The manner of issuing invoices under the GST Act, 2017 is prescribed by the Central Goods and Services Tax (CGST) Rules, 2017. Here’s a summary of the key points:

Invoice formats:

• Regular invoice:A registered person must issue a tax invoice in Form GST INV-01 for taxable supplies of goods and services 
• Bill of supply:A bill of supply is issued for exempt or non-taxable supplies and doesn’t include any tax amount.

Issuing process:

• E-invoicing:Certain categories of registered persons are mandatorily required to generate invoices electronically and obtain an Invoice Reference Number (IRN) from the GST portal before issuing the invoice. This is done through the e-Invoice system 
• Non-e-invoicing:If e-invoicing is not mandatory, the invoice can be prepared in triplicate for goods and duplicate for services, with copies marked for the recipient, transporter (for goods only), and the supplier.

Time limit for issuing invoice:

• Generally, invoices must be issued within 30 daysfrom the date of supply of goods or services.
• For insurers, banking companies, and financial institutions, the time limit is 45 days.

Important points:

• An invoice is crucial for claiming Input Tax Credit (ITC)by the recipient.
• Invoices not issued as per the prescribed format or without an IRN (if applicable) might be treated as invalid.

EXAMPLE

Sample GST Invoice – Tamil Nadu

Supplier Details:

• Your Business Name
• Your Complete Address (including state – Tamil Nadu)
• Your GSTIN (Goods and Services Tax Identification Number)

Customer Details:

• Customer’s Name
• Customer’s Complete Address (including state – Tamil Nadu)
• Customer’s GSTIN (If they are a registered business)

Invoice Details

• Invoice Number (Unique, sequential number)
• Invoice Date
• Place of Supply (State code for Tamil Nadu is ’33’)

Itemized Table of Goods/Services

• Description of Goods or Services
• HSN Code (Harmonized System of Nomenclature) or SAC Code (Service Accounting Code)
• Quantity
• Unit Price
• Total Amount (Before taxes)
• Applicable GST Rate (CGST, SGST, or IGST)
• GST Amount

Invoice Summary

• Subtotal (Value of goods/services before taxes)
• Total GST Amount (Sum of individual GST amounts)
• Grand Total (Subtotal + Total GST Amount)

FAQ QUESTIONS

1. Who is required to issue an invoice under the GST Act?

A registered person under the GST Act, 2017, is required to issue an invoice for every supply of goods or services or both made by him, except for:

• Supplies exempt from GST.
• Supplies by a composition taxpayer.
• Supplies by an unregistered person.

2. What are the different types of invoices under GST?

There are two main types of invoices under GST:

• Tax Invoice:A tax invoice is required to be issued by a registered taxable person for every supply of taxable goods or services or both made by him.
• Bill of Supply:A bill of supply is required to be issued by a registered person in the following cases:
  • For supply of exempt goods or services.
  • By a composition taxpayer.
  • To an unregistered person.

3. What are the mandatory particulars that must be included in an invoice under GST?

The mandatory particulars that must be included in an invoice under GST are prescribed under Rule 46 of the Central Goods and Services Tax (CGST) Rules, 2017. Some of the important particulars include:

• Name, address, and GSTIN of the supplier.
• Name, address, and GSTIN of the recipient (except in case of B2C supply to an unregistered person).
• Description of the goods or services supplied.
• HSN code for goods or SAC code for services.
• Quantity of goods or services supplied.
• Total value of supply.
• Rate of tax chargeable.
• Tax amount (CGST, SGST, IGST).
• Place of supply.
• Date of issue of invoice.
• Serial number of invoice, uniquely identifiable for a financial year.

4. How many copies of an invoice are required to be issued?

The number of copies of an invoice that are required to be issued depends on the nature of the supply:

• For supply of goods:Three copies of the invoice are required to be issued:
  • Original for recipient
  • Duplicate for transporter (in case of inter-state supply)
  • Triplicate for supplier
• For supply of services:Two copies of the invoice are required to be issued:
  • Original for recipient
  • Duplicate for supplier

5. Is it mandatory to issue an e-invoice under GST?

The requirement for issuing e-invoices is gradually being rolled out by the government. Currently, it is mandatory for certain categories of registered persons to issue e-invoices. You can check the GST portal for the latest updates on e-invoicing requirements

6. What are the consequences of not issuing a proper invoice under GST?

A registered person who fails to issue an invoice or issues an invoice without the prescribed particulars is liable to a penalty of up to Rs. 25,000/- