INVOICE PROCESS TAX INVOICE OVERVIEW Invoice is a document - PowerPoint PPT Presentation

HELPING CLIENTS KEEP MORE OF WHAT THEY EARN GOODS AND SERVICES TAX INVOICE PROCESS

TAX INVOICE – OVERVIEW  Invoice is a document recording the terms of an underlying arrangement. An invoice does not bring into existence an agreement but merely records the terms of a pre-existing agreement.  An invoice is required for every other form of supply such as: • transfer, • barter, • exchange, • License, • rental, • lease or • disposal.  Under the GST regime the tax invoice or bill of supply is to be issued before or on the occurrence of certain event or within a prescribed time. 2

TAX INVOICE - ORIGIN Registered taxable person shall issue tax invoice Supplying Taxable Supplying Taxable services goods Before or after the Where the supply Where the supply provision of service does not involve involves movement of but within a period movement of goods goods tax invoice shall prescribed in this tax invoice shall be be issued before or at behalf. issued at the time of the time of removal. delivery of goods to the recipient. 3 Section 28(1) of Central /State Goods & Service Tax Act 2016

TAX INVOICE - ORIGIN  Revised invoices may be issued against the invoice already issued during the period starting from the effective date of registration till the date of issuance of certificate of registration within one month from date of issuance of certificate of registration .  Composition dealers to issue a bill of supply instead of tax invoice.  Payment of advance will require that a ‘receipt’ be issued and not an invoice.  Where tax is payable on reverse charge basis , the recipient is required to prepare an invoice either tax invoice or bill of supply to record and confirm facts relating to supplies received from persons who are not registered under the Act.  The document issued by an Input Service Distribution will be deemed to be considered as a tax invoice.  Invoice in respect of goods sent ‘on approval’ is required to be issued at the earlier of the end of 6 months from their removal or approval to accept supply is indicated to supplier. 4 Section 28 of Central /State Goods & Service Tax Act 2016

CONTINOUS SUPPLY OF GOODS  As per section 2(29), the Continuous supply of goods means which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis. For e.g. supply of gas through a pipeline or RMC supplied to site or TV signals through cables. The invoice to be issued before Successive Statements of Continuous supply of goods or at the time each such accounts or successive involves statement is issued or each payments such payment is received. 5 Section 28(4) of Central /State Goods & Service Tax Act 2016

CONTINUOUS SUPPLY OF SERVICE  As per section 2(30), the continuous supply of service means a supply of services which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding three months with periodic payment obligation and includes supply of such service as the Central or a State Government may, whether or not subject to any condition, by notification, specify. For e.g. annual repair service or internal audit.  In case of continuous supply of service the invoice is to be issued as: In case due date of payment of service is known invoice to be issued before or after the payment date. In case due date of payment of service not known invoice to be issued at the time of receipt of payment. In case of completion of contract of service invoice to be issued at the time of completion of contract. 6 Section 28(5) of Central /State Goods & Service Tax Act 2016

OTHER RELATED PROVISIONS  On cessation of a contract for supply of services, the invoice is required to be issued to the extent supply is complete prior to cessation.  The Central and State Government on the recommendation of council shall notify such supply of goods and services which will be treated as continuous supply.  A unregistered taxable person shall not collect in respect of any supply of goods and/or services any amount by way of tax under the CGST/SGST Act.  The amount of tax to be charged on the price at which such supply is made shall prominently be indicated in all documents relating to assessment, tax invoice and other like documents. Section 28(6), 29 and 30 of Central /State Goods & Service Tax Act 2016 7

DEBIT/CREDIT NOTES Charged in Tax Invoice > Amount Payable or Taxable Person to goods returned by issue CREDIT Note* recipient or services Where Taxable value found deficient and/or tax Charged in Tax Invoice Taxable Person to . < Amount Payable issue DEBIT Note  Registered taxable person issuing Debit/ Credit notes to declare its details in the return for the month during which such notes are issued /received or in the return for any subsequent month but not later than September following the end of F.Y. of supply, 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. * No Credit Note can be issued if the incidence of tax and interest on such supply has been passed on to any other person. Section 31 of Central /State Goods & Service Tax Act 2016 8

