GST Tax Invoice

GST Tax Invoice

CMA Sandeep Kumar

Topics

  1. Tax invoice/Issuance of Credit and debit notes
  2. Furnishing details of outward/inward supplies

Section 23: Tax Invoice

A Registered taxable person supplying:-

  • Taxable goods shall issue, at the time of supply, a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed;
  • Taxable services shall issue a tax invoice, within the prescribed time, showing the description, the tax charged thereon and such other particulars as may be prescribed:

Provided that a registered taxable person may issue a revised invoice against the invoice already issued during the period starting from the effective date of registration till the date of issuance of certificate of registration to him:

Provided further that a registered taxable person supplying non-taxable goods and/or services or paying tax under the provisions of section 8 shall issue, instead of a tax invoice, a bill of supply containing such particulars as may be prescribed.

Explanation:-the expression “tax invoice” shall be deemed to include a document issued by an Input Service Distributor under Section17, and shall also include any supplementary or revised invoice issued by the supplier in respect of a supply made earlier.

Section 17: Manner of Distribution of Credit by Input Service Distributor

  • The Input Service Distributor may distribute, in such manner as may be prescribed, the credit of CGST as IGST as IGST, by way of issue of a prescribed document containing, inter alia, the amount of input tax credit being distributed or being reduced thereafter, where the Distributor and the recipient of credit are located in different States.        (CGST ACT)
  • The Input Service Distributor may distribute, in such manner as may be prescribed, the credit of CGST and IGST as CGST, by way of issue of a prescribed document containing, inter alia, the amount of input tax credit being distributed or being reduced thereafter, where the Distributor and the recipient of credit, being a business vertical, are located in the same State. (CGST ACT)

Section 23A: Amount of Tax to be indicated in tax invoice and other documents





Notwithstanding anything contained in this Act or any other law for the time being in force, where any supply is made for a consideration, every person who is liable to pay tax for such supply shall prominently indicate in all documents relating to assessment, tax invoice and other like documents, the amount of tax which will form part of the price at which such supply is made.

Schedule I: Matters to be treated as supply without consideration

  1. Permanent transfer/ disposal of business assets.
  2. Temporary application of business assets to a private or non- business use.
  3. Services put to a private or non-business use.
  4. Assets retained after deregistration.
  5. Supply of goods and/ or services by a taxable person to another taxable or non-taxable person in the course or furtherance of business.

Provided that the supply of goods by a registered taxable person to a job- worker in terms of section 43A shall not be treated as supply of goods.

Section 2(35): Definition of Credit Note

“Credit note” means a document issued by a taxable person as referred to in sub-section (1) of section 24;

Section 2(36): Definition of Debit Note

“Debit note” means a document issued by a taxable person as referred to in sub-section (2) of section 24;

Section 24: Credit and Debit notes




  • Where a tax invoice has been issued for supply of any goods and/ or services and the taxable value and/ or tax charged in that tax invoice is found to exceed the taxable value and/or tax payable in respect of such supply, the taxable person, who has supplied such goods and/ or services, any issue to the recipient a credit note containing such particulars as may be prescribed on or before the thirtieth day of September following the end of the financial year in which such supply was made, or the date of filing of the relevant annual return, whichever is earlier.
  • Provided that no credit note shall be issued by the said person if the incidence of tax and interest on such supply has been passed by him to any other person.
  • Where a tax invoice has been issued for supply of any goods and/ or services and the taxable value and/ or tax charged in that tax invoice is found to be less than the taxable value and/or tax payable in respect of such supply, the taxable person, who has supplied such goods and/ or services, shall issue to the recipient a debit note containing such particulars as may be following the end of the financial year in which such supply was made, or the date of filing of the relevant annual return, whichever is earlier.
  • Any registered taxable person who issues or receives a credit or debit note in relation to a supply of goods and/ or services shall declare the details of such credit or debit note, as the case may be, in the return for the month during which such credit or debit note has been issued or received or in the return for any for any subsequent of financial year in which such supply was made, or the date of filing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in the manner specified in this Act.





