Draft Invoice Rules under GST Law

Draft Invoice Rules under GST Law

As per GST Law every registered person shall have to issue invoice for supply of goods or services to the recipient. As per Rule (1) of the Draft Invoice Rules under GST Law invoice shall contain specified details. First lets have a look when invoice needs to be issued.

When to issue invoice?

A registered person supplied goods shall invoice before or at the time of

  1. Removal of goods where supply involves movement of goods
  2. delivery of goods or making available thereof to the recipient in other case.

Draft Invoice Rules under GST Law

  1. Name, Address and GSTIN of the supplier
  2. consecutive serial number containing only alphabets and/or numerals, unique for a financial year
  3. date of its issue
  4. name, address and GSTIN/ Unique ID Number, if registered, of the recipient;
  5. name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is unregistered and where the taxable value of supply is fifty thousand rupees or more
  6. HSN code of goods or Accounting Code of services
  7. description of goods or services
  8. quantity in case of goods and unit or Unique Quantity Code thereof
  9. total value of goods or services
  10. taxable value of goods or services taking into account discount or abatement, if any
  11. rate of tax (CGST, SGST or IGST)
  12. amount of tax charged in respect of taxable goods or services (CGST, SGST or IGST)
  13. place of supply along with the name of State, in case of a supply in the course of inter-State trade or commerce
  14. place of delivery where the same is different from the place of supply
  15. whether the tax is payable on reverse charge
  16. the word “Revised Invoice” or “Supplementary Invoice”, as the case may be, indicated prominently, where applicable along with the date and invoice number of the original invoice
  17. signature or digital signature of the supplier or his authorized  representative.

Manner of issuing Invoice

In case of SupplyIn case of Service
Invoice is to be issued in TriplicateInvoice is to be issued in duplicate
Original for Recipient
Duplicate for transporter
Triplicate for Supplier
Original for Recipient
Duplicate for Supplier
The serial number of invoices issued during a tax period shall be furnished electronically through the Common Portal in Form GSTR-1The serial number of invoices issued during a tax period shall be furnished electronically through the Common Portal in Form GSTR-1

Supplementary tax invoice and Credit or debit notes

Where a tax invoice has been issued for supply of any goods or services and the taxable value or tax charged in that tax invoice is found to exceed the taxable value and/or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or services supplied are found to be deficient, the registered taxable person, who has supplied such goods and/or services, may issue to the recipient a  credit note containing such particulars as may be prescribed.
Any registered taxable person who issues a credit note in relation to a supply of goods and/or services shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than September following the end of the year in which such supply was made made, or the date of filing of the relevant annual return, whichever is earlier.
Where a tax invoice has been issued for supply of any goods and/or services and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the taxable person, who has supplied such goods and/or services, shall is sue to the recipient a debit note containing such particulars as may be prescribed.
‘Debit Note’ shall include a supplementary invoice.
Any registered taxable person who issues a debit note in relation to a supply of goods and/or services shall declare the details of such debit note, in the return of that month.
  1. name, address and GSTIN of the supplie
  2. nature of the document
  3. A consecutive serial number containing only alphabets and/or numerals, unique for a financial year
  4. date of issue of the document
  5. name, address and GSTIN/ Unique ID Number, if registered, of the recipient
  6. name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is unregistered
  7. serial number and date of the corresponding tax invoice or, as the case may be, bill of supply
  8. taxable value of goods or services, rate of tax and the amount of the tax credited or , as the case may be , debited to the recipient
  9. signature or digital signature of the supplier or his authorized representative.

Tax Invoice in case of Input Service Distributor

The Input Service Distributor shall distribute, in such manner as may be prescribed, the credit of CGST as CGST or IGST and IGST as IGST or CGST, by way of issue of a prescribed document containing, inter alia , the amount of input tax credit being distributed or being reduced thereafter, where the Distributor and the recipient of credit are located in different States.
A tax invoice issued by an Input Service Distributor shall contain the following details:
  1. name, address and GSTIN of the Input Service Distributor
  2. A consecutive serial number containing only alphabets and/or numerals, unique for a financial year
  3. date of its issue
  4. name, address and GSTIN of the supplier of services, the credit in respect of which is being distributed and the serial number and date of invoice issued by such supplier
  5. name, address and GSTIN of the recipient to whom the credit is distributed
  6. amount of the credit distributed
  7. signature or digital signature of the supplier or his authorized representative

Tax Invoice in special cases

CaseExceptions / Additional Requirement
Taxable service is a banking company or a financial institution including a non - banking financial companyCan be without serial number, Can be without address of receipient, but shall contain all details as prescribed under rule 1
Taxable service is a goods transport agency supplying services in relation to transportation of goods by road in a goods carriageShall contain details regarding gross weight of the consignment, name of the consignor and the consignee, registration number of goods carriage in which the goods are transported, details of goods transported, details of place of origin and destination, GSTIN of the person liable for paying tax whether as consignor, consignee or goods transport agency, and also contains other information as prescribed under rule 1
Taxable service is supplying passenger transportationtax invoice shall include ticket in any form, by whatever name called, and whether or not containing the address of the recipient of service but containing other information as prescribed under rule 1.

Refer to Sample Draft Invoice format

http://www.cbec.gov.in/htdocs-cbec/gst/draft-formats-under-invoice-rules.pdf

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Author: smit shah

I am a passionate Chartered Accountant having deep interest in taxation with combination of blogging.

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