Section 31 contains provisions relating to Tax Invoice. There is no format prescribed for the tax invoice.

Section 31(1)

RP supplying taxable goods shall issue a tax invoice, before or at the time of,—

(a) removal of goods for supply to the recipient, if supply involves movement of goods; or

(b) delivery of goods or making available thereof to the recipient, in any other case,

Ex

Mr X, Delhi supplies goods to Mr Y, Haryana. The goods were removed from its factory in Delhi on 20^th Aug. Mr X must issue a tax invoice on or before 20^th Aug.

Question & Answer

1^st Proviso to Section 31(1)

Government may, by notification, specify the categories of goods or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed.

Section 31(2) read with Rule 47

RP supplying taxable services shall issue a tax invoice,

before supply of service or

within 30 days from the date of supply of service

Ex

Mr X provides audit services to Mr Y. Mr X completed audit on 15^th Sep. Mr X must issue tax invoice on or before 14^th Oct.

Question & Answer

1^st Proviso to Rule 47

where the supplier of services is an insurer or a banking company or a financial institution, including a NBFC,

invoice or any document in lieu thereof is to be issued within 45 days from the date of the supply of service:

Question & Answer

2^nd Proviso to Rule 47

An insurer or a banking company or a financial institution, including a NBFC, or a telecom operator, or any other class of supplier of services as may be notified by the Government,

making taxable supplies of services between distinct persons as specified in section 25,

may issue the invoice

before or at the time supplier records the same in his books of account or

before the expiry of the quarter during which the supply was made

Section 31(4)

In case of continuous supply of goods, where successive statements of accounts or successive payments are involved,

the invoice shall be issued before or at the time each such

statement is issued or,

each such payment is received.

Question & Answer

Section 31(5)

Subject to the provisions of clause (3)(d), in case of continuous supply of services,–

.

Section 2(33)

For continuously supply of services,

Services should be provided continuously for a period exceeding 3 months and

there should be periodic payment obligation.

Question & Answer

Section 31(6)

where the supply of services ceases under a contract before the completion of the supply,

invoice shall be issued at the time when the supply ceases and

such invoice shall be issued to the extent of the supply made before such cessation.

If services ceases before its completion, invoices shall be issued at the time when supply ceases.

Invoice shall be issued to the extent of supply made.

Section 31(7)

where the goods being sent or taken on approval for sale or return are removed before the supply takes place,

invoice shall be issued earlier of

before or at the time of supply or

6 months from the date of removal

Ex

B Ltd. sends goods to C Ltd. for sale on approval basis on 10th Jan. C Ltd. approves the goods on 15th Aug. B Ltd. should issue the invoice on 10th July as the supply gets fructified after six months from the date of removal.

Time of supply of the goods for the purpose of payment of tax is 10th July being the last date on which invoice ought to have been issued in terms of section 31.

Question & Answer

Section 31(1)

Tax Invoice for supply of goods shall be showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed

Section 31(2)

Tax invoice for supply of services shall be showing the description, value, tax charged thereon and such other particulars as may be prescribed

Rule 46

Subject to rule 54, a tax invoice shall contain the following particulars, namely,-

(a) name, address and GSTIN of the supplier;

(b) a consecutive serial no. not exceeding 16 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 FY;

(c) date of its issue;

(d) name, address and GSTIN or UIN, if registered, of the recipient;

(e) name and address of the recipient and the address of delivery, name of the State and its code, if such recipient is un-registered and where the value of the taxable supply is Rs,50,000 or more;

(f) name and address of the recipient and the address of delivery, name of the State and its code, if such recipient is un-registered and where the value of the taxable supply is less than Rs.50,000 and the recipient requests that such details be recorded in the tax invoice;

[1][Provided that where any taxable service is supplied to an unregistered person

by or through an ECO or

by a supplier of OIDAR services

irrespective of the value of such supply, a tax invoice issued by RP shall contain the name and address of the recipient along with its PIN code and the name of the State and the said address shall be deemed to be the address on record of the recipient]

(g) HSN code for goods or services;

(h) description of goods or services;

(i) quantity in case of goods and unit or Unique Quantity Code thereof;

(j) total value of supply of goods or services;

(k) taxable value of the supply of goods or services taking into account discount or abatement, if any;

(l) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);

(m) amount of tax charged (central tax, State tax, integrated tax, Union territory tax or cess);

(n) place of supply with the name of the State, in the case of a supply in the course of inter-State trade or commerce;

(o) address of delivery where the same is different from the place of supply;

(p) whether the tax is payable on reverse charge basis; and

(q) signature or digital signature of the supplier or his authorised representative:

[2][(r) Quick Response code, having embedded Invoice Reference Number (IRN) in it, in case invoice has been issued as per rule 48(4)]

[3][(s) a declaration as below, that invoice is not required to be issued in the manner specified u/r 48(4) in all cases where an invoice is issued, other than in the manner so specified u/sr 48(4) by the taxpayer having aggregate turnover (AT) in any preceding FY from 2017-18 onwards more than the AT as notified u/sr 48(4).

