Unit 2:GST PROCEDURES

Topic: Tax Invoice

 LEARNING OUTCOMES

Able to understand the concept of Tax Invoice. ( K2 ,PO1 & PO4)

 Tax Invoice
https://eformz.in/online-invoice-generator/online-gst-invoice.html

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 https://economictimes.indiatimes.com/news/economy/policy/gst-returns-not-filed-the-taxman-can-freeze-your-bank-
account/articleshow/72988396.cms

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Introduction
An invoice is a commercial instrument issued by a supplier of goods/services to a recipient. It identifies both the parties

involved, and lists as well as describes the goods/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 supply of goods).

Invoice or tax invoice means the tax invoice referred to in Section 31 of CGST Act. Under the GST regime, issuance of an

invoice or a bill of supply for every supply of goods and services is mandatory because tax invoice is an important evidence of

supply of goods or services.

Its is an essential document for the recipient to avail Input Tax Credit(ITC).

A registered person cannot avail ITC unless he is in possession of a tax invoice or a debit note.
 Issue of Invoice
GST invoice is issued by:
• A registered person supplying goods or services shall, before or at the time of removal of goods or
delivery or making available thereof to the recipient
•Any registered person buying goods or services from an unregistered person.
•The type of invoice to be issued depends upon the category of registered person making the
supply.
•There is no format for the tax invoice, there are certain mandatory prescribed fields, can be issued
manually or electronically, electronic invoices are not mandatory.
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Source: Ruchi Kansil, Goods and Services Tax ,Sun India Publication, P. 4.6
 Importance of Tax Invoice under GST

• Under GST, a tax invoice is an essential document for the recipient to avail Input Tax
Credit (ITC).
• A registered person cannot avail Input Tax Credit unless he is in possession of a tax
invoice or a debit note.
• GST is chargeable at the time of supply. Invoice is an important indicator of the time
of supply

BBA 309
 When should a tax invoice or a bill of supply be
issued by a registered person

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 Time of Issue of Invoice
• In case of supply of goods-before or at the time of:
-removal of goods
-delivery or
-making available thereof to the recipient.
Example: RK(Delhi) supplies goods to AB(Haryana).The goods were removed from its factory in
Delhi on November 3,2018.RK(Delhi) needs to issue an invoice to AB(Haryana) on or before
November 3,2018.

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Source: Ruchi Kansil, Goods and Services Tax ,Sun India Publication, P. 4.6
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 Time of Issue of Invoice
• In case of continuous supply of goods-where successive statements of accounts are issued or
successive payments are received, before or at the time of each successive statements of
accounts are issued or each successive payments are received.
•In case of goods sent on approval-within 6 months from date of removal of goods or date when
recipient intimates acceptance of goods.
•In case of supply of taxable services-before or after the provision of services, but within the
specified period. The specified period is 45 days in case of an insurer or banking company or
financial institution ,including a NBFC and 30 days from the date of supply of rest of the services.
•In case of an insurer or a banking company or a financial institution-before or at the time when
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such supplier records the same in his books of accounts or before the expiry of the quarter during
which the supply is made.

Source: Ruchi Kansil, Goods and Services Tax ,Sun India Publication, P. 4.6
 Time of Issue of Invoice
•In case of cessation of service before completion of supply-at the time when the supply ceases to
the extent of the supply made before such cessation.
• R a registered person send goods to G on 10/6/2019 on approval or return basis. G gives
approval on 20/8/2019. Issue of invoice must be by ……..?

• If acceptance is on 20/1/2020 , then …….?

• On 1/6/2019 , R agrees to supply “ Commercial Training and Coaching services ” to G on

•daily
. basis for a period of three months. However , after 45 days , due to some reason , the
aforesaid services could not be supplied
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 Mandatory Fields for Tax
Invoice

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Source: Ruchi Kansil, Goods and Services Tax ,Sun India Publication, P. 4.8
 Mandatory Fields for Tax Invoice

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Source: Ruchi Kansil, Goods and Services Tax ,Sun India Publication, P. 4.9
 Other Types of Tax Invoice

• Consolidated Tax Invoice: A registered taxpayer can issue a consolidated tax invoice at the end of
the day if the transaction value is less than or equal to Rs 200 only when :
the recipient does not require tax invoice
And
recipient is a non-registered taxpayer

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Source: Ruchi Kansil, Goods and Services Tax ,Sun India Publication, P. 4.9
 Revised Invoice

• A registered person may, within one month from the date of issuance of certificate of
registration and in such manner as prescribed in the Invoice Rules, 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.
• This provision is necessary, as a person who becomes liable for registration has to apply for
registration within 30 days of becoming liable for registration. When such an application is
made within the time period and registration is granted, the effective date of registration is
the date on which the person became liable for registration. Thus there would be a time lag
between the date of grant of certificate of registration and the effective date of registration.
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 Questions
• R started a business on 1/6/2019. His turnover exceeds 40,00,000 on 15/8/19 and he
applies for registration on 25/8/2019. The certificate of registration is granted to him
on 5/9/2019.

• Ashish Ltd commences business on 1st April , 2018. The turnover exceeds the
threshold limit on 3rd September , 2018 . He applies for registration on 29th sept and
certificate is granted on Oct 5 ,2019. Determine the time period for which Revised
Invoice can be issued ?

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 Bill of Supply
A registered person shall issue bill of supply instead of Tax invoice
• in case of supply of exempted goods or services or both
• or
• supply by a composition dealer
 Receipt Voucher and Refund Voucher
A registered person shall issue a receipt voucher on receipt of advance payments.

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 Invoice
• Invoice is issued by registered person i.e. recipient of goods or services who
is liable to pay tax on reverse charge basis.
KEY TAKEAWAYS
• Under the GST regime, issuance of an invoice or a bill of supply

for every supply of goods and services is mandatory because tax

invoice is an important evidence of supply of goods or services.

• Its is an essential document for the recipient to avail Input Tax

Credit(ITC).

• A registered person cannot avail ITC unless he is in possession of

a tax invoice
 THANK
YOU!
Source: Ruchi Kansil, Goods and Services Tax ,Sun India Publication, P. 4.2