Time Limit For Issue Of Invoices, Bills of Supply, Debit Notes, Credit Notes Under GST
The new tax regime implemented under the Finance Bill, 2017 has officially brought about the advent of GST (Goods and Services Tax). GST will be implemented from July 1st, 2017 and promises to shake up the current taxation system through its unified tax umbrella.
GST is one unified tax regime that will bring the whole country under one tax rate for various goods and services. The GST Bill was recently passed in Parliament, which was the final step in the process of implementation of the new tax system on July 1st, 2017.
The GST Model Law has provided for a time limit within which the issue of tax invoices, revised bills, credit notes and debit notes are to be issued.
In order to ascertain what kind of tax invoice is to be issued, we have to first establish what a tax invoice is.
An invoice is a document that proves the existence of a transaction of goods and/or services and it is a vital document, recording the time of supply of the good and/or service for the purpose of availing an input tax credit.
A tax invoice is a to be issued by a registered taxable individual that provides a description of the goods or services, value, tax and other such items at the time of supply.
It is a document that provides proof of the supply of goods and services, which is the means used for the calculation of tax on those commodities and services.
The Model GST Law provides for a wider definition of what a tax invoice is, where it is stated as being ‘a document issued by an input service distributor (ISD) which will also include any additional supplementary or revised invoice issued by a supplier in regard to a previous supply that was made.’
A tax invoice will thus include the following:
- A document issued by an input service distributor
- Any supplementary or revised invoice issued by a supplier for supplies made earlier.
Who Should Raise Invoices
The Model GST law also clearly elucidates who should be issuing invoices. According to the law, any individual who supplies taxable goods is required to issue invoices for the supply of the same which carries a description, quantity and value of the goods as well as the tax rates charged for the same.
Details Required In a Tax Invoice
The Model GST Law also stipulates the details to be included in the tax invoice being issued, which are given below:
- Name, address and GSTIN of the supplier.
- Consecutive serial number consisting of only alphabets and/or numerals, unique for a particular financial year.
- Date of issue of the invoice.
- Name, address and GSTIN of the recipient, if registered.
- Name and address of the recipient, the name of the state and its code, address for delivery.
- Description of the good and/or service.
- HSN code of the goods or accounting code of the service.
- Quantity in case of goods and unit or Unique Quantity Code.
- Total value of goods or services.
- Taxable value of goods or services after calculation of discount or abatement, if applicable.
- Rate of tax (CGST, SGST or IGST).
- Place of supply along with state name, in the case of inter-state supply.
- Amount of tax charged for taxable goods or services.
- Place of delivery if it differs from the place of supply.
- If the tax is payable on reverse charge.
- ‘Revised invoice’ or ‘supplementary invoice’, where applicable, indicated prominently, along with the date and invoice number of the original invoice.
- Digital signature or signature of the supplier or an authorised representative.
Details Required For Tax Invoices For Exports
In the case of goods or services that are meant for export, the following list of details are to be mentioned. The invoice should also mention that ‘supply is meant for export on payment of IGST’ or ‘supply is meant for export under bind without payment of IGST’, depending on the case. The details to be mentioned are as given below:
- Name and address of the recipient.
- Name of the country of destination.
- Address of delivery.
- Number and date of application for the removal of goods for export in form ARE-1.
Additional details such as the number of digits of the HSN code for goods or the accounting code for services may also have to be mentioned, if required.
Time Limits For Issuance Of Tax Invoices
With regard to the supply of goods, there are two cases which are to be considered:
- Normal case
- Continuous supply of services.
Normal Case: In the case of supply of goods in normal case, the registered taxable individual who supplies the taxable goods has to issue an invoice mentioning the description, quantity and value of the goods as well as the tax charged.
In cases where the supply involves the movement of goods, the invoice is to be raised on or before the removal of goods from the supplier’s location to that of the buyer’s.
In cases where there is no movement of goods during supply, the invoice is to be raised on or before the delivery date of the goods to the recipient.
Continuous supply of services: In the case of a continuous supply of services or where successive statements of accounts are made, the invoice is to be raised before or at the time each payment is received.
Time Limit For Issue Of Credit Note and Debit Note
A credit note or a debit note is to be issued on either of the following, whichever is earlier:
- On or before the thirtieth day of September following the end of the financial year in which the supply was made.
- The date of the filing of the relevant annual return for that financial year.
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