FAIRFIELD INSTITUTE OF

MANAGEMENT AND TECHNOLOGY

Tax Invoice

Goods and Services Tax (304)

SUBMITTED TO- SUBMITTED BY-

MR. JITENDER MUSKAN
Assistant Professor 04051488819
B.Com (Hons.)
VI Semester
 TABLE OF CONTENTS

S.NO. CONTENTS PAGE NO.

1 Topic- Tax Invoice 1

2 Table of Contents 2
3 Introduction 3
4 Objectives 4
5 About 5-11
6 Conclusion 12
7 Bibliography 13
 INTRODUCTION
An invoice is a commercial instrument issued by a seller to a buyer. It
identifies both the trading parties, and lists, describes, and quantifies
the items sold, shows the date of shipment and mode of transport,
prices and discounts, if any, and the delivery and payment terms. In
certain cases, (especially when it is signed by the seller or seller’s
agent), an invoice serves as a demand for payment and becomes a
document of title when paid in full.
 OBJECTIVES
• To know about the Tax Invoice.

• To develop further understanding of the theories and concepts

covered in the course.

• To develop a practice of learning new aspects of the subject.

• To develop a habit of research related to the subject.

 Tax Invoice

Under the GST regime, an “invoice” or “tax invoice” means the tax invoice
referred to in section 31 of the CGST Act, 2017. This section mandates the
issuance of an invoice or a bill of supply for every supply of goods or services. It
is not necessary that only a person supplying goods or services needs to issue an
invoice. The GST law mandates that any registered person buying goods or
services from an unregistered person needs to issue a payment voucher as well
as a tax invoice. The type of invoice to be issued depends upon the category of
registered person making the supply. For example, if a registered person is
making or receiving supplies (from unregistered persons), then a tax invoice
needs to be issued by such registered person. However, if a registered person is
dealing only in exempted supplies or is availing the composition scheme
(composition dealer), then such a registered person needs to issue a bill of
supply in lieu of invoice. The invoice should contain description, quantity and
value & such other prescribed particulars (in case of supply of goods), and the
description and value & such other prescribed particulars (in case of supply of
services). An invoice or a bill of supply need not be issued if the value of the
supply is less than Rs. 200/-, subject to specified conditions.

Importance of tax invoice under GST

Under GST, a tax invoice is an important document. It not only evidences the
supply of goods or services, but is also an essential document for the recipient
to avail Input Tax Credit (ITC). A registered person cannot avail Input Tax Credit
unless he is in possession of a tax invoice or a debit note.
GST is chargeable at the time of supply. Invoice is an important indicator of the
time of supply. Broadly speaking, the time of supply of goods or services is the
date of issuance of an invoice or receipt of payment, whichever is earlier.
Thus the importance of an invoice under GST cannot be over-emphasised.
Suffice it to say, the tax invoice is the primary document evidencing the supply
and vital for availing Input Tax Credit.

When should a tax invoice or a bill of supply be issued by a registered person

Goods
The time for issuing an invoice would depend on the nature of supply viz.
whether it is a supply of goods or services. A 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 there of to the recipient,
issue a tax invoice showing the description, quantity and value of goods, the tax
charged thereon and such other particulars as prescribed in the Invoice Rules.
The Government may, on the recommendations of the Council, 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.

Contents of invoice
There is no format prescribed for an invoice, however, Invoice rules makes it
mandatory for an invoice to have the following fields (only applicable field are
to be filled):

(a) Name, address and GSTIN of the supplier

(b) A consecutive serial number, in one or multiple series, containing alphabets
or numerals or special characters like hyphen or dash and slash symbolised as “-
” and “/” respectively, and any combination there of, unique for a financial year
(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, along with
the name of State and its code, if such recipient is un-registered and where the
value of taxable supply is fifty thousand rupees or more
(f) HSN code of goods or Accounting Code of Services
(g) Description of goods or services
(h) Quantity in case of goods and unit or Unique Quantity Code there of
(i) Total value of supply of goods or services or both
(j) Taxable value of supply of goods or services or both, taking into account the
discount or abatement, if any (k) Rate of tax (Central tax, State tax, Integrated
tax, union territory tax or cess)
(l) Amount of tax charged in respect of taxable goods or services (Central tax,
State tax, Integrated tax, union territory tax or cess)
(m) Place of supply along with the name of State, in case of a supply in the course
of inter-State trade or commerce
(n) Address of delivery where the same is different from the place of supply
(o) Whether the tax is payable on reverse charge basis
(p) Signature or digital signature of the supplier or his authorized representative

Revised Invoice
A registered person may, within one month from the date of issuance of
certificate of registration and in such manner as prescribed in the Invoice Rules,
issue a revised invoice against the invoice already issued during the period
beginning with the effective date of registration till the date of issuance of
certificate of registration to him. This provision is necessary, as a person who
becomes liable for registration has to apply for registration within 30 days of
becoming liable for registration. When such an application is made within the
time period and registration is granted, the effective date of registration is the
date on which the person became liable for registration. Thus there would be a
time lag between the date of grant of certificate of registration and the effective
date of registration. For supplies made by such person during this intervening
period, the law enables the issuance of a revised invoice, so that ITC can be
availed by the recipient on such supplies.

Invoice and payment voucher by a person liable to pay tax under reverse
charge
A registered person liable to pay tax under reverse charge (both for supplies on
which the tax is payable under reverse charge mechanism and supplies received
from unregistered persons) has to issue an invoice in respect of goods or service
or both received by him. Such a registered person in respect of such supplies
also has to issue a payment voucher at the time of making payment to the
supplier.