DETAILS TO BE FURNISHED IN TAX INVOICE  Name, address and GSTIN of the supplier  A consecutive serial number containing only alphabets/numerical  Date of issue  Name, address and GSTIN/ unique ID Number of the recipient  Address of delivery along with the state code  HSN code of goods/ accounting code of service  Description of goods and service  Quantity in case of goods or unique quantity code  Total value of goods and service  Taxable value of goods and service post discounts/abatements  Rate and amount of tax in relation to CGST, SGST & IGST  Place of supply along with the name of state in case of interstate trade / commerce.  Place of delivery where the same is different from place of supply  Signature or digital signature of the supplier or his authorized representative.  In case of export the invoice shall carry an endorsement “SUPPLY MEANT FOR EXPORTS ON PAYMENT OF IGST” or “ SUPPLY MEANT FOR EXPORT UNDER BOND WITHOUT PAYMENT OF IGST” 9 Invoice Rules of Central /State Goods & Service Tax Act 2016

PERFORMA OF TAX INVOICE Government of India/State Department of ………………… Form GST INV – 1 (See Rule --------) Application for Electronic Reference Number of an Invoice 1. GSTIN 2. Name 3. Address 4. Serial No. of Invoice 5. Date of Invoice Details of Receiver (Billed to) Details of Consignee (Shipped to) Name Name Address Address State State State Code State Code GSTIN/Unique ID GSTIN/Unique ID Description Rate Taxa Sl. Total Disco CGST SGST IGST HSN Qty Unit of Goods/ per ble No. unt Rate Amt Rate Amt Rate Amt Services item Amt Freight Insurance Packing and forwarding charges Grand Total Total Invoice value (in figure) Total Invoice value (in words) Amount of tax subject to reverse charge Declaration Signature Name of the signatory Designation /status Electronic reference number Date 10 Invoice Rules of Central /State Goods & Service Tax Act 2016

MANNER OF ISSUING TAX INVOICE  In case of supply of goods the invoice shall be prepared in triplicate :  The original marked as “original for recipient”  The duplicate marked as “ duplicate for transporter”  The triplicate marked as “triplicate for supplier”  In case of supply of service the invoice shall be prepared in duplicate :  The original marked as “original for recipient”  The duplicate marked as “duplicate for supplier”  The invoice shall be issued within a period of 30 days from the date of supply of service. 11 Invoice Rules of Central /State Goods & Service Tax Act 2016

DETAILS TO BE FURNISHED IN BILL OF SUPPLY • Name , address and GSTN of the supplier. • Consecutive serial numbers containing only alphabets and / or numerical. • Date of its issue. • Name , address and GSTN/ unique ID no. of the recipient. • HSN code of goods or accounting codes of services • Description of goods and services. • Value of goods or services post discount / abatement. • Signature or digital signature of the supplier or its authorized representative. Note: The registered taxable person may not issue a bill of supply if the value of goods and service supplied is less than 100 rupees except where the recipient of the goods or services requires such bill. . 12 Invoice Rules of Central /State Goods & Service Tax Act 2016

DETAILS TO BE FURNISHED IN CREDIT / DEBIT NOTE • Name , address and GSTN of the supplier. • Nature of document. • Consecutive serial numbers containing only alphabets and / or numerical. • Date of its issue. • Name , address and GSTN/ unique ID no. of the recipient along with state. • Serial number and the date of corresponding tax invoice or bill of supply as the case may be. • Taxable value of goods or service. • The rate of tax and the amount of tax credited / debited to the recipient. • Signature or digital signature of the supplier or its authorized representative. . 13 Invoice Rules of Central /State Goods & Service Tax Act 2016

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