“I/We hereby declare that though our aggregate turnover in any preceding FY from 2017-18 onwards is more than the aggregate turnover notified u/sr 48(4), we are not required to prepare an invoice in terms of the provisions of the said sub-rule.”]

Question & Answer

3^rd Proviso to Rule 46

In the case of the export of goods or services,

the invoice shall carry an endorsement

“SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS ON PAYMENT OF INTEGRATED TAX” or

“SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”,

and shall, in lieu of the details specified in clause (e), contain the following details, namely,-

(i) name and address of the recipient;

(ii) address of delivery; and

(iii) name of the country of destination

As per rule 46(g) of CGSTR, HSN code must be mentioned on tax invoice. However following exemption has been given in 1^st proviso to Rule 46

1^st Proviso to Rule 46

Board may, by notification, specify-

(i) the number of digits of HSN code for goods or services that a class of RP shall be required to mention; or

(ii) a class of supply of goods or services for which specified number of digits of HSN code shall be required to be mentioned by all RP; and

(iii) the class of RP that would not be required to mention the HSN code for goods or services:]

Under 1st proviso to rule 46, board has issued Notification No. 12/2017-Central Tax dt. 28-06-2017.

Following RPs are required to mention HSN code in tax invoice

1.

From 01-07-2017 to 31-03-2021

RP having annual turnover in the preceding FY as specified in column (2) shall mention the digits of HSN Codes, as specified in column (3), in a tax invoice

.

2.

From 01-04-2021

RP having annual turnover in the preceding FY as specified in column (2) shall mention the digits of HSN Codes, as specified in column (3), in a tax invoice

.

3.

[4][Wef 01-12-2020, for specified class of supply, 8 digits HSN code is required in a tax invoice.

For specified class of supply, please refer 2^nd Proviso of Notification No. 12/2017-Central Tax dt. 28-06-2017.

Question & Answer

Press Release dated 01-04-2021

Penalty of Rs. 25,000 u/s 125 of CGST Act

Rule 48(1)

Invoice shall be prepared in triplicate, for supply of goods, in the following manner-

(a) original copy being marked as ORIGINAL FOR RECIPIENT;

(b) duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and

(c) triplicate copy being marked as TRIPLICATE FOR SUPPLIER.

Rule 48(2)

Invoice shall be prepared in duplicate, for supply of services, in the following manner,-

(a) the original copy being marked as ORIGINAL FOR RECIPIENT; and

(b) the duplicate copy being marked as DUPLICATE FOR SUPPLIER.

Rule 48(3)

The serial number of invoices issued during a tax period shall be furnished in GSTR-1

The GST Council, in its 37th meeting on 20th Sep 2019, has recommended introduction of electronic invoice (‘e-invoice’) in GST in a phased manner.

e-invoicing has many advantages for businesses such as standardisation, inter-operability, auto-population of invoice details into GST return and other forms (like e-way bill), reduction in processing costs, reduction in disputes, improvement in payment cycles and thereby improving overall business efficiency.

Huge advancements in technology sophistication, increased penetration of internet along with availability of computer systems at reasonable cost has made ‘e-invoice’, a popular choice worldwide.

‘e-invoicing’ means reporting details of specified GST documents to a government-notified portal and obtaining a reference number.  

It doesn’t mean generation of invoice by a government portal.

After following ‘e-invoicing’ process, the invoice copy containing inter alia, the IRN (with QR Code) issued by the notified supplier to buyer is commonly referred to as ‘e-invoice’ in GST.

Because of the standard e-invoice schema (INV-01), ‘e-invoicing’ facilitates exchange of the invoice document (structured invoice data) between a supplier and a buyer in an integrated electronic format.

Please note that ‘e-invoice’ in ‘e-invoicing’ doesn’t mean generation of invoice by a Government portal.

A GST invoice will be valid only with a valid IRN.

[5][Rule 48(4)

Notified RPs shall prepare

invoice by including such particulars contained in GST INV-01 after obtaining an Invoice Reference Number

by uploading information contained therein on the Common GST Electronic Portal

in such manner and subject to such conditions and restrictions as may be specified in the notification.]

[6][1^st Proviso - Commissioner may exempt some RPS for specified period

Commissioner may by notification, exempt a person from issuance of invoice for a specified period, subject to such conditions and restrictions as may be specified in the said notification.]

As per Rule 48(4), notified RPs have to prepare e-invoice by uploading specified particulars of invoice (in GST INV-01) on Invoice Registration Portal (IRP) and obtain an IRN.

