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Tax Invoice Under GST

The document discusses the importance and requirements of tax invoices under the Indian GST law. A tax invoice is mandatory for any supply of goods or services and must be issued by the supplier to the recipient. It allows the recipient to claim input tax credit. Key information that must be included on a tax invoice includes the supplier and recipient names and addresses, tax registration numbers, item descriptions, quantities, prices, tax rates and signatures. Invoices must be issued before or at the time of supply for goods, and before or within 30 days of supply for services.

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123 views

Tax Invoice Under GST

The document discusses the importance and requirements of tax invoices under the Indian GST law. A tax invoice is mandatory for any supply of goods or services and must be issued by the supplier to the recipient. It allows the recipient to claim input tax credit. Key information that must be included on a tax invoice includes the supplier and recipient names and addresses, tax registration numbers, item descriptions, quantities, prices, tax rates and signatures. Invoices must be issued before or at the time of supply for goods, and before or within 30 days of supply for services.

Uploaded by

koushiki mishra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Tax Invoice

Broadly speaking, an invoice is a commercial instrument issued by a seller to a


buyer. It identifies both the trading parties and lists, describes, and quantifies
the items sold, shows the date of shipment and mode of transport, prices and
discounts, if any, and delivery and payment terms.

In terms of Section 31, the most important requirement in the payment process
is issuance of Tax Invoice by the Supplier to the Recipient for his supply of goods
and / or services. Based on Tax Invoice issued by the supplier, the receiver takes
credit. Again, it is on the basis of matching of tax invoices of input supplies and
corresponding output supplies that the taxmen confirm whether credit has been
availed of lawfully.

Thus, Section 31 mandates issuance of invoice or a bill of supply for every supply
of goods or services. It is not necessary that only a person supplying goods or
services need to issue invoice. The GST law mandates that any registered person
buying goods or services from an unregistered person needs to issue a payment
voucher as well as a tax invoice. The type of invoice to be issued depends upon
the category of registered person making the supply.

However, if a registered person is dealing only in exempted supplies, then such a


registered person needs to issue a bill of supply in lieu of invoice.

Why Tax Invoice is Important?


A tax invoice not only evidences supply of goods or services, but is also an
essential document for the recipient to avail Input Tax Credit (ITC).

Mandatory Contents of Invoice

There is no format prescribed for an invoice; however, Invoice Rules make it


mandatory for an invoice to have certain specified information; some illustrative
ones are given below:
a) name, address and GSTIN of the supplier
b) date of its issue
c) name, address and GSTIN or UIN, if registered, of the recipient
d) name and address of the recipient and the address of delivery, along with the
name of state and its code
e) HSN code of goods or accounting code of services
f) description of goods or services
g) total value of supply of goods or services or both
h) rate of tax (central tax, state tax, integrated tax, union territory tax or cess)
i) signature or digital signature of the supplier or his authorized representative

Special Provisions for Services:

(i) 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 have
been prescribed in the Invoice Rules.
The government may, by notification and subject to certain conditions, specify
the categories of services in respect of
a) any other document issued in relation to the supply shall be deemed to be a
tax invoice
b) tax invoice may not be issued

Thus, in case of goods, an invoice has to be issued before or at the time of


supply. In case of services, however, invoice has to be issued before or after
provision of services, but within the specified period of 30 days from the date of
supply of service.

(ii) A registered person may, within one month from the date of issuance of
certificate of registration, issue a revised invoice against the invoice already
issued subject to certain conditions. This ensures uninterrupted availment of ITC.

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