Invoice in case of continuous supply of goods

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, as the case may be, each such payment
is received.

Invoice in case of continuous supply of services

In case of continuous supply of services, where:
(a) The due date of payment is as certainable from the contract, the invoice shall
be issued on or before the due date of payment.
(b) The due date of payment is not as certainable from the contract, the invoice
shall be issued before or at the time when the supplier of service receives the
payment.
(c) The payment is linked to the completion of an event, the invoice shallbe
issued on or before the date of completion of that event.

Issue of invoice in case, where supply of service ceases under a contract before
the completion of supply
In a case where the supply of services ceases under a contract before the
completion of the supply, the 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.

Sale on approval basis

Where the goods beingsent 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, whichever is earlier.

Credit and Debit Notes

In cases where tax invoice has been issued for a supply and subsequently it is
found that the value or tax charged in that invoice is more than what is actually
payable/chargeable or where the recipient has returned the goods, the supplier
can issue a credit note to the recipient. A registered person who issues such a
credit note has to declare 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 financial year in which such supply was made or the
date of furnishing of the relevant annual return, whichever is earlier. The tax
liability of the registered person will be adjusted in accordance with the credit
note issued, however no reduction in output tax liability of the supplier shall be
permitted, if the incidence of tax and interest on such supply has been passed
on to any other person.
In cases where tax invoice has been issued for a supply and subsequently it is
found that the value or tax charged in that invoice is less than what is actually
payable/chargeable, the supplier can issue a debit note to the recipient.
Any registered person who issues a debit note in relation to a supply of goods
or services or both, shall declare the details of such debit note in the return for
the month during which such debit note has been issued and the tax liability
shall be adjusted in such manneras may be prescribed.
A revised tax invoice and credit or debit note has to contain the following
particulars:
(a) The word “Revised Invoice”,wherever applicable, indicated prominently
(b) Name, address and GSTIN of the supplier
(c) Nature of the document
(d) A consecutive serial number containing alphabets or numerals or special
characters like hyphen or dash and slash symbolised as “-” and “/”respectively,
and any combination thereof, unique for a financial year
(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, as the case may
be, bill of supply
(i) 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.
(j) Signature or digital signature of the supplier or his authorized representative.

Manner of issuing invoice

The invoice shall be prepared in triplicate, in case of supply of goods, in the
following manner:
(a) The original copy being marked as ORIGINAL FOR RECIPIENT
(b) The duplicate copy being marked as DUPLICATE FOR TRANSPORTER
(c) The triplicate copy being marked as TRIPLICATE FOR SUPPLIER

The invoice shall be prepared in duplicate, in case of supply of services, in the

following manner:
(a) The original copy being marked as ORIGINAL FOR RECIPIENT
(b) The duplicate copy being marked as DUPLICATE FOR SUPPLIER
The serial number of invoices issued during a tax period shall be furnished
electronically through the Common Portal in Form GSTR-1.

Tax invoice in Special Cases

An ISD invoice or, as the case may be, an ISD credit note 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 containing alphabets or numerals or special
characters like hyphen or dash and slash symbolised as , “-”, “/”, respectively,
and any combination thereof, unique for a financial year
(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
(f) Signature or digital signature of the Input Service Distributor or his authorized
representative

Tax Invoice in special cases

Where the Input Service Distributor is an 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 prescribed information.
Where the supplier of taxable service is an insurer or a banking company or a
financial institution, including a nonbanking financial company, the said supplier
shall issue a tax invoice or any other document in lieu thereof, by whatever
name called, whether or not serially numbered, and whether or not containing
the address of the recipient of taxable service but containing other information
as prescribed under rule 1 of Invoice Rules.
Where the 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 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 containing other
information as prescribed under rule 1 of Invoice Rules.
Where the 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 prescribed under
rule 1 of Invoice Rules.

Transportation of goods without an invoice

In the following cases it is permissible for the consignor to issue a delivery

challan in lieu of invoice at the time of removal of goods:

(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 (d) Such
other supplies as may be notified by the Board The delivery challan, serially
numbered not exceeding 16 characters, in one or multiple series, shall contain
the following details:

(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 (ix) Signature

The delivery challan shall be prepared in triplicate, in case of supply of goods, in

the following manner:
(a) The original copy being marked as ORIGINAL FOR CONSIGNEE (b) The
duplicate copy being marked as DUPLICATE FOR TRANSPORTER (c) The
triplicate copy being marked as TRIPLICATE FOR CONSIGNER
Where goods are being transported on a delivery challan in lieu of invoice, the
same shall be declared in FORM [WAYBILL].
Where the goods being transported are for the purpose of 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 the delivery
of goods.
Where the goods are being transported in a semi knocked down or completely
knocked down condition: (a) The supplier shall issue the complete invoice
before dispatch of the first consignment (b) The 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 (d) The original
copy of the invoice shall be sent along with the last consignment
 CONCLUSION

Tax invoice is an invoice issued for taxable supply of goods & services.
Tax invoice broadly contains details like description, quantity, value of
goods/service, tax charged thereon and other particulars as may be
prescribed. Tax invoice is a primary evidence for recipient to claim
input tax credit of goods & service.
 BIBLIOGRAPHY

1. BOOKS – Mehrotra H.C., Agrwal V.P. (2016) Indirect Taxes,

Sahitya Bhawan Publication.
Gupta K Atul, (4th Edition,2020), GST-Concept and Roadmap, l/e,
LexisNexis Publisher.
2. WEBSITE –
www.iocl.com
www.cleartax.com
www.freshbooks.com