GST UNDER: Tax invoice and e-way bill
An invoice is a commercial instrument issued by a supplier of goods/services to a recipient. It identifies both parties involved, and lists describe the goods sold/services supplied, quantifies the items sold, shows the date of shipment and mode of transport, prices and discounts if any, and the delivery and payment terms (in case of a supply of goods).
Tax-invoice
Section 31 mandates to issue a Tax-Invoice in case a registered person is making taxable supply and to issue a Bill of Supply in case of exempted supplies or paying tax under the provisions of section 10. issue a tax invoice showing the description, quantity, and value of goods, the tax charged thereon, and such other particulars as may be prescribed.
In the case of supply of goods A registered person supplying taxable goods shall, 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.
In the case of a supply of services, such invoices may be issued within 30 days from the date of provision of such services, subject to some exceptions like banking companies, etc. Rules 46 to 55 specify various mandatory fields to be given in various types of invoices, credit and debit notes, etc. to be issued by a registered person.
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;
a registered person may not issue a tax invoice if the value of the goods or services or both supplied is less than two hundred rupees subject to such conditions and in such manner as may be prescribed;
a registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed. Provided that the registered person may not issue a bill of supply if the value of the goods or services or both supplied is less than two hundred rupees subject to such conditions and in such manner as may be prescribed
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, on receipt of advance payment with respect to any supply of goods or services or both the registered person issues a receipt voucher, but subsequently no supply is made and no tax invoice is issued in pursuance thereof, the said registered person may issue to the person who had made the payment, a refund voucher against such payment.
a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both;a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue a payment voucher at the time of making payment to the supplier.
Where the supply of services ceases before its completion
In a case where the supply of services ceases under a contract before the 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 the supply made before such cessation.
Goods sent on sale or return basis
Where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued before/at the time of supply or 6 months from the date of removal whichever is earlier.
Number of HSN digits required on the tax invoice
E-Invoice
The Notification No. 5/ 2021-CT, dated 8-Mar-21 tumbled the threshold limit for mandatory issuance of e-invoices in case of B2B taxable supplies by a taxpayer whose aggregate turnover is more than Rs. 50 Cr with effect from 01.04.2021, subject to certain exceptions.
E-invoicing is not the generation of invoices by a Government portal. Taxpayers will continue to create their GST invoices on their own Accounting/Billing/ERP Systems as per the e-invoice schema. These invoices will then be reported to ‘Invoice Registration Portal (IRP)’. On such reporting, IRP will generate a unique ‘Invoice Reference Number (IRN)’, digitally sign it and return the e-invoice to the supplier. A GST e-invoice will be valid only with a valid IRN.
Presently, invoices, credit notes and debit notes, when issued by notified persons (to registered persons (B2B) or for the purpose of exports) are covered under e-invoice. Though different documents are covered, for ease of reference and understanding, the system is referred as ‘e-invoicing’.
Exemption from e-invoicing:
Following entities are exempt from the mandatory requirement of e-invoicing:
- Special Economic Zone units
- Insurer or banking company or financial institution including NBFC
- GTA supplying services in relation to transportation of goods by road in a goods carriage
- Supplier of passenger transportation service
- Person supplying services by way of admission to an exhibition of cinematograph films on multiplex screens
