Invoicing under GST

PPT on Invoicing under GST and A tax invoice shall contain

1. Invoicing under GST Trichy Commissionerate

2. Invoice and GST GST requires that a tax invoice or bill of supply to be issued before or on the occurrence of certain event or within a prescribed time. GST allows seamless flow of Input Tax Credits (ITC ). One of the fundamental pillars of GST is checking the Input Tax Credit (ITC) Claims, for which data of all Invoices to be uploaded and matched 2

3. Tax Invoice Every registered taxable person under GST supplying Goods or services is required to issue a tax invoice for all supplies effected (Sec. 31(1)&31(2)) G overnment may notify some other document for certain category of services . E.g. Bus ticket, Bank Voucher etc . 3

4. Bill of Supply A supplier supplying exempted goods or service or a supplier who has opted for composition levy scheme has to issue a Bill of Supply instead of a tax invoice. A bill of supply is not eligible for claiming input tax credits . ( Sec. 31(3)( c)) 4

5. Difference Tax Invoice Bill of Supply Who has to issue? Taxable Supplier who is supplying Taxable goods or Taxable Services Supplier of Exempt Goods or services and Composition Tax payer Can Input Tax claimed? Input Tax Credit(ITC) can be claimed based on Tax Invoice Input Tax Credit(ITC) cannot be claimed based on ‘Bill of Supply 5

6. When Tax Invoice shall be issued Goods Services Supplies involving movement of goods – before or at the time of removal of goods (Sec. 31(1)a) Before or after provision of service but within 30 days from supply of service (Sec. 31(2)) (Rule 2) Delivery of goods/ making available of goods to the recipient, if supply doesn’t involves movement of goods (Sec. 31(1)b) 45 days in case of Insurer, banking company, financial institution including NBFC 6

7. ….for Continuous supply Goods Services If the supply is continuous supply of goods, before or at the i ssuance of successive statements accounts (Sec. 31(4)) In case of continuous supply of services where due date ascertainable , o n or before t he due date of payment (Sec. 31(5)a) In case of continuous supply of services where due date is not ascertainable, on or before the date of payment (Sec. 31(5)b) In a case where the supply of services under a contract ceases before the completion of the supply, invoice issued at the time when the supply ceases (Sec. 31 (6)) 7

8. …… miscellaneous 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 or at the time of supply or 6 months from the date of removal , whichever is earlier. (Sec. 31(7)) In case a person paying tax on reverse charge receives goods or services from an unregistered supplier , the receiver must issue an invoice on the date of receipt of goods or services. ( Sec. 31(3)(f) and Sec. 9(4)) In case a person paying tax on reverse charge receives goods or services from the the government notified specific categories of supply of goods and services , the receiver must issue an invoice on the date of receipt of goods or services ( Sec. 31(3)(f) and Sec 9(3)) 8

9. A tax invoice shall contain Rule 1 ( a) Name, address and GSTIN of the supplier ( b) Consecutive serial number (one or more series) unique for a financial year ( c) Serial number may either contain alphabets or numerals or special characters ( d) Date of issue ( e) Name, address and GSTIN or UIN, if registered, of the recipient ( f) Name and address of recipient and address of delivery (in case of unregistered recipient and value of taxable supply exceeds Rs 50,000 it should also include name of State and its code) ( g ) HSN code or Accounting code for services ( h) Description, quantity, unit, total value of goods or services, rate of tax , amount of tax (CGST, SGST, IGST, UTGST or cess), place of supply (in case of interstate supply – name of the State ) and address of delivery ( if same is different from place of supply ) 9

10. Issued by an exporter Should have the additional information (a) An endorsement “ supply meant for export on payment of IGST ” or “ supply meant for export under bond or letter of undertaking without payment of IGST ”, as the case may be (b ) Name of the country of destination (c) Number and date of application for removal of goods for export 10

11. Exceptions to issuing invoice Where value of goods and services supplied < Rs . 200 (Sec. 31(3)b ) The registered person, in the above situation should issue a consolidated tax invoice for such supplies at the close of each day The recipient is not a registered person The recipient doesn’t require such invoice ( Rule 1 ) 11

12. A Bill of supply contains Rule 4 T he bill of supply contains the particulars of the invoice except rate and amount of tax. T he exceptions to issuing an invoice also applies to the issue of bill of supply. 12

13. Transportation of goods – Delivery challan Rule 8 Issued - - In lieu of invoice at the time of removal of goods for transportation - same shall be declared in FORM (WAY BILL). Purpose ( a) supply of liquid gas ; the quantity at the time of removal not known ( b) transportation of goods for job work ( c) transportation of goods other than by way of supply 13

14. ……Delivery challan Features to be included - (a) It is serially numbered (b) Name, address and GSTIN of the consignor/ GSTIN or UIN of the consignee, if registered (d) HSN code and description of goods, Provisional quantity supplied , if exact not known (f) Taxable value, tax rate and tax amount (g) Place of supply (for interstate movement), (h) Note and Signature 14

15. Manner of issuing Tax Invoice Rule 3 Tax invoice shall be prepared Supply of Goods – In triplicate 1.Original for recipient 2. Duplicate for transporter 3. Triplicate for supplier Supply of Services – In duplicate Original for recipient Duplicate for supplier 15

16. Error in an Invoice Rectification of invoice Revised invoice - Will be issued for correcting clerical errors or typological errors within 30 days date of issuance of certificate of registration ((Sec. 31(3)a) Credit note - Will be issued in case of decrease in taxable value or decrease in tax rate or in case goods are returned (Sec. 34(1)) Debit note/Supplementary Invoices - Will be issued in case of increase in taxable value or increase in tax rate (Sec. 34(3)) 16

17. ... Error in an Invoice Rule 6 “Revised Invoice” indicated prominently Nature of the documents and date of issue Serial no and date of corresponding tax invoice/bill of supply Amount of tax debited/credited to the recipient Other details required to be mention in the invoice 17

18. What is new under GST? Concept of bill of supply Revised invoice for correction Mandatory to quote details of tax charged . Self-invoice on the date of receipt of supply, which is liable to tax under reverse charge, from an unregistered person. Such Invoices to be reported in GSTR-2. Serial numbers and sequence numbers of all the invoices to be reported along with GSTR-1 in each period. A receipt Voucher need to be issued when an advance is received against a Supply. The need to issue receipt voucher arises only when an advance is received with respect to a supply. (Sec. 31(3)d) 18

19. THANK YOU 19