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Tax Invoice, Credit and Debit Note

There are separate as well as common provisions in case of goods and services.
 

Separate provision in respect of goods.
Who shall issue a Tax Invoice in case of goods. A registered person supplying taxable goods shall issue a Tax Invoice showing description, quantity, value, tax and other particulars prescribed by Rules.
When to issue a Tax Invoice in case of goods. Time to issue, depends on the type of supply and situation.

Type of Supply Situation Tax invoice shall be issued
One time supply Where supply involves movement of goods; before or at the time of removal of goods
Where movement of goods is not involved. before or at the time of delivery of goods or making it available to recipient
Movement of goods can be said to be involved, where supply will get complete, only after the removal of goods from one place to another. Removal of goods means:
  1. dispatch of the goods for delivery by the supplier thereof or by any other person acting on behalf of such supplier; or
  2. collection of the goods by the recipient thereof or by any other person acting on behalf of such recipient.
Continuous supply When successive statements of accounts are issued, before or at the time of each such statement is issued.
When successive payments are involved, before or at the time of each such payment is received.
Goods 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 six months from the date of removal, which is earlier.
Who shall issue a Tax Invoice in case of services.[Section 31(2)] A registered person supplying taxable services shall issue a Tax Invoice showing description, quantity, value, tax and other particulars prescribed by Rules. The Government has power to notify that in case of specified category of services:

(a) any other document issued shall be deemed to be a tax invoice;

(b) tax invoice may not be issued.

When to issue a Tax Invoice in case of services. [Section 31(2)] Time to issue, depends on the type of supply and situation.
One time supply Services other than insurer, banking, financial institution. Before or after supply but within thirty days from the date of supply.
Services of insurer, banking company, financial institution including a non-banking company. Within forty five days from the supply of service.
Continuous supply Where due date of payment is ascertainable from the contract. On or before due date of payment.
Where due date of payment is not ascertainable from contract. Before or at the time when supplier receives payment.
Where the payment is linked with completion of an event. On or before the date of completion of that event.
Where supply of services ceases under a contract, before completion of supply, Invoice shall be issued at the time when supply ceases and such invoice shall be issued to the extent of supply made before such cessation.
Common provisions regarding various types of Invoices for Goods as well as for services.
Revised invoice after obtaining the Registration certificate. This is optional provision to issue revised invoice in place of already issued between the period effective date of RC and the date on which RC is received. Because of this provision the recipient will get the Invoices with the RC No. within 30 days from date of Registration
No Tax Invoice if value is up to ₹ 200 This is optional Subject to prescribed conditions and manner.
Bill of Supply This is mandatory but where the value is less than ₹ 200, it may not be issued subject to prescribed conditions and manner. Applicable in case of exempted supply, and to Composition supplier. Subject to prescribed particulars and manner.
Any tax invoice or any other similar document issued under any other Act for the time being in force in respect of any non-taxable supply shall be treated as a bill of supply for the purposes of the Act.
Receipt voucher/or other document evidencing advance payment. This is mandatory. To be issued by registered person in case of receipt of advance payment. Subject to prescribed particulars.
Refund voucher This is optional. To be issued where receipt voucher was issued for advance payment, but subsequently no supply is made or no tax invoice was issued.
Recipient to issue invoice This is mandatory. Where tax is payable
u/s. 9(3) or 9(4) for inward supply.
To be issued on the date of receipts of goods/services/both. Provided a consolidated invoice at the end of a month where the aggregate value of such supplies exceeds rupees five thousand in a day from any or all the suppliers.
Recipient to issue payment voucher This is mandatory. Where tax is payable
u/s. 9(3) or 9(4) for inward supply.
To be issued at the time of making payment to supplier.
How many copies of Invoice to be prepared in case of goods. This is mandatory. Three in case of goods. To be marked as ORIGINAL FOR RECIPIENT, DUPLICATE FOR TRANSPORTER and TRIPLICATE FOR SUPPLIER.
How many copies of Invoice to be prepared in case of services. This is mandatory. Two in case of services. To be marked as ORIGINAL FOR RECEIPIENT and DUPLICATE FOR SUPPLIER.
Credit Note for reduction in value of supply or tax amount. To be issued containing prescribed particulars to the recipient where value or tax amount showed in Tax Invoice is to be reduced on account of shown in excess, goods returned, or supply was deficient. The details of credit note shall be declared in the return for the month during which such credit note is issued but not later than September of the next year or the date of furnishing of the relevant annual return, whichever is earlier, and tax liability shall be adjusted in prescribed manner. However, no reduction in output tax liability is permitted, if the incidence of tax and interest on such supply has been passed on to any other person.
Debit Note for increase in value of supply or tax amount, containing prescribed particulars. To be issued to the recipient where value or tax amount showed in Tax Invoice is to be increased. The details of debit note shall be declared in the return for the month during which such debit note is issued but not later than September of the next year or the date of furnishing of therelevant annual return, whichever is earlier, and tax liability shall be adjusted in prescribed manner. However, a debit note shall include a supplementary invoice.
Particulars to be specified in the ‘Tax Invoice’:
  1. Name, address and Goods and Services Tax Identification Number of the supplier;
  2. A consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters-hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year;
  3. Date of its issue;
  4. Name, address and Goods and Services Tax Identification Number or Unique Identity Number, if registered, of the recipient;
  5. Name and address of the recipient and the address of delivery, along with the name of the State and its code, if such recipient is un-registered and where the value of the taxable supply is fifty thousand rupees or more;
  6. Name and address of the recipient and the address of delivery, along with the name of the State and its code, if such recipient is un-registered and where the value of the taxable supply is less than fifty thousand rupees and the recipient requests that such details be recorded in the tax invoice;
  7. Harmonised System of Nomenclature code for goods or services;
  8. Description of goods or services; quantity in case of goods and unit or Unique Quantity Code thereof;
  9. Total value of supply of goods or services or both;
  10. Taxable value of the supply of goods or services or both taking into account discount or abatement, if any;
  11. Rate of tax (Central Tax, State Tax, Integrated Tax, Union Territory Tax or cess);
  12. Amount of tax charged in respect of taxable goods or services (Central Tax, State Tax, Integrated Tax, Union Territory Tax or cess);
  13. Place of supply along with the name of the State, in the case of a supply in the course of inter-State trade or commerce;
  14. Address of delivery where the same is different from the place of supply;
  15. Whether the tax is payable on reverse charge basis;
  16. Signature or digital signature of the supplier or his authorised representative:

In case of export Invoice, in addition to above details, it shall carry an endorsement “SUPPLY MEANT FOR EXPORT ON PAYMENT OF INTEGRATED TAX” or “SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”, as the case may be, and instead of clause (e) above, the following details are required:–

  1. Name and address of the recipient;
  2. Address of delivery; and
  3. Name of the country of destination: Provided also that a registered person may not issue a tax invoice in accordance with the provisions of clause (b) of sub-section (3) of section 31 subject to the following conditions, namely,
    1. The recipient is not a registered person; and
    2. The recipient does not require such invoice, and shall issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies.
Details to be specified in ‘Bill of Supply
  1. Name, address and Goods and Services Tax Identification Number of the supplier;
  2. A consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters -hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year;
  3. Date of its issue;
  4. Name, address and Goods and Services Tax Identification Number or Unique Identity Number, if registered, of the recipient;
  5. Harmonised System of Nomenclature Code for goods or services;
  6. Description of goods or services or both;
  7. Value of supply of goods or services or both taking into account discount or abatement, if any; and
  8. Signature or digital signature of the supplier or his authorised representative:
Particulars to be specified in the ‘Receipt Voucher’
  1. Name, address and Goods and Services Tax Identification Number of the supplier;
  2. A consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters – hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year;
  3. Date of its issue;
  4. Name, address and Goods and Services Tax Identification Number or Unique Identity Number, if registered, of the recipient;
  5. Description of goods or services;
  6. Amount of advance taken;
  7. Rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);
  8. Amount of tax charged in respect of taxable goods or services (Central Tax, State Tax, Integrated Tax, Union Territory Tax or cess);
  9. Place of supply along with the name of State and its code, in case of a supply in the course of inter-State trade or commerce;
  10. Whether the tax is payable on reverse charge basis; and
  11. Signature or digital signature of the supplier or his authorised representative: Provided that where at the time of receipt of advance,
    1. The rate of tax is not determinable, the tax shall be paid at the rate of eighteen per cent;
    2. The nature of supply is not determinable; the same shall be treated as inter-State supply.
Particulars to be specified in the ‘Refund Voucher’:
  1. Name, address and Goods and Services Tax Identification Number of the supplier;
  2. A consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters-hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year;
  3. Date of its issue;
  4. Name, address and Goods and Services Tax Identification Number or Unique Identity Number, if registered, of the recipient;
  5. Number and date of receipt voucher issued in accordance with the provisions of rule 50;
  6. Description of goods or services in respect of which refund is made;
  7. Amount of refund made;
  8. Rate of tax (Central Tax, State Tax, Integrated Tax, Union Territory Tax or cess);
  9. Amount of tax paid in respect of such goods or services (Central Tax, State Tax, Integrated Tax, Union Territory Tax or cess);
  10. Whether the tax is payable on reverse charge basis;
  11. Signature or digital signature of the supplier or his authorised representative.
Particulars to be specified in the ‘Payment Voucher’:
  1. name, address and Goods and Services Tax Identification Number of the supplier if registered;
  2. A consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters-hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year;
  3. Date of its issue;
  4. Name, address and Goods and Services Tax Identification Number of the recipient;
  5. Description of goods or services;
  6. Amount paid;
  7. Rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);
  8. Amount of tax payable in respect of taxable goods or services (Central Tax, State Tax, Integrated Tax, Union Territory Tax or cess);
  9. Place of supply along with the name of State and its code, in case of a supply in the course of inter-State trade or commerce;
  10. Signature or digital signature of the supplier or his authorised representative.
Particulars to be specified in the ‘Revised Tax Invoice and Debit and Credit Note’:
  1. The word “Revised Invoice”, wherever applicable, indicated prominently;
  2. Name, address and Goods and Services Tax Identification Number of the supplier;
  3. Nature of the document;
  4. A consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters-hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year;
  5. Date of issue of the document;
  6. Name, address and Goods and Services Tax Identification Number or Unique Identity Number, if registered, of the recipient;
  7. Name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is un-registered;
  8. Serial number and date of the corresponding tax invoice or, as the case may be, bill of supply;
  9. Value of taxable supply of goods or services, rate of tax and the amount of the tax credited or, as the case may be, debited to the recipient;
  10. Signature or digital signature of the supplier or his authorised representative.
Particulars in the ‘Tax Invoice and Debit and Credit Note’ to be specified in special cases i.e. by persons mentioned below:
  1. Input Service Distributor
    1. Name, address and GSTIN of the ISD;
    2. Consecutive serial number not exceeding sixteen character, in one or multiple series, containing alphabets or numerals or special characters - hyphen or dash and slash symbolized as “ – “ and “ / “ respectively, and any combination thereof, unique for a financial year;
    3. Date of its issue;
    4. Name, address and GSTIN of the recipient to whom the credit is distributed;
    5. Amount of credit distributed;
    6. Signature or digital signature of the ISD or his representative.
  2. Banking Company or Financial Institution: Where the ISD is the office of a banking company or a financial institution, including a non-banking financial company, a tax invoice shall include any document in lieu thereof, by whatever name called, whether or not serially numbered but containing the information as mentioned above.
  3. Insurer or Banking Company: Where the supplier is insurer or a banking company or a financial institution including non-banking financial company, it shall issue a tax invoice or any other document in lieu thereof, by whatever name called, whether issued or made available physically or electronically whether or not serially numbered, and whether or not containing the address of the recipient but containing other information mentioned under rule 46.
  4. Goods Transport Agency: Where the supplier is Goods Transport Agency supplying services in relation to transportation of goods by road in a goods carriage, it shall issue a tax invoice or any other document in lieu thereof, by whatever name called, containing the gross weight of the consignment, name of consigner and 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 to pay tax whether as consignee or goods transport agency and aslo containing other information mentioning under rule 46.
  5. Passenger Transportation Service: Where the supplier is passenger transport agency a tax invoice shall include ticket in any form by whatever name called whether or not serially numbered and whether or not containing the address of the recipient but containing other information mentioning under rule 46.
Delivery challan for transportation of goods without invoice can be issued under following circumstanes
  1. Supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known;
  2. Transportation of goods for job work;
  3. Transportation of goods for reason other than by way of supply;
  4. Such other supplies as may be notified by the Board;
  5. Where the goods being transported are for the purpose of supply, but the tax invoice could not be issued at the time of removal of goods;
  6. Where the goods are being transported in a semi knocked down or completely knocked down condition:
    1. The supplier shall issue the complete invoice before dispatch of the first consignment;
    2. The supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;
    3. Each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice;
    4. The original copy of the invoice shall be sent along with the last consignment. the consigner may issue a delivery challan in lieu of invoice at the time of removal of goods for transportation.
Particulars in delivery challan for transportation of goods without invoice.
  1. Serial Number not exceeding sixteen characters, in one or multiple series;
  2. Where goods are being transported on a delivery challan in lieu of invoice, the same shall be declared as specified in Rule 138 for E-way Bill;
  3. Date and number of delivery challan;
  4. Name, address and GSTIN or UIN of the consignee(if registered);
  5. HSN code and description of goods;
  6. Provisional quantity(where exact quantity is not known);
  7. Taxable value;
  8. Tax rate, and amount of Central Tax, State Tax, Integrated Tax, Union Territory Tax or cess, where the transportation is for supply to consignee;
  9. Place of supply, in case of inter-State movement; and
  10. Signature
Three copies of Delivery Challan shall be prepared. First one to be marked as ORIGINAL FOR RECIPIENT

Second one to be marked as DUPLICATE FOR TRANSPORTER

Third one to be marked as TRIPLICATE FOR SUPPLIER.

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