you in your Business & Professional Endeavors. In case of any query/ information, please do not hesitate to write back to us.