In this article, we’re going to take a closer look at the tax invoice under GST.

Tax Invoice for supply of Goods


When to issue an invoice depends on the type of supply, namely whether it is a question of the supply of goods or services. The registered person supplying taxable goods shall, before or at the time of removal of goods where supply involves movement of goods or delivery or making available to the recipient, issue a tax invoice from which the description, quantity and value of the goods, the tax levied  thereon and other information contained in the Invoicing rules of GST.
The government may, on the recommendation of the Council by notification the categories of goods for which a tax invoice shall be issued within the  such time and in such a manner as may be prescribed.

 

When is the tax invoice required to be issued for supply of goods?

As per Sec 31(1) of the CGST Act, 2017, The issue of an invoice in case of supply of goods is divided into two parts:
(a) If movement of goods is involved: The tax invoice is to be issued before or at the time of removal of goods for supply to the recipient.
(b) If movement of goods is not involved: The tax invoice is to be issued before or at the time goods are delivered or made available to the recipient.
Note: The tax invoice can be issued after the removal of goods, but this would be assessed as a violation of section 31 and will be subject to penalty.

 

If movement of goods is involved: The tax invoice is to be issued before or at the time of removal of goods for supply to the recipient.
Case 1: Supplier issues invoice to recipient: The supplier prepares the invoice before or at the time of removal of goods for supply to the recipient. Here, there is a supply which involves the movement of goods.

Case 2: Agent issues invoice of principal: The agent prepares the invoice of principal and does not issues his/her own invoice, here the supplier issues delivery challan (Rule 55) at the time of removal of goods to the agent as there is no supply involved in this transaction. The tax invoice must be prepared when there is a supply which involves movement of goods. If goods are supplied by the agent, then in such a case agent has to prepare tax invoice of the principal before or at the time of removal of goods. 

Case 3: Agent issues own invoice: The agent prepares his/her own invoice, here the supplier issues tax invoice as there is supply which also involves movement of goods.

 

If movement of goods is not involved: The tax invoice is to be issued before or at the time goods are delivered or made available to the recipient.

 

How many copies of tax invoice are required to be maintained in case of supply of goods?

The tax invoice in case of supply of goods is to be issued in Triplicate where,
(a) Original for reipient
(b) Duplicate for transporter
(c) Triplicate for supplier

 

Tax Invoice for supply of Service


When to issue an invoice depends on the type of supply, namely whether it is a question of the supply of goods or services. The registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as prescribed in the Invoice Rules.
The Government may, on the recommendations of the Council, by notification and subject to such conditions as may be mentioned therein, specify the categories of services in respect of which:
(a) Any other document issued in relation to the supply shall be deemed to be a tax invoice; or
(b) Tax invoice may not be issued.

 

When is the tax invoice required to be issued for supply of service?

As per Sec 31(1) of the CGST Act, 2017, The issue of an invoice in case of supply of services an invoice shall be issued before or after the provision of services. If the invoice is issued after the provision of service, it has to be done within the specified period of 30 days from the date of supply of service, as per invoice rules.

 

How many copies of tax invoice are required to be maintained in case of supply of service?

The tax invoice in case of supply of service is to be issued in Duplicate where,
(a) Original for reipient
(b) Duplicate for supplier

 

Contents of Tax Invoice


Particulars Contents
Name of document Tax Invoice
Details of supplier Name, Address, GSTIN
Consecutive serial number or Invoice number not exceeding 16 characters containing alphabets/ numerals/special characters/hyphen/dash/slash and any combination thereof unique for a Financial Year. Invoice Number
Date of the issue of Invoice Invoice Date
Details of the recipient who is registered under GST. (B2B Transaction) Name, Address, GSTIN
Details of recipient who is not registered under GST (B2C Transaction) Name, Address,
Place of Supply along with the name of the state. Place of supply
Address of delivery where it is different from the place of supply Bill to Ship to
Description of goods or services Product Name with HSN or Service Name with SAC
Quantity in case of goods and unit or unique quantity code thereof Unique Quantity Code (Eg: MTRS, KGS)
Taxable Value of supply of goods or services or both taking into account discount or abatement (if any) Taxable Value after discount
Rate of Tax (CGST, SGST, IGST or UTGST) GST Rate as per Tariff
Amount of Tax charged in respect of taxable goods or services Tax Amount
Total Value of supply of goods or services or both Invoice Value
Reverse charge mechanism Whether tax is payable on reverse charge basis
Digital Signature or signature of the supplier or his authorized representative Signature