Understand GST Invoice format, Tax Invoice, Bill of Supply, Credit Note, Debit Note, Significance of Supply Under GST, Time Limit for issuing GST Invoice and Invoice under reverse charge By CA Kapil Goel



As per GST rules, a transaction is ‘Supply’ when there is a transfer, exchange, barter, rental, lease, disposal or license of goods or services. Whenever a transaction takes place under GST, an Invoice has to be issued within a prescribed time limit. Hence, every taxpayer registered under the GST shall be required to issue an Invoice for the supply of goods or services.



Under GST regime, invoice should include supplier’s name, GSTIN, shipping and billing address, HSN Code, place of supply, applicable rate and GSTIN of goods or service receiver.

In this article I will cover all aspects of Invoices under GST Network.
 
Tax Invoice

Every Registered Taxable person under GST supplying Goods or Services or Both is required to issue a Tax Invoice for all supplies effected by him. The word “Every registered Taxable person” clearly specifies that issuing Tax Invoice is compulsory under GST law. However, government may notify some other document for certain category of services. Eg. Bus ticket, Bank Voucher etc.,

Bill of Supply

In GST Regime, A new concept of Bill of Supply is Introduced. Previously used, Sales Invoices and Cash Memos has been ended. Now you can only issue two types of Invoices : One is Tax Invoice & the other one is called as Bill of Supply.


Tax invoice is generally used to charge the tax from the receiver and pass on the credit to him. In GST, there are some defined transactions where the supplier of Goods or Services is not allowed to charge any tax and pass on the benefit. And hence a Tax invoice can’t be issued in this case instead another document called Bill of Supply is introduced.

A supplier of Goods or Services supplying exempted goods or services or a supplier who has opted for composition levy scheme under GST Law has to issue a bill of supply instead of a Tax Invoice. A bill of supply is not eligible for claiming input tax credits.
 
Time limit for issuing Invoice:

Under GST Law, it has defined the time limit for issue of GST Invoices, revised invoices, debit notes and credit notes.
Following are the due dates for issuing an invoice to customers/dealers:
  • Supply of Goods in Normal cases- On or before the date of removal / delivery.
  • Supply of Goods in case of Continuous Supply - On or before the date of issue of account ledger / payment.
  • Supply of Services in General cases- within 30 days of supply of services.
  • Supply of Services in case of Banks & NBFCs - within 45 days of supply of services.
Concept of Aggregate invoice:

Under GST, Where the value of single invoice is less than Rs. 200 and the recipient is an unregistered dealer, then, an aggregate invoice for all such multiple invoices can be issued on a daily basis.
 
Debit Note:

A Debit note is issued by supplier to the customer when:
  • Tax invoice has been issued to the customer and taxable value in the invoice is less than actual taxable value to be charged.
  • Tax invoice has been issued and tax charged in the invoice is less than actual tax to be paid to the supplier. 
Credit Note:

Credit note is raised by the supplier when:
  • Tax invoice has been issued but the taxable value in the invoice is more than the actual taxable value.
  • Tax invoice has been issued but tax charged in the invoice exceeds actual tax to be paid to the supplier.
  • There is a return of Goods by the customer to the supplier.
  • Services given are found to be deficient.
An invoice under reverse charge:

In case of Reverse Charge, there is no need to issue a separate invoice other than usual sales or purchase invoices. The only additional requirement in this case is that we need to mention on the invoices the GST rate and Amount that is paid on reverse charge.
 
Specific mandatory fields in a GST Invoice:

Here are the mandatory fields that must be in a GST compliant invoice:

  • Invoice Number
  • Date of Invoice
  • Customer Name
  • Shipping and Billing Address
  • Supplier's GSTIN
  • Customer's GSTIN
  • HSN / SAC Code
  • Taxable Value of Goods or Services and discounts, if any
  • Rate and Amount of Taxes i.e. CGST/ SGST/ IGST
  • Item Details (Unit Price, Quantity etc.)

Author
CA Kapil Goel
Goel & Goel, Chartered Accountants
He can be contacted at contactcakapilgoel@gmail.com
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