The document discusses key concepts related to GST including: - GST is charged on value addition at each stage of supply from the supplier to the consumer. - There are different invoice requirements for business to business (B2B), business to consumer small (B2CS), business to consumer large (B2CL) transactions. - For B2B, details of all invoices must be uploaded. For B2CS, consolidated details are sufficient. For B2CL over Rs.250,000, individual invoices must be uploaded. - Section 31 of the CGST Act and Rule 46 specify the details that must be included on tax invoices.

1. 2021
GST Invoice
(Indirect Tax)
Classroom
Deliberations
CA Dr Prithvi Ranjan Parhi
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2. Concept of GST on Value Addition
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3. Tax on
Value Addition
Supplier
Input
Base
Price
Input
GST
Value
Added
Sales
base
Price
Output
GST
Tax
Credit
GST
Payable
GST on
Value
Addition
Manufacturer 100 18 50 150 27 18 9 9
Wholeseller 150 27 100 250 45 27 18 18
Retailseller 250 45 50 300 54 45 9 9
Consumer 300 54
Rate of GST 18%
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6. Concept of B2B & B2C
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7. (66) “invoice” or “tax invoice”
(66) “invoice” or “tax invoice” means the tax invoice
referred to in section 31;
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8. Sec 31-CGST Act
• (1) A registered person supplying taxable goods shall,
before or at the time of,—
• (a) removal of goods for supply to the recipient, where
the supply involves movement of goods; or
• (b) delivery of goods or making available thereof to the
recipient, in any other case, issue a tax invoice showing
the description, quantity and value of goods, the tax
charged thereon and such other particulars as may be
prescribed:
– Provided that the Government may, on the
recommendations of the Council, by notification, specify the
categories of goods or supplies in respect of which a tax
invoice shall be issued, within such time and in such manner
as may be prescribed.
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Before
or at the
time
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9. Sec 31-CGST Act : Tax Invoice
• (2) A registered person supplying taxable services
shall, before or after the provision of service but
within a prescribed period, issue a tax invoice,
showing the description, value, tax charged
thereon and such other particulars as may be
prescribed:
• Provided that the Government may, on the
recommendations of the Council, by notification
and subject to such conditions as may be
mentioned therein, specify the categories of
services in respect of which––
– (a) any other document issued in relation to the supply
shall be deemed to be a tax invoice; or
– (b) tax invoice may not be issued.
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Before
or
after
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Invoices
B2B Invoices B2C Invoices
B2C Small Invoices B2C Large Invoices
Intra State Supply or
Interstate Supply up
to Rs.2,50,000/-
Interstate Supply
> Rs.2,50,000/-
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11. B2B Invoices
• B2B means business to business transaction.
• In B2B transaction, the customer is also a registered
person and is eligible to take Input Tax Credit (ITC).
• For B2B supplies, invoice wise details of both intra-
state and inter-state supplies should be uploaded in
GSTR-1 Return.
• Scanned Copies of invoices are not required to be
uploaded in GSTR 1.
• Only certain prescribed information needs to be
uploaded i.e., GSTIN of Customer, Invoice No,
Invoice date, Taxable value, rate of tax, amount of
tax and invoice Value.
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12. B2C Small Invoices
• B2C means Business to Consumer transaction.
• This shall be further classified as Business to Consumer [Small]
(B2CS) and Business to Consumer [Large] (B2CL)
• In B2CS transactions, the consumer is an unregistered
person and is not eligible to take ITC.
• For B2CS transactions, consolidated details of
– intra-state sales for each tax rate, and
– inter-state sales with invoice value up to Rs. 2,50,000/- for each rate
of tax
• needs to be uploaded in GSTR-1 Return.
• State Wise Summary for each rate of tax should be reported in
GSTR 1.
• The details to be reported includes State, Taxable Value, rate of
tax, amount of tax.
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13. B2C Large Invoices
• B2CL means Business to Consumer transaction where the
transaction is inter state and invoice value is more than
Rs.2,50,000.
• B2CL transactions, the consumer is an unregistered person
and is not eligible to take ITC.
• For B2CL transactions, invoice wise details of inter-state
supplies with invoice value exceeding Rs 2,50,000 needs to
be uploaded into GSTR-1 Return.
• Scanned Copies of invoices are not required to be
uploaded in GSTR 1.
• Only certain prescribed information needs to be uploaded
i.e., Place of Supply, Invoice No, Invoice date, Taxable
value, rate of tax, amount of tax and invoice Value to be
declared.
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14. Rule 46. Tax invoice.
• Subject to rule 54, a tax invoice referred to in section 31 shall
be issued by the registered person containing the following
particulars, namely,-
• (a) name, address and Goods and Services Tax Identification
Number of the supplier;
• (b) a consecutive serial number not exceeding sixteen
characters, in one or multiple series, containing alphabets or
numerals or special characters hyphen or dash and slash
symbolized as “-” and “/” respectively, and any combination
thereof, unique for a financial year;
• (c) date of its issue;
• (d) name, address and Goods and Services Tax Identification
Number or Unique Identity Number, if registered, of the
recipient;
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15. Rule 46. Tax invoice.
• (e) name and address of the recipient and the address of delivery, along
with the name of the State and its code, if such recipient is un-registered
and where the value of the taxable supply is fifty thousand rupees or
more;
• (f) name and address of the recipient and the address of delivery, along
with the name of the State and its code, if such recipient is un-registered
and where the value of the taxable supply is less than fifty thousand
rupees and the recipient requests that such details be recorded in the tax
invoice;
• (g) Harmonised System of Nomenclature code for goods or services;
• (h) description of goods or services;
• (i) quantity in case of goods and unit or Unique Quantity Code thereof;
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16. Rule 46. Tax invoice.
• (j) total value of supply of goods or services or both;
• (k) taxable value of the supply of goods or services or
both taking into account discount or abatement, if any;
• (l) rate of tax (central tax, State tax, integrated tax,
Union territory tax or cess);
• (m) amount of tax charged in respect of taxable goods
or services (central tax, State tax, integrated tax, Union
territory tax or cess);
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17. Rule 46. Tax invoice.
• (n) place of supply along with the name of the State,
in the case of a supply in the course of inter-State
trade or commerce;
• (o) address of delivery where the same is different
from the place of supply;
• (p) whether the tax is payable on reverse charge
basis; and
• (q) signature or digital signature of the supplier or
his authorised representative:
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19. • Provided that the Board may, on the recommendations of the Council, by
notification, specify
• (i) the number of digits of Harmonised System of Nomenclature code for
goods or services that a class of registered persons shall be required to
mention, for such period as may be specified in the said notification; and
• (ii) the class of registered persons that would not be required to mention
the Harmonised System of Nomenclature code for goods or services, for
such period as may be specified in the said notification:
• Provided further that where an invoice is required to be issued under
clause (f) of sub-section (3) of section 31, a registered person may issue a
consolidated invoice at the end of a month for supplies covered under
sub-section (4) of section 9, the aggregate value of such supplies exceeds
rupees five thousand in a day from any or all the suppliers:
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20. Thank you
prithvi.baps@gmail.com
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