Notification No. 13/2020-Central Tax dt. 23-03-2020

RP whose aggregate turnover in any preceding FY from 2017-18 onwards exceeds [7][Rs.5 Cr]

shall prepare e-invoice in respect of supply  

to a registered person [B2B Supply] or

for exports

Question & Answer

e-invoicing requirements does not apply to

[8][a government department, a local authority,

[9][a Special Economic Zone unit and]

an insurer or a banking company or a financial institution, including a non-banking financial company [rules 54(2)];

a goods transport agency supplying services in relation to transportation of goods by road in a goods carriage [rules 54(3)];

supplying passenger transportation service [rules 54(4)];

supplying services by way of admission to exhibition of cinematograph in films in multiplex screens [rules 54(4A)]

Above entities are not required to issue e-invoices even if their AT > Rs.10 cr.

Do SEZ Developers need to issue e-invoices?

Yes, if they have the specified turnover and fulfilling other conditions of the notification. Only SEZ Units are exempted from issuing e-invoices.

Are Free Trade & Warehousing Zones (FTWZ) exempt from e -invoicing?

Yes. As per Foreign Trade Policy, Free Trade & Warehousing Zones (FTWZ) are only a special category of Special Economic Zones, with a focus on trading and warehousing.

B2C supplies

No. Reporting B2C invoices by notified persons is not applicable/allowed currently. However, they will be brought under e-invoice in the next phase.

NIL-rated or wholly-exempt supplies?

No. In those cases, a bill of supply is issued and not a tax invoice.

For high sea sales and bonded warehouse sales, whether e-invoicing is applicable?

No. These activities/transactions are neither supply of goods nor a supply of services, as per Schedule III of CGST/SGST Act.

Is e-invoicing applicable to invoices issued by Input Service Distributor (ISD)?

No

Whether e-invoicing is applicable for invoices between two different GSTINs under same PAN?

Yes. e-invoicing by notified persons is mandated for supply of goods or services or both to a registered person.

As per Section 25(4) of CGST/SGST Act, “A person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act.”

What documents are presently covered under e -invoicing?

GST invoices, Credit Notes and Debit Notes in respect of B2B Supplies & Exports

Whether the financial/commercial credit notes also need to be reported to IRP?

No, only the credit and debit notes issued u/s 34 of CGST/SGST Act have to be reported.

Whether e-invoicing is applicable for supplies by notified persons to Government Departments?

e-invoicing by notified persons is mandated for supply of goods or services or both to a registered person.

Thus, where the Government Department doesn’t have any registration under GST (i.e. not a ‘registered person’), e-invoicing doesn’t arise.

However, where the Govt. department is having a GSTIN (as entity supplying goods/services/ deducting TDS), the same has to be mentioned as recipient GSTIN in the e-invoice.

Is there any time limit of reporting of invoice to IRP?

No such validation is kept on the portal.

Are there any penal provisions for not issuing invoice in accordance with GST Law/rules?

The penal provisions are provided in Section 122 of CGST/SGST Act read with CGST Rules.

1.

Can I amend details of a reported invoice for which IRN has already been generated?

Amendments are not possible on IRP. Any changes in the invoice details reported to IRP can be carried out on GST portal (while filing GSTR-1). In case GSTR1 has already been filed, then using the mechanism of amendment as provided under GST.

However, these changes will be flagged to proper officer for information.

2.

Can an IRN/invoice reported to IRP be cancelled?

Yes. The cancellation request can be triggered through ‘Cancel API’ within 24 hours from the time of reporting invoice to IRP.

However, if the connected e-way bill is active or verified by officer during transit, cancellation of IRN will not be permitted.

In case of cancellation of IRN, GSTR-1 also will be updated with such ‘cancelled’ status.

3.

Can an invoice number of a cancelled IRN be used again?

No. Once an IRN is cancelled, the concerned invoice number cannot be used again to generate another e-invoice/IRN (even within the permitted cancellation window). If it is used again, then the same will be rejected when it is uploaded on IRP.

This is because IRN is a unique string based on Supplier’s GSTIN, Document Number, Type of Document & Financial Year.

4.

Can I partially cancel a reported invoice?

No. It has to be cancelled in toto. No partial cancellation of reported e-invoice allowed.

Cancellation of invoices is governed by Accounting Standards and any other applicable rules/regulations.

Click Here

[10][Rule 48(5)

Every invoice issued by a person to whom sub-rule (4) applies in any manner other than the manner specified in the said sub-rule shall not be treated as an invoice.]

[11][Rule 48(6)

The provisions of sub-rules (1) and (2) shall not apply to an invoice prepared in the manner specified in sub-rule (4).]

Notification No. 73/2020-Central Tax dated-01-10-2020.pdf

In exercise of the powers conferred by section 148,

CG hereby notifies the RPs required to prepare the tax invoice in the manner specified u/sr 48(4), who have prepared tax invoice in a manner other than the said manner,

as the class of persons who shall, during the period from the 01-10-2020 to 31-10-2020, follow the special procedure such that the said persons shall obtain an Invoice Reference Number (IRN) for such invoice by uploading specified particulars in FORM GST INV-01 on the Common GST Electronic Portal, within 30 days from the date of such invoice, failing which the same shall not be treated as an invoice.