Section 2(84) Definition of Return

“Return” means any return prescribed or otherwise required to be furnished by or under this Act or rules made there under;

Section 25: Furnishing Details of Outward Supplies

  • Every registered taxable person, other than an input service distributor and a person paying tax under the provisions of Section 8 or Section 37, shall furnish, electronically, in such form and manner as may be prescribed, the details of outward supplies of goods and/ or services effected, during a tax period on or before the such details shall be communicated to the recipient of the said supplies within the time and in the manner as may be prescribed:
  1. There should not be any requirement to communicate to the recipient the details of supplies separately.

Provided that the Board/ Commissioner may, for valid and sufficient reasons, by notification, extend the time limit for furnishing such details:

Provided further that any extension of time limit by the Board/Commissioner of State Goods and Services Tax/Board:

Explanation:- For the purposes of this section, the expression “ details of outward supplies” shall include details relating to zero-rated supplies, inter-state supplies, return of goods received in relation to/ in pursuance of an inward supply, exports, debit notes, credit notes and supplementary invoices issued during the said tax period.

  1. Q. Non-taxable /exempted supplies?
  • Any registered taxable person, who has furnished the details under sub-section(1) for any tax period and which have remained unmatched under section 29, shall, upon discovery of any error or omission therein, rectify such error or omission in the tax period during which such error or omission is noticed in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period.

Provided that no rectification of error or omission in respect of the details furnished under sub-section (1) shall be allowed after filing of the return under section 27 for the month of September following the end of the financial year to which such details pertain, or filing of the relevant annual return, whichever is earlier.

  1. Limitation period is very less: Substantive right may not be denied for procedural lapse. For invoice dated 31/3/2017, it is only 20th Oct, 2017, i.e. 6 months and 20 days, whereas the revenue can make assessments in the normal course up to 4 years and 9 months and extended period is 6 years and 9 months.

 Section 26: Furnishing Details of Inward supplies     

  • Every registered taxable person, other than an input service distributor and a person paying tax under the provisions of section 8 or section 37, shall verify, validate, modify or, if required, delete the details relating to outward supplies and credit or debit notes communicated under sub-section (1) of section 25 to prepare the details of his inward supplies and credit or debit notes and may include therein, the details of inward supplies and credit or debit notes received by him in respect of such supplies that have not been declared by the supplier under sub-section (1) of section 25.
  • Every registered taxable person shall furnish, electronically, the details of inward supplies of taxable goods and/ or services, including inward supplies of services on which the tax is payable on reverse charge basis under this Act and inward supplies of goods and/ or services taxable under the IGST Act, and credit or debit notes received in respect of such supplies during a tax period on or before the fifteenth day of the month succeeding the tax period in such form and manner as may be prescribed:
  1. Why not goods in RCM (Sec.7 (3))

Provided that the Board/Commissioner may, for valid and sufficient reasons, by notification, extend the time limit for furnishing such details:

Provided further that any extension of time limit by the Board/Commissioner of State Goods and Services Tax shall be deemed to be approved by the Commissioner of State Goods and Services Tax/Board.

  • Any registered taxable person, who has furnished the details under sub section (2) for any tax period and which have remained unmatched under section 29, shall, upon discovery of any error or omission therein, rectify such error or omission in the tax period during which such error or omission is noticed in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period.

Provided that no rectification of error or omission in respect of the details furnished under sub-section (2) shall be allowed after filling of the return under section 27 for the month of September following the end of the financial year to which such details pertain, of filing of the relevant annual return, whichever is earlier.

  1. Q. When the periodicity in the existing laws are quarterly or half yearly basis are not giving rise to any issue neither to the assessee nor the revenue, we recommend that the payment of tax may be received on monthly basis but the periodicity of filing returns may be kept on quarterly basis, This shall also adhere to the slogan given by our Honorable Prime Minister that he is in favor of bringing “Ease of doing business.”