S 2-Invoicing rules under GST

Compiled By –
Surabhi Bansal | Executive | Indirect Tax Vertical
Asija & Associates LLP | Chartered Accountants
gst@asija.in
Chapter VII of CGST Act
Read with Invoice Rules prescribed

Various information pertaining to following points are detailed hereinafter:-
1. Types of Invoices
2. Purpose and content of each Invoice
3. Types of Vouchers
4. Purpose and content of each Voucher
5. Other Documents used as invoice
6. Penalties in case of default
7. Miscellaneous Provisions
Table of Content
gst@asija.inGST Wing | Asija & Associates LLP

Types of Documents issued under GST
Registered Person shall issue
Invoices
1.Tax Invoice (For Outward
Supply)
1.Consolidated Tax Invoice
1.Revised Tax Invoice
Bill of supply
Tax Invoice (For Inward Supply
from Unregistered person &
RCM)
Vouchers
1.Receipt voucher
Refund voucher
Payment voucher
Other Documents
1.Debit Note
Credit Note
Delivery Challan
E-Way Bill

• What is a Tax Invoice?
• When a Tax Invoice is not required to be issued?
• What is the timeline for issuance of Tax Invoice?
• Tax Invoice has to be issued in how may copies?
• Has the law prescribed any format of Tax Invoice?
TAX INVOICE

What is a Tax Invoice?
To be issued by a registered person
Supplying taxable goods / service,
Shall issue an invoice of supply, known as tax invoice
When a Tax Invoice is not required to be issued?
No tax invoice may be issued if the value of supplies is less than Rs. 200/-, provided:-
The recipient is not a registered person and
The recipient does not require tax invoice
However, the supplier shall issued a Consolidated Tax Invoice* for all such
supplies at the close of each day.
* Explained later
TAX INVOICE

TAX INVOICE
What is the timeline for issuance of Tax Invoice?
o In case of Taxable Supply of Goods: 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,
o In case of Taxable Supply of Service: Before or at the time of :-
 But before 30 days from the date of Supply .
 But before 45 days from the date of Supply, in case of Insurer or Banking
Company or financial institution or NBFC
o In case of Continuous Supply of Goods: Before or at the time of
 When each such statement is issued or
 When each payment is received.

o What is the timeline for issuance of Tax Invoice?
o In case of Continuous Supply of Service
 Where the due date of payment is ascertainable from the contract - on or before
the due date of payment;.
 Where the due date of payment is not ascertainable from the contract,- before or
at the time payment is received;
 Where the payment is linked to the completion of an event - on or before the date
of completion of that event.
o Where the goods being sent or taken on approval for sale or return and are removed
before the supply takes place,
 It shall be issued before or at the time of supply or
 Six months from the date of removal, whichever is earlier
TAX INVOICE

 What is the timeline for issuance of Tax Invoice?
o In case where the supply of services ceases under a contract before the
completion of the supply,
 It shall be issued at the time when the supply ceases and
 shall be issued to the extent of the supply made before such cessation.
o In case where goods are being transported for the purpose of supply,
 but tax invoice could not be issued at the time of removal of goods for supply,
 it shall be issued after delivery of goods.
o In case where goods are being transported in a semi knocked down or completely
knocked down condition,
 Complete invoice to be issued before dispatch of the first consignment;
 the original copy of the invoice shall be sent along with the last consignment
TAX INVOICE

Tax Invoice has to be issued in how many copies?
It shall be in Triplicate in case of supply of goods, marked as :-
Original for Recipient
Duplicate for Transporter.
Triplicate for Supplier.
It shall be in Duplicate in case of supply of service, marked as :-
Original for Recipient.
Duplicate for Supplier.
TAX INVOICE

Has the law prescribed any Format of Invoice?
 NO, CGST Act, has not prescribed any specific format of Invoice, but has
prescribed following 16 particulars to be included in it;
1. Name, address and GSTIN of the supplier;
2. A consecutive serial number, containing alphabets or numerals or special
characters, unique for a financial year; (maximum of 16 Characters)
3. Date of its issue;
4. Name, address and GSTIN or UIN, if registered, of the Recipient;
5. Name and address of the recipient and the address of delivery, along with the
name of State and its code, if such recipient is un-registered and value of
taxable supply is 50,000 rupees or more;
6. Harmonised System of Nomenclature Code for Goods or Services. (Notification
No. 10/2017-CT)
TAX INVOICE