What is Dynamic QR Code?

A dynamic QR code is unique to each invoice generated and expires once the payment is made, unlike a static QR code capable of accepting multiple payments and does not have a fixed amount assigned. The main aim of generating dynamic QR codes for B2C e-invoices is to encourage digital payments using any UPI

[12][6^th Proviso to Rule 46

Government may, by notification, and

subject to such conditions and restrictions as mentioned therein,

specify that the tax invoice shall have Quick Response (QR) code]

Extract of Notification No. 14/2020-Central Tax dated 23-03-2020

RP shall have Dynamic Quick Response (QR) code on B2C invoice

whose aggregate turnover in a any preceding FY from 2017-18 onwards exceeds Rs.500 Cr.

Question & Answer

Extract of Notification No. 14/2020-Central Tax dated 23-03-2020

QR code requirement is not applicable to an invoice issued by following supplier

a) an insurer or a banking company or a financial institution, including a non-banking financial company [rules 54(2)];

b) a goods transport agency supplying services in relation to transportation of goods by road in a goods carriage [rules 54(3)];

c) supplying passenger transportation service [rules 54(4)];

d) supplying services by way of admission to exhibition of cinematograph in films in multiplex screens [rules 54(4A)];

e) OAIDR supplies by RP referred to in section 14 of the IGST Act, 2017.

Question & Answer

Circular No. 146/2/2021-GST, dated 23-02-2021 clarifies that

1.

Since e-invoices are required for supplies made by an exporter to an unregistered person vide Notification no. 13/2020-Central Tax, dated 21st March, 2020 treating them as Business to Business (B2B) supplies, 

Hence Notification no. 14/2020-Central Tax dated 23-03-2020 will not be applicable to them.

Extract of Circular No. 146/2/2021-GST, dated 23-02-2021 

2.

What parameters/ details are required to be captured in the Quick Response (QR) Code?

Dynamic QR Code contain the following information: -

i. Supplier GSTIN number

ii. Supplier UPI ID

iii. Payee’s Bank A/C number and IFSC

iv. Invoice number & invoice date,

v. Total Invoice Value and

vi. GST amount along with breakup i.e. CGST, SGST, IGST, CESS, etc.

Further, Dynamic QR Code should be such that it can be scanned to make a digital payment.

Extract of Circular No. 146/2/2021-GST, dated 23-02-2021 

3.

Customer opts to make payment without using Dynamic QR Code and the supplier provides a cross reference of the payment on the invoice

If a supplier provides/ displays Dynamic QR Code, but the customer opts to make payment without using Dynamic QR Code, then will the cross reference of such payment, made without use of Dynamic QR Code, on the invoice, be considered as compliance of DQR Code on the invoice?

Clarification

If the supplier has issued invoice having Dynamic QR Code for payment, the said invoice shall be deemed to have complied with Dynamic QR Code requirements. In cases where the supplier, has digitally displayed the Dynamic QR Code and the customer pays for the invoice: -

i. Using any mode like UPI, credit/ debit card or online banking or cash or combination of various modes of payment, with or without using Dynamic QR Code, and the supplier provides a cross reference of the payment (transaction id along with date, time and amount of payment, mode of payment like UPI, Credit card, Debit card, online banking etc.) on the invoice; or

ii. In cash, without using Dynamic QR Code and the supplier provides a cross reference of the amount paid in cash, along with date of such payment on the invoice;

The said invoice shall be deemed to have complied with the requirement of having Dynamic QR Code.

4.

In place of Dynamic QR code, Cross reference of payment may be provided in invoice

If the supplier makes available to customers an electronic mode of payment like UPI Collect, UPI Intent or similar other modes of payment, through mobile applications or computer based applications, where though Dynamic QR Code is not displayed, but the details of merchant as well as transaction are displayed/ captured otherwise, how can the requirement of Dynamic QR Code as per this notification be complied with?

Clarification

In such cases, if the cross reference of the payment made using such electronic modes of payment is made on the invoice, the invoice shall be deemed to comply with the requirement of Dynamic QR Code. However, if payment is made after generation / issuance of invoice, the supplier shall provide Dynamic QR Code on the invoice.

5.

In prepaid Invoice, Cross reference of payment may be provided in invoice

Is generation/ printing of Dynamic QR Code on B2C invoices mandatory for pre- paid invoices i.e. where payment has been made before issuance of the invoice?

Clarification

If cross reference of the payment received either through electronic mode or through cash or combination thereof is made on the invoice, then the invoice would be deemed to have complied with the requirement of Dynamic QR Code.

In cases other than pre-paid supply i.e. where payment is made after generation / issuance of invoice, the supplier shall provide Dynamic QR Code on the invoice.

Extract of Circular No. 146/2/2021-GST, dated 23-02-2021 

6.

Once the ECO or the online application has complied with the Dynamic QR Code requirements, will the suppliers using such e-commerce portal or application for supplies still be required to comply with the requirement of Dynamic QR Code?

