GST Invoice Guide, Invoicing under Goods and Service Tax with Formats

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GST Invoice Guide, Invoicing under Goods and Service Tax with Formats

GST Invoice Guide, Invoicing under Goods and Service Tax with Formats. Invoice is a document which records the terms of an underlying arrangement between parties. An invoice does not bring into existence an agreement but merely records the terms of a preexisting agreement. GST requires that an invoice – tax invoice or bill of supply – to be issued on the occurrence of certain event or within a prescribed time. Therefore, an invoice, among others is required to be issued for every other form of supply such as sale, transfer, barter, exchange, license, rental, lease or disposal.

Invoicing under Goods and Service Tax

Issue of tax invoice in case of supply of taxable goods by a registered person

(a) Where supply involves movement of goods

Tax invoice shall be issued before or at the time of removal of goods for supply to the recipient

(b)Where supply involves other than movement of goods

Tax invoice shall be issued before or at the time of delivery of goods or making available to the recipient.

Issue of tax invoice in case of supply of taxable service by a registered person

Tax invoice shall be issued within a period of thirty days from the date of supply of service.

However, where supply of service ceases under a contract before completion of the supply, the invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of supply made before cessation.

Where supplier of service is an insurer, a banking company, a financial institution including a non banking financial company the tax invoice (or any other document in lieu thereof) shall be issued within forty five days from the date of supply of service.

Where an insurer or a banking company or a financial institution, including a nonbanking financial company, or a telecom operator, or any other class of supplier of services as may be notified by the Government on the recommendations of the GST Council, making taxable supplies of services between distinct persons (i.e. more than one registered establishments under a single PAN), may issue the invoice before or at the time such supplier records the same in his books of account or before the expiry of the quarter during which the supply was made.

GST Registration Procedure for Existing Kerala VAT Dealers

Issue of bill of supply instead of tax invoice

Following persons shall issue Bill of supply instead of tax invoice.

  • (a) A registered person under composition levy.
  • (b) A registered person supplying exempted goods or service or both.

When tax invoice or bill of supply may not be issued by a registered supplier of goods or service

If following conditions are fulfilled a registered person may not issue tax invoice or bill of supply:

  • (a) Value of goods or service or both is less than two hundred rupees against a single transaction,
  • (b) Recipient is an unregistered person.

If above two conditions are fulfilled registered person may issue a consolidated tax invoice (instead of separate invoices) for such supplies at the close of each day in respect of all such supplies.

Issue of receipt voucher and refund voucher against advance payment received.

A registered person shall, on receipt of advance payment with respect to any supply of goods or services or both, issue a receipt voucher or any other document, containing such particulars as may be prescribed, evidencing receipt of such payment.

Where subsequently no supply of goods or service or both is made against such advance and therefore, no tax invoice is issued in pursuance thereof, the said registered person may issue to the person who had made the advance payment, a refund voucher against such payment.

Issue of an invoice and payment voucher by recipient of goods or service or both.

A registered person who is liable to pay tax under reverse charge on account of received of goods or service or both from unregistered person or such categories of goods or service, as may be notified by the Government, from a registered person, shall issue an invoice on the date of received of such goods or service or both. Such registered person shall issue a payment voucher at the time of making payment to such supplier.

Invoicing in case of continuous supply of goods or service

(a) In case of continuous supply of goods

Where successive statements of accounts or successive payments are involved, the tax 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.

(b) In case of continuous supply of service

  • (i) Where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment
  • (ii) Where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment.
  • (iii) Where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that event.

GST Bill of Supply

Goods are sent on approval or return basis

Where goods are sent or taken on approval for sale or return, the invoice shall be issued on acceptance of goods by the recipient or six months from the date on which such goods were sent, whichever is earlier.

Revised Invoice

A registered person may, within one month from the date of issuance of certificate of registration and in such manner as may be prescribed, issue a revised invoice against the invoice already issued during the period beginning with the effective date of registration till the date of issuance of certificate of registration to him.

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