Content of Tax Invoice
7. Description of goods or services;
8. Quantity of goods and unit or Unique Quantity Code thereof
9. Total value of supply
10. Taxable value of supply taking into account discount or abatement, if any;
11. Rate of tax (CGST, IGST, UT-GST or cess);
12. Amount of tax charged
13. Place of supply along with the name of State, in case of a supply in the course of inter-
State trade or commerce;
14. Address of delivery where the same is different from the place of supply;
15. Whether the tax is payable on reverse charge basis; and
16. Signature or digital signature of the supplier or his authorized representative
TAX INVOICE

Seria
l No.
Annual Turnover in the preceding
Financial Year
Number of Digits of HSN
Code
1 Upto rupees One Crore Fifty Lakhs NIL
2 More than Rupees One Crore Fifty Lakhs and
upto Rupees Five Crores
2
3 More than Rupees Five Crores 4
TAX INVOICE
 On 28th June, 2017 vide Notification No. 12/2017-CT , Government has notified class
of persons based on their Annual Turnover in the Preceding Financial Year upon
mentioning of HSN Codes in their Invoices. The limit of Annual Turnover are:
 On 28th June, vide Notification No. 10/2017-CT, The provisions relating to Tax Invoice
for Inward Supply issued by a registered person for receipt of supply from an unregistered
supplier has been modified, specifying :
a) A registered person may issue a consolidated invoice at the end of a month for
supplies received from an unregistered person,
b) The aggregate value of such supplies exceeds rupees five thousand in a day from any
or all the suppliers.

What is Revised Tax Invoice?
 Correction in Tax Invoice is NOT Revision of Tax Invoice
 It is to be issued by a registered person against the invoice already issued during the
period between effective date of registration and date of issuance of registration
certificate.
 Revised Tax Invoice cannot be issued for supplies made after the grant of registration
certificate.
Note: -
 Effective date of registration means – Date on which the person was Liable to get registered (if
application made within 30 days) or date of issuance of registration certificate
 Date of issuance of registration certificate means: - The date on which certificate is granted
REVISED TAX INVOICE

1. The word “revised invoice”, indicated
prominently
3. Nature of document
4. A consecutive serial number, containing
alphabets or numerals or special
characters, unique for a financial year;
6. Name, address and GSTIN or UIN, if
registered, of the recipient;
7. Name and address of the recipient and
the address of delivery, along with the
name of State and its code, if such
recipient is un-registered
8. Serial number and date of the
corresponding tax invoice or, as the
case may be, bill of supply
9. Value of taxable supply of goods or
services, rate of tax and the amount of
the tax
10.Signature or digital signature of the
supplier or his authorized
representative
What is the content of Revised Tax Invoice?
REVISED TAX INVOICE

What is Consolidated Tax Invoice?
 If No Tax Invoice has been issued
by the supplier (value of supplies <
Rs. 200/-), supplier shall issue a
Consolidated Tax Invoice for all
such supplies made at the close of
each day.
 All provision relating to Tax
Invoice shall apply to Consolidated
Tax Invoice.
What is a Consolidated Revised Tax
Invoice ?
 A registered person may issue a
consolidated Revised Tax Invoice, in
respect of all taxable supplies made to a
recipient who is not registered under
the Act during such period.
 In case of inter-state supply, where the
value of a supply is less than Rs.
2,50,000.00, consolidated revised Tax
invoice may be issued to all
unregistered recipients separately.
Consolidated Tax Invoice

Tax invoice (for inward supply from unregistered person & RCM)
A registered person who is liable to pay tax :-
 Under reverse charge basis, as specified u/s 9(3) or
 In respect to goods or service received by him from unregistered supplier, as specified
u/s 9(4)
Shall issue a tax invoice with respect to such transaction
Note:
 All rules and contents prescribed for tax invoice for outward supply shall also apply for such invoice of
such inward supplies.
 It is suggested, to use different series for tax invoice issued for outward supply and for inward supply,
for better internal controls and reporting.
TAX INVOICE – Inward Supply