Clarification

The provisions of the notification shall apply to each supplier/RP separately, if such person is liable to issue invoices with Dynamic QR Code for B2C supplies as per the said notification.

In case, the supplier is making supply through the ECO, and the said supplier gives cross references of the payment received in respect of the said supply on the invoice, then such invoices would be deemed to have complied with the requirements of Dynamic QR Code. In cases other than pre-paid supply i.e. where payment is made after generation / issuance of invoice, the supplier shall provide Dynamic QR Code on the invoice.

Extracts of Circular No. 156/12/2021 - GST dated 21-06-2021

1.

Whether Dynamic QR Code is to be provided on an invoice, issued to a person, who has obtained a UIN u/s 25(9)?

Clarification

Any person, who has obtained a UIN u/s 25(9), is not a “registered person” as per the definition of registered person u/s 2(94).

Therefore, any invoice, issued to such person having a UIN, shall be considered as invoice issued for a B2C supply and shall be required to comply with the requirement of Dynamic QR Code

Para 4 of Circular No. 156/12/2021 - GST dated 21-06-2021 as amended by Circular No. 165/21/2021 - GST dated 17-11-2021

4

In cases, where receiver of services is located outside India, and payment is being received by the supplier of services ,through RBI approved modes of payment, but as per provisions of the IGST Act 2017, the place of supply of such services is in India, then such supply of services is not considered as export of services as per the IGST Act 2017; whether in such cases, the Dynamic QR Code is required on the invoice issued, for such supply of services, to such recipient located outside India?

No. Wherever an invoice is issued to a recipient located outside India, for supply of services, for which the place of supply is in India, as per IGST Act 2017, and the payment is received by the supplier, in convertible foreign exchange or in Indian Rupees wherever permitted by the RBI, such invoice may be issued without having a Dynamic QR Code, as such dynamic QR code cannot be used by the recipient located outside India for making payment to the supplier."

Extracts of Circular No. 156/12/2021 - GST dated 21-06-2021

2.

Separate details of bank account and IFSC may not be provided in the Dynamic QR Code along with UPI ID

UPI ID is linked to the bank account of the payee/ person collecting money. Whether bank account and IFSC details also need to be provided separately in the Dynamic QR Code along with UPI ID?

Clarification

Given that UPI ID is linked to a specific bank account of the payee/ person collecting money, separate details of bank account and IFSC may not be provided in the Dynamic QR Code.

3.

UPI ID of authorised person on behalf of supplier may also be provided in invoice

In cases where the payment is collected by some person other than the supplier (ECO or any other person authorized by the supplier on his/ her behalf), whether in such cases, in place of UPI ID of the supplier, the UPI ID of such person, who is authorized to collect the payment on behalf of the supplier, may be provided?

Clarification

Yes. In such cases where the payment is collected by some person, authorized by the supplier on his/ her behalf, the UPI ID of such person may be provided in the Dynamic QR Code, instead of UPI ID of the supplier.

5.

Order ID/ reference no. may be provided in the dynamic QR code instead of invoice no., where invoice is generated after payment received

In some instances of retail sales over the counter, the payment from the customer in received on the payment counter by displaying dynamic QR code on digital display, whereas the invoice, along with invoice number, is generated on the processing system being used by supplier/ merchant after receiving the payment. In such cases, it may not be possible for the merchant/ supplier to provide details of invoice number in the dynamic QR code displayed to the customer on payment counter. However, each transaction i.e. receipt of payment from a customer is having a unique Order ID/ sales reference number, which is linked with the invoice for the said transaction. Whether in such cases, the order ID/ reference number of such transaction can be provided in the dynamic QR code displayed digitally, instead of invoice number.

Clarification

In such cases, where the invoice number is not available at the time of digital display of dynamic QR code in case of over the counter sales and the invoice number and invoices are generated after receipt of payment, the unique order ID/ unique sales reference number, which is uniquely linked to the invoice issued for the said transaction, may be provided in the Dynamic QR Code for digital display, as long as the details of such unique order ID/ sales reference number linkage with the invoice are available on the processing system of the merchant/ supplier and the cross reference of such payment along with unique order ID/ sales reference number are also provided on the invoice.

6.

Dynamic QR code may provide only balance amount, if part-payment has already been received in advance for any supply

When part-payment has already been received by the merchant/ supplier, either in advance or by adjustment (e.g. using a voucher, discount coupon etc), before the dynamic QR Code is generated, what amount should be provided in the Dynamic QR Code for “invoice value”?

Clarification

The purpose of dynamic QR Code is to enable the recipient/ customer to scan and pay the amount to be paid to the merchant/ supplier in respect of the said supply. When the part-payment for any supply has already been received from the customer/ recipient, in form of either advance or adjustment through voucher/ discount coupon etc., then the dynamic QR code may provide only the remaining amount payable by the customer/ recipient against “invoice value”.

