What is Tax invoice? Explain along with its contents, timing and manner of issuance.
What is Tax invoice? Explain along with its contents, timing and manner of issuance.
Ans
Tax Invoice
Under the GST regime, an “Invoice” or “Tax Invoice” means the tax invoice referred to in section 31 of the CGST Act, 2017. This section mandates the issuance of an invoice or a bill of supply for every supply of goods or services. It is not necessary that only a person supplying goods or services needs to issue an invoice. The GST law mandates that any registered person buying goods or services from an unregistered person also needs to issue a payment voucher as well as a tax invoice. The type of invoice to be issued depends upon the category of registered person making the supply.
Contents of Tax Invoice [Sec. 31(1) & (2) Rule 46]
(1) Tax invoice shall be issued by the supplier containing the following details:
(a) Name, address, date of issue and .GSTIN of the supplier,
(b) A consecutive serial number, in one or multiple series,
(c) Name, address and GSTIN of the registered recipient; and the address of delivery, along with the name of the State and its code.
(d) HSN code of goods or Accounting Code of services,
(e) Description, units and quantity of goods, or
(f) Total/taxable value of supply of goods or services or both taking into account discount or abatement, if any,
(g) Rate and amount tax (CGST, SGST, IGST, UGST or cess),
(h) Place of supply along with the name of the State, in case of a supply in the course of inter-State trade or commerce,
(i) Whether the tax is payable on a reverse charge basis, and
(j) Signature or digital signature of the supplier or his authorized representative
Exemptions:
Where the supplier of taxable service is an insurer or a banking company or a financial institution, including a non-banking financial company, the said supplier shall issue a tax invoice or any other document in lieu thereof, by whatever name called, whether or not serially numbered, and whether or not containing the address of the recipient of taxable service, but containing other information as prescribed under Rule 46 of COST Rules.
(2) In case of exports, the invoice shall carry an endorsement “Supply meant for export on payment of igst” or “Supply meant for export under bond or letter of undertaking without payment of igst”. as the case may be. any document issued under composition scheme shall prominently contain the words “Input Tax Credit not Admissible.”
Indication of the amount of the tax on the Tax Invoice
“Amount of tax” shall be prominently indicated in all documents relating to assessment, tax invoice and other like documents. It is mandatory to indicate the taxable value and tax amount included in the invoice for all supplies for consideration. The amount of tax shall form part of the price at which such supply is made. In case of an intra-State supply of goods/services the tax invoice shall mention CGST and $GST. In case of inter-State supply of goods/services, tax invoice shall mention IGST.
Time of Issuance of Tax Invoice
(A) Supply of goods
(1)The tax invoice shall 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.
(2) In case of continuous supply of goods, the invoice shall be issued before or at the time each statement is issued or, each payment is received.
(3)Where the goods (being sent or taken on approval or sale or return) are removed before the supply takes place, the invoice shall be issued before or at the time of supply (or) 6 months from the date of removal, whichever is earlier.
(B) Supply of services
(1) In case of taxable supply of services, the invoice shall be issued before or after the provision of service but within the prescribed period of 30 days from the date of supply of service.
However, where the supplier of service is an insurer or a banking company or a financial institution including a non-banking financial company, the period within which the invoice or any document in lieu thereof is to be issued shall be 45 days from the date of supply of service.