What is a Bill of Supply?
Issued by a registered person
Supplying exempted goods/service or covered by composition scheme (u/s 10),
Shall issue instead of tax invoice, a bill of supply
When a Bill of Supply is not required to be issued?
No tax invoice MAY be issued if the value of supplies is less than Rs. 200/-,
provided:-
 The recipient is not a registered person and
 The recipient does not require tax invoice
 However the supplier shall issued a consolidated Bill of Supply for all such supplies
at the close of each day.
BILL OF SUPPLY

5. HSN/SAC code for goods/services
6. Description of goods or services;
7. Taxable value of supply taking into
account discount or abatement, if
any;
8. Signature or digital signature of the
supplier or his authorized
representative
1. Name, address and GSTIN of the
supplier;
2. A consecutive serial number,
containing alphabets or numerals
or special characters, unique for a
financial year;
4. Name, address and GSTIN or UIN,
if registered, of the recipient;
What is the content of Bill of Supply?
BILL OF SUPPLY

7. Rate of tax
8. Amount of tax charged
9. Place of supply along with the name of
State and its code in case of a supply in the
course of inter-State trade or commerce
10.Whether the tax is payable on reverse
charge basis;
supplier or his authorized representative
What is the content of Receipt Voucher?
2. a consecutive serial number, containing
5. Description of goods or services
6. Amount of advance taken
What is a Receipt Voucher?
 Registered person on receipt of advance payment, with respect to supply of goods or
service, shall issue a receipt voucher
RECEIPT VOUCHER

7. Amount of refund made;
8. Rate of tax
9. Amount of tax paid
10.Whether the tax is payable on reverse
charge basis;
What is the content of Refund Voucher?
registered, of the Recipient;
5. Number and date of receipt voucher
issued
What is Refund voucher?
A registered person shall issue a refund voucher, in case
 He had earlier issued the receipt voucher, for some supply to be made
 but subsequently no supply is made or no tax invoice is issued,
 and the advance is refunded.
REFUND VOUCHER

What is Payment voucher?
A registered person who is liable to pay Tax :-
 Under reverse charge basis, as specified u/s 9(3) or
 In respect to goods or service received by him from unregistered supplier, as specified u/s 9(4)
 Shall issue a Payment Voucher to the supplier
PAYMENT VOUCHER
6. Amount paid;
7. Rate of tax
8. Amount of tax payable
9. Place of supply along with the name of
State and its code in case of a supply in the
course of inter-State trade or commerce
What is the content of Payment Voucher?

What are the time lines for issuance of these vouchers?
• Receipt Voucher - At the time of receipt of advance payment
• Refund Voucher - At the time of refund of advance payment received
• Payment Voucher - At the time of payment made under reverse charge or unregistered
supplier.
What if at the time of receipt of advance payment, rate of tax or nature of supply is
not known?
Where, at the time of receipt of advance payment,
• Rate is not determinable: tax shall be paid at 18%
• Nature of supply is not determinable: shall be treated as inter-state supply
VOUCHERS

DEBIT / CREDIT NOTE
When to issue Debit note?
 A registered person may issue a Debit Note to the recipient,
 to whom Tax Invoice has been issued,
 If the taxable value or tax charged in the tax invoice is less than the actual taxable
value or tax charged.
When to issue Credit note?
 A registered person may issue a Credit Note to the recipient,
 To whom Tax Invoice has been issued, when: -
 Taxable value or tax charged in the tax invoice exceeds the actual taxable
value or tax charged
 Goods supplied are returned or
 Goods or services are found deficient.

