Invoicing Procedure Under GST
With the preparation to migrate existing taxpayers under GST regime is going on, the next step which is really worth for business man to know is how and when to issue a tax invoice. Here, is an attempt made to explain the provision related to tax invoice.
Provisions related to tax invoice is provided in sec 23 of original GST model and sec 28 of revised model. Here we are examining the provisions given in revised GST model.
|Name of document||who will issue||when to issue||Power with central government / state government and others remarks|
|Tax Invoice (in case supply is made in goods)||Registered taxable person supplying taxable goods||Before or at the time of remove of goods / delivery of goods||Specify the categories of goods and/or supplies in respect of which the tax invoice shall be issued within such time as may be prescribed in the notification.|
|Tax Invoice (in case supply of services)||Registered taxable person supplying taxable services||Before or after the provision of service but within a period prescribed in this behalf (i.e. 30 days)||Specify the categories of services in respect of which any other document may issued.|
|Revised invoice||A registered taxable person (whether supplying goods or services)||Within one month from the date of issuance of certificate of registration||Revised invoice shall be issued against the invoice already issued during the period starting from the effective date of registration till the date of issuance certificate of registration.“tax invoice” shall be deemed to include a document issued by an Input Service Distributor, and shall also include any revised invoice. Hence, rules related to Tax invoice are also applicable to “Prescribed documents” and “Revised Invoice”.|
|Bill of supply||Registered taxable person||Supplying exempted goods and/or services or paying tax under composition scheme||May not issue bill of supply in case value of supply is less than Rs 100.|
|Receipt voucher or any other document||Registered taxable person||On receipt of advance payment with respect to any supply of goods or services|
|Invoice||Registered taxable person liable to pay tax under reverse charge mechanism||On the date of receipt of goods or services from a person who is not registered under the Act|
|Prescribed document||Input Service Distributor||At the time of distributing credit to each of the recipients||“tax invoice” shall be deemed to include a document issued by an Input Service Distributor, and shall also include any revised invoice. Hence, rules related to Tax invoice are also applicable to “Prescribed documents” and “Revised Invoice”.|
|Credit note||Where tax invoice has already been issued||1. Taxable value and/or tax charged in tax invoice is found to exceed2. Goods supplied are returned
3. Services supplied are in deficit
|No reduction in output tax liability of the supplier shall be permitted if the incidence of tax and interest on such supply has been passed on to any other person.|
|Debit note||Where tax invoice has already been issued||Taxable value and/or tax charged in tax invoice is found to be less||‘Debit Note’ shall include a supplementary invoice.|
|Supplementary invoice.||Registered taxable person||Contract is entered prior to appointed date and price of goods and / or services is revised upward or downward||‘Debit Note’ shall include a supplementary invoice.|
Under GST regime normally a business shall issue a tax invoice, receipt voucher, revised invoice, credit note / debit note. Other documents shall be issued under only special businesses under special circumstances.