The details of total invoice value, along with details/ cross reference of the part payment/ advance/ adjustment done, and the remaining amount to be paid, should be provided on the invoice.

Section 31(3)(a) read with Rule 53(2)

Notwithstanding anything contained in sub-sections (1) and (2)

RP who has been granted registration

wef a date earlier than the date of issuance of RC,

may issue a revised tax invoices in respect of taxable supplies against the invoice already issued

starting from the effective date of registration till the date of issuance of RC;

within one month from the date of issuance of RC

Ex

X Ltd commenced business on 01-04-2021 in Delhi. Its turnover exceeded threshold limit on 3^rd Sep. It applied for registration on 29^th Sep and was granted registration certificate on 5^th Oct.

Since X Ltd applied for registration within 30 days of becoming liable to registration. Registration granted becomes effective from 3^rd Sep.

X Ltd may issue revised invoice for the period 3^rd Sep to 5^th Oct on or before 5^th Nov.

Question & Answer

1^st Proviso to Rule 53(2)

RP may issue a consolidated revised tax invoice in respect of all taxable supplies made to a recipient who is not registered under the Act during such period:

Question & Answer

2^nd Proviso to Rule 53(2)

In case of inter-State supplies, where the value of a supply < Rs.2.50 lacs,

a consolidated revised invoice may be issued separately in respect of all the recipients located in a State, who are not registered under the Act.

Question & Answer

Rule 53(1)

A revised tax invoice shall contain the following particulars, namely:-

(a) the word “Revised Invoice”, wherever applicable, indicated prominently;

(b) name, address and GSTIN of the supplier;

^[13][(c)***]

(d) a consecutive serial no. not exceeding 16 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 FY;

(e) date of issue of the document;

(f) name, address and GSTIN or UIN, if registered, of the recipient;

(g) 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;

(h) serial number and date of the corresponding tax invoice or, bill of supply;

^[14][(i)***]

[(j) Signature or digital signature of the supplier or his authorised representative.

Question & Answer

Explanation to Section 31

For this section, “tax invoice” shall include any revised invoice issued by the supplier in respect of a supply made earlier.

Section 31(3)(b) & 4^th Proviso to Rule 46

a RP [15][other than the supplier providing services by way of admission to exhibition of cinematograph films in multiplex screens,]

may not issue a tax invoice subject to the following conditions, namely,-

(a) if the value of supplies < Rs.200 and

(b) recipient is not a registered person; and

(c) 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.

Thus, small taxpayers, like small retailers, doing a large number of small
transactions for upto a value of Rs.200 per transaction to unregistered customers
need not issue invoice for every such transaction.

They can issue one consolidated invoice at the end of each day for all transactions done during the day. However, they need to issue an invoice when the customer demands.

However, this option is not available to a supplier engaged in making supply of services by way of admission to exhibition of cinematograph films in multiplex screens.

Question & Answer

Section 31(3)(c)

a RP

supplying exempted goods or services or both or

paying tax u/s 10 [Composition Levy]

shall issue, instead of a tax invoice, a bill of supply

containing such particulars and in such manner as may be prescribed:

Question & Answer

Proviso to Section 31(3)(c)

RP may not issue a bill of supply if the value of supplies < Rs.200

subject to such conditions and in such manner as may be prescribed;

Rule 49

A bill of supply shall contain the following details, namely,-

(a) name, address and GSTIN of the supplier;

(b) a consecutive serial no. 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 FY;

(c) date of its issue;

(d) name, address and GSTIN or UIN, if registered, of the recipient;

(e) HSN Code for goods or services;

(f) description of goods or services or both;

(g) value of supply of goods or services or both taking into account discount or abatement, if any; and

(h) signature or digital signature of the supplier or his authorised representative:

Question & Answer

1^st Proviso to Rule 49

Proviso to rule 46 shall, mutatis mutandis, apply to the bill of supply issued under this rule

2^nd Proviso to Rule 49

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.

[16][Rule 46A

Notwithstanding anything contained in rule 46 or 49 or 54,

where a RP is supplying taxable as well as exempted goods or services or both

to an unregistered person,

a single “invoice-cum-bill of supply” may be issued for all such supplies.”

[17][Provided that the said single “invoice-cum-bill of supply” shall contain the particulars as specified u/r 46 or 54 and 49.]

Question & Answer

Section 31(3)(d)

a RP shall, on receipt of advance payment with respect to any supplies,

issue a receipt voucher or any other document, containing such particulars as may be prescribed, evidencing receipt of such payment;

Rule 50

A receipt voucher shall contain the following particulars, namely,-

(a) name, address and GSTIN of the supplier;

(b) a consecutive serial no. not exceeding 16 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;

(c) date of its issue;

(d) name, address and GSTIN or UIN, if registered, of the recipient;

(e) description of goods or services;

(f) amount of advance taken;

(g) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);

(h) amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory tax or cess);

(i) 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;

(j) whether the tax is payable on reverse charge basis; and

(k) signature or digital signature of the supplier or his authorised representative:

Provided that where at the time of receipt of advance,-

(i) the rate of tax is not determinable, the tax shall be paid at the rate of eighteen per cent.;

(ii) the nature of supply is not determinable, the same shall be treated as inter-State supply.