2. Nature of document
6. Serial number and date of the
corresponding tax invoice or, as the case
may be, bill of supply
What is the content of Debit / Credit Note?
DEBIT / CREDIT NOTE
7. Name and address of the recipient and
the address of delivery, along with the
name of state and its code, if such
recipient is un-registered
8. Value of taxable supply of goods or
services, rate of tax and the amount of
the tax credited or, as the case may be,
debited to the recipient;
9. Signature or digital signature of the

NOTE:-
 Any Invoice or debit note issued in pursuance of section 74 / 129 / 130 shall
prominently contain the words “Input Tax Credit Not Admissible”
 Any registered person who issues a debit note shall declare the details of such
debit note in the return for the month during which such debit note has been
issued.
 Any registered person who issues a credit note shall declare the details of such
credit note in the return for the month during which such credit note has been
issued
 But not later than September following the end of the financial year in
which such supply was made, or
 The date of furnishing of the relevant annual return, whichever is earlier.
DEBIT / CREDIT NOTE

What is a Delivery Challan?
It is a document which is to be used by the consignor for transportation of goods to
consignee without issue of invoice, for the following purpose:
 supply of liquid gas where the quantity at the time of removal from the place of
business of the supplier is not known,
 transportation of goods for job work,
 transportation of goods for reasons other than by way of supply
What is the content of Delivery Challan?
1. Date and number of the delivery challan
2. Name, address and GSTIN of the consigner, if
registered
3. Name, address and GSTIN or UIN of the
consignee, if registered,
4. HSN code and description of goods
5. Quantity
6. Taxable value
7. Tax rate and tax amount
8. Place of supply, in case of inter-State
movement
9. Signature.
DELIVERY CHALLAN

a)“Original for
b)Consignee”
a)“Duplicate for
Transporter”
a)“Triplicate for
b)Consigner”
Delivery Challan has to be issued in how
many copies?
 It shall be in issued in Triplicate,
 To be marked separately
 Nomenclature to be used as shown
in image
Note: - Details of goods transported on
Delivery Challan shall be declared
in FORM[WAYBILL].
DELIVERY CHALLAN

Where a taxable person:
 Supplies goods or service without issue of invoice or issues an incorrect or false invoice
 Issues any invoice or bill without supply of goods or services
 Issues any invoice or document by using the registration number of another registered
person
He shall be liable to pay a penalty of Rs. 10,000/- or an amount equivalent to the tax
evaded, whichever is higher.
Any person who:
 Fails to issue invoice or fails to account for an invoice in his books of account
 Shall be liable to a penalty which may extend to Rs. 25,000/-
PENALTIES (Section-122 CGST Act)

MISCELLANEOUS PROVISIONS
 An Unregistered person shall not collect any amount by way of Tax.
 In case of export of goods or services, the invoice shall carry an endorsement
“Supply Meant For Export On Payment Of Integrated Tax” or
“Supply Meant For Export Under Bond Or Letter Of Undertaking Without Payment Of
Integrated Tax” (as the case may be)
 It shall contain the following details:
a) name and address of the
b) address of delivery; and recipient;
c) name of the country of destination:
 Some special cases has been defined under Invoice Rule 9, with respect to Input
Service Distributor, Insurer/ Banking company and Goods Transport Agency.

 Are you ready to issue invoice as prescribed under GST?
 Have you designed your Consecutive serial number?
 Have you done KYC of your Dealers / Suppliers?
 Are you ready with the HSN code of Goods or Accounting
code of Services (for both, outward & inward supplies) ?

THANK YOU
FOR ANY QUERIES KINDLY CONTACT OUR GST TEAM :
CA Rahul Mishra
Partner
(rahul.mishra@asija.in)
CA Amber Agrawal
Associate Director
(amber.agrawal@asija.in)
CA Prakhar Gupta
Associate Director
(prakhar.gupta@asija.in)
ASIJA & ASSOCIATES LLP
CHARTERED ACCOUNTANTS
H.O. : 34/5 , GOKHALE MARG, LUCKNOW
PH. NO. : 0522-4004652,2205072
gst@asija.in

DISCLAIMER
This presentation has been prepared to provide a gist of the applicable law pertaining to
GST as issued till date. (09/07/2017)
For detailed insight and for better understanding of the various provision of the law,
the said presentation should be read along with related provision of CGST Act, IGST Act,
SGST Act & related rules.
We shall not be responsible for any decision taken on the basis of the said presentation,
without obtaining our professional guidance or consultation on the matter for which
reliance was made on this presentation.”

S 2-Invoicing rules under GST

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