Under GST a tax invoice or bill of supply to be issued before or on the occurrence of certain event or within a prescribed time. Therefore, an invoice is required for every form of supply such as transfer, barter, exchange, license, rental, lease or disposal.
What is Tax Invoice:
Tax invoice is generally issued to charge the tax and pass on the credit to purchaser.
In GST there are some instances when Supplier is not allowed to collect tax. Supplier issued Bill of Supply when he supply exempted goods or services or when he supply is under composition scheme. Definition of exempt supply covers non taxable supplies. We can say bill of supply will be issued even in case of non – taxable supplies.
What is Supplementary Invoice:
Section 178 covers issuance of supplementary invoice. Where price of any goods and/ or services is revised upwards or downwards in pursuance of contract entered into prior to the appointed day then supplementary invoice/ debit note/ credit note shall be issued by the supplier with in 30 days form the date of price revision. Further more such document shall be deemed to be issued in respect of an outward supply and accordingly GST will be applicable. Further more , as per explanation to section 28, debit note shall include supplementary invoice.
Invoicing under Reverse Charge:
In case of reverse charge, where supply is received from registered supplier, Although, there is no requirement to issue invoice by the recipient but supplier shall mention in the invoice that reverse charge is applicable and it shall be mentioned by the supplier separately.
Debit Notes and Credit Notes:
All revision, rectification, modifications, settlement of taxable value or taxed charged will be carried out through debit note and credits. Further more, credit note shall be issued before September month of succeeding year in which supply was made or before the date of filing of annual return, which ever is earlier.
No time limit for issuance of debit note is specified in section 31. Since credit is not eligible after specified time, debit note shall be issued approximately within the time frame as credit note.
Invoice Reference Number:
Under a new concept has been introduced, wherein duplicate copy of tax invoice is not required to carried on by the transporter while transporting of goods. Supplier Can obtain Invoice Reference Number from the common portal and provide the same to the transporter.
Mandatory fields in an GST for Invoice:
When Invoice Shall Be Raised:
Tax invoice shall be issued by the registered taxable person within the time in the time in following manner:
In case of Goods:
a. One Time Supply:
Where movement involve: Before or at the time of removal of goods.
Other cased: Earlier of delivery or making available of goods.
b. Continuous Supply:
When successive statements of accounts or successive payment are involved in such case invoice shall be issued before each settlement or receipt of each payment.
c. Reverse Charge Liability: On the date of receipt of goods from unregistered dealer or from taxable person.
d. Other Cases: For goods sent on sale on approval basis, invoice shall be issued before or at the time is known that supply has taken place or within 6 months form the date of removal of goods.
In case of Services:
a. One time Supply: Before such supply. If issued after supply, then within time prescribed under rules.
b. Continuous Supply :
1. If due date of payment is ascertainable from contract- before or after (within prescribed time) the payment is liable to be made by recipient, irrespective of receipt of payment.
2. If due date of payment is not ascertainable from contract- before or after (within prescribed time) receipt of each payment.
3. Milestone Payments- before or after (within prescribed time) the time of completion of each milestone.
c. Reverse Charge Liability: On date of receipt of services from a person who is not required to register under the GST Act.
Invoice format for Multiple Tax Items:
Invoice format for Single Rate Products:
Click Here to Download Invoice Format in Ms Word