Question & Answer

Section 31(3)(e)

where, on receipt of advance payment with respect to any supplies

the RP issues a receipt voucher, but subsequently no supply is made and no tax invoice is issued in pursuance thereof,

the said RP may issue to the person who had made the payment, a refund voucher against such payment

Question & Answer

Rule 51

A refund voucher shall contain the following particulars, namely:-

(a) name, address and GSTIN of the supplier;

(b) 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;

(c) date of its issue;

(d) name, address and GSTIN or UIN, if registered, of the recipient;

(e) number and date of receipt voucher issued u/r 50;

(f) description of goods or services in respect of which refund is made;

(g) amount of refund made;

(h) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);

(i) amount of tax paid in respect of such goods or services (central tax, State tax, integrated tax, Union territory tax or cess);

(j) whether the tax is payable on reverse charge basis; and

(k) signature or digital signature of the supplier or his authorised representative.

Section 31(3)(f) read with Rule 47A

a RP who is liable to pay tax u/s 9(3) or (4) [RCM]

shall issue an invoice in respect of goods or services received by him

[18][, within the period as may be prescribed,]

from the supplier who is not registered on the date of receipt of goods or services;

Invoice to be issued by recipient if he is liable to pay tax u/s section 9(3)/(4) and receives supplies from an unregistered person

Question & Answer

[19][Rule 47A

Notwithstanding anything contained in rule 47, where an invoice referred to in rule 46 is required to be issued u/s 31(3)(f) by a registered person

he shall issue the said invoice within 30 days from the date of receipt of the said goods or services, or both.

2^nd Proviso to Rule 46

a RP may issue a consolidated invoice at the end of a month for supplies covered u/s 9(4)

the aggregate value of such supplies exceeds Rs.5,000 in a day from any or all the suppliers:

Section 31(3)(g)

a RP who is liable to pay tax u/s 9(3) or (4) [RCM]

shall issue a payment voucher at the time of making payment to the supplier.

Rule 52

Payment voucher shall contain the following particulars, namely:-

(a) name, address and GSTIN of the supplier if registered;

(b) 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 FY;

(c) date of its issue;

(d) name, address and GSTIN of the recipient;

(e) description of goods or services;

(f) amount paid;

(g) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);

(h) amount of tax payable in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory tax or cess);

(i) 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; and

(j) signature or digital signature of the supplier or his authorised representative.

3^rd Proviso to Rule 49

signature or digital signature of the supplier or his authorised representative shall not be required in the case of issuance of an electronic invoice in accordance with the provisions of the Information Technology Act, 2000 (21 of 2000)

[20][5^th Proviso to Rule 46

signature or digital signature of the supplier or his authorised representative shall not be required in the case of issuance of an electronic invoice in accordance with the provisions of the Information Technology Act, 2000 (21 of 2000)]

[21][Proviso to Section 31(2)

Government may, by notification,—

(a) specify the categories of services or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed;

(b) subject to the condition mentioned therein, specify the categories of services in respect of which—

(i) any other document issued in relation to the supply shall be deemed to be a tax invoice; or

(ii) tax invoice may not be issued.]

Rule 54(1)

An ISD invoice or, CN issued by an Input Service Distributor shall contain the following details:-

(a) name, address and GSTIN of the Input Service Distributor;

(b) 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-“-”, “/” respectively, and any combination thereof, unique for a FY;

(c) date of its issue;

(d) name, address and GSTIN of the recipient to whom the credit is distributed;

(e) amount of the credit distributed; and

(f) signature or digital signature of the Input Service Distributor or his authorised representative:

Provided that where the ISD is an office of a banking company or a financial institution, including a NBFC, 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.

[22][Rule 54(1A)

A RP, having the same PAN and State code as an ISD, may issue an invoice or, CN/DN

to transfer the credit of common input services to the ISD, which shall contain the following details:-

(i) name, address and GSTIN of the RP having the same PAN and same State code as the ISD;

(ii) 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 FY;

(iii) date of its issue;

(iv) GSTIN of supplier of common service and original invoice number whose credit is sought to be transferred to the ISD;

(v) name, address and GSTIN of the ISD;

(vi) taxable value, rate and amount of the credit to be transferred; and

(vii) Signature or digital signature of the registered person or his authorised representative.

(b) The taxable value in the invoice issued under clause (a) shall be the same as the value of the common services.]

Rule 54(2)

If supplier of taxable service is an insurer or a banking company or a FI, including a NBFC,

the said supplier may issue a consolidated tax invoice or any other document in lieu thereof, by whatever name called [23][for the supply of services made during a month at the end of the month],

whether issued or made available, physically or electronically whether or not serially numbered, and whether or not containing the address of the recipient of taxable service but containing other information as mentioned under rule 46.

[24][Provided that the signature or digital signature of the supplier or his authorised representative shall not be required in the case of issuance of a consolidated tax invoice or any other document in lieu thereof in accordance with the provisions of the Information Technology Act, 2000 (21 of 2000)]

Rule 54(5)

The provisions of sub-rule (2) or (4) shall apply, mutatis mutandis, to the documents issued u/r 49 or 50 or 51 or 52 or 53.

Question & Answer

Rule 54(3)

If supplier of taxable service is a goods transport agency

supplying services in relation to transportation of goods by road in a goods carriage,

the said supplier 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 the consigner 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 consigner, consignee or goods transport agency, and also

containing other information as mentioned u/r 46.

Rule 54(4)

If supplier of taxable service is supplying passenger transportation service,

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 of service but containing other information as mentioned u/r 46.

[25][Provided that the signature or digital signature of the supplier or his authorised representative shall not be required in the case of issuance of ticket in accordance with the provisions of the Information Technology Act, 2000 (21 of 2000).

Rule 54(5)

The provisions of sub-rule (2) or (4) shall apply, mutatis mutandis, to the documents issued u/r 49 or 50 or 51 or 52 or 53.

[26][Rule 54(4A)

 A RP supplying services by way of admission to exhibition of cinematograph films in multiplex screens shall be required to issue an electronic ticket and the said electronic ticket shall be deemed to be a tax invoice for all purposes of the Act, even if such ticket does not contain the details of the recipient of service but contains the other information as mentioned u/r 46:

Provided that the supplier of such service in a screen other than multiplex screens may, at his option, follow the above procedure.]

Question & Answer

Rule 55 specifies the cases where at the time of removal of goods, goods may be removed on delivery challan and invoice may be issued after delivery.

Rule 55(1)

For following purpose, consigner may issue a delivery challan, in lieu of invoice at the time of removal of goods for transportation

(a) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known,

(b) transportation of goods for job work,

(c) transportation of goods for reasons other than by way of supply, or

(d) such other supplies as may be notified by the Board,

Question & Answer

Rule 55(1)

Delivery Challan shall be serially numbered not exceeding sixteen characters, in one or multiple series, containing the following details, namely:-

(i) date and number of the delivery challan;

(ii) name, address and GSTIN of the consigner, if registered;

(iii) name, address and GSTIN or UIN of the consignee, if registered;

(iv) HSN code and description of goods;

(v) quantity (provisional, where the exact quantity being supplied is not known);

(vi) taxable value;

(vii) tax rate and tax amount –central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is for supply to the consignee;

(viii) place of supply, in case of inter-State movement; and

(ix) signature.

Rule 55(2)

The delivery challan shall be prepared in triplicate, in case of supply of goods, in the following manner, namely:–

(a) the original copy being marked as ORIGINAL FOR CONSIGNEE;

(b) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and

(c) the triplicate copy being marked as TRIPLICATE FOR CONSIGNER.

Rule 55(3)

Where goods are being transported on a delivery challan in lieu of invoice, the same shall be declared as specified in rule 138.

Rule 55(4)

Where the goods being transported are for supply to the recipient but the tax invoice could not be issued at the time of removal of goods for the purpose of supply,

the supplier shall issue a tax invoice after delivery of goods.

Rule 55(5)

Where the goods are being transported in a semi knocked down or completely knocked down condition [27][or in batches or lots]  –

(a) supplier shall issue the complete invoice before dispatch of the first consignment;

(b) supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;

(c) each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and

(d) the original copy of the invoice shall be sent along with the last consignment.

Circular No. 10/10/2017 - GST dated 18-10-2017

3.

Goods which are taken for supply on approval basis can be moved from the place of business of the registered supplier to another place within the same State or to a place outside the State on a delivery challan along with the e-way bill wherever applicable and

the invoice may be issued at the time of delivery of goods.

For this purpose, the person carrying the goods for such supply can carry the invoice book with him so that he can issue the invoice once the supply is fructified.

4.

Interstate Supply

where the supplier carries goods from one State to another and supplies them in a different State, will be inter-state supplies.

5.

Clarification would be applicable to all goods supplied under similar situations.

Circular No. 22/22/2017 - GST dated 21-12-2017

3.

Art work for supply on approval basis can be moved from the place of business of the registered person (artist) to another place within the same State or to a place outside the State on a delivery challan along with the eway bill wherever applicable and the invoice may be issued at the time of actual supply of art work.

4.

Supplies of the art work from one State to another State will be inter-State supplies.

5.

Supply by artists through galleries

In case of supply by artists through galleries, there is no consideration flowing from the gallery to the artist when the art works are sent to the gallery for exhibition and therefore, the same is not a supply. It is only when the buyer selects a particular art work displayed at the gallery, that the actual supply takes place and applicable GST would be payable at the time of such supply.