Under GST invoicing rules and formats have been notified covering details such as supplier’s name, shipping and billing address, HSN Code, place of supply, rate. In this article we will be covering all aspects of invoicing under GST.
Time limit to Issue Invoices, Bill of Supply, Debit Notes, Credit Notes etc under GST
(a) Where supply involves the movement of goods:
On or before the removal of goods for supply to the buyer from the location of supplier.
For eg.Dealer A in Delhi is dealing in TV sets. He has to make delivery of 5 TVs to Dealer B in Mumbai. Here supply involves movement of goods. In such case the invoice will be issued on or before the date of dispatch of consignment.
(b) Where supply does not involve movement of goods:
On or before date of delivery of goods to the recipient
For eg. ABC Ltd purchases an escalator, for its office building. The supplier agrees to assemble and install it at office premises. Here, since the supply does not require movement of the generator set, the invoice must be issued at the time when the escalator is made available to ABC Ltd.
B. In case of continuous supply of goods
Where successive statements of accounts or successive payments are involved, the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such payment is received.
Time limit for issue of credit note and debit note
- On or before the thirtieth day of September following the end of the financial year in which such supply was made, or
- The date of filing of the relevant annual return for the financial year,
whichever is earlier.
It may be noted that annual return is required to be filed under section 30(2) on or before 31stDecember of the financial year following the relevant financial year. In cases where such annual return is filed after 30th September, the time limit for issuing credit/debit note will be 30th September only.
According to proviso to section 24(1), no credit note shall be issued by the taxable person if the incidence of tax and interest on such supply has been passed by supplier to recipient.
Revise Already Issued Invoices under pre-GST regime
Revised tax invoices can be issued by a registered taxable person within one month from issuance of certificate of registration i.e. GST Registration. It will be issued against the invoice already issued during the period starting from the effective date of registration till the date of issuance of certificate of registration to him
What is Bill of Supply?
Tax invoice is generally issued to charge the tax and pass on the credit. In GST there are some instances where the supplier is not allowed to charge any tax and hence a Tax invoice can’t be issued instead another document called Bill of Supply is issued.
How to raise aggregate invoices?
Where the value of invoice is less than Rs 200 and the recipient is an unregistered, registered taxpayer, he or she can issue an aggregate invoice for such multiple invoices on a daily basis.
For example, you may have issued 3 invoices in a day of Rs.80, Rs90 and Rs120. In such a case you can issue a single invoice, totaling to Rs290, to be called an aggregate invoice.
When is debit note issued?
Debit note is to be issued by supplier:
- Original tax invoice has been issued and taxable value in the invoice exceeds actual taxable value.
- Original tax invoice has been issued and tax charged in the invoice exceeds actual tax to be paid.
When is credit note issued?
Credit note is to be issued by supplier:
- Original tax invoice has been issued and taxable value in the invoice exceeds actual taxable value.
- Original tax invoice has been issued and tax charged in the invoice exceeds actual tax to be paid.
- Recipient refunds the goods to the supplier
- Services are found to be deficient
What are the specific mandatory fields in an GST compliant invoice?
To issue and receive a GST compliant invoice is a prerequisite to claim ITC. If a taxpayer does not issue such invoice his customer loses ITC claim and the taxpayer loses its customers. Here we mention the mandatory fields in an invoice:
- Invoice number and date
- Customer name
- Shipping and billing address
- Customer and taxpayer’s GSTIN
- Place of supply
- HSN code
- Taxable value and discounts
- Rate and amount of taxes i.e. CGST/ SGST/ IGST
- Item details i.e. description, unit price, quantity
What are the various types of invoices or supporting documents?
All different types of GST compliant invoices such as:
- sales invoices
- purchase invoices
- bill of supply
- credit notes
- debit notes
- advance receipts
- refund vouchers
- delivery challans (for supply on approval, supply of liquid gas, job work and other).
Manner of issuing invoices
How to issue an invoice under reverse charge?
Here, you not issue an invoice different from usual sales or purchase invoices. The only additional requirement is that you need to mention on the invoice that tax is paid on reverse charge.
Is it mandatory to maintain invoice serial number?
Yes, invoice serial number must be maintained strictly.
For example, if invoice is being issued with serial number as INV001, the same format must be maintained. You may change the format by providing a written intimating the GST department officer along with reasons for the same
What all details are required to be mentioned in GSTR-1 for documents issued?
For the following nature of documents issued number of documents prepared, cancelled and net issued along with serial number of each must be mentioned:
- Invoices for outward supply
- Invoices for inward supply from unregistered person
- Revised Invoice
- Debit Note
- Credit Note
- Receipt voucher
- Payment Voucher
- Refund voucher
- Delivery Challan for job work
- Delivery Challan for supply on approval
- Delivery Challan in case of liquid gas
- Delivery Challan in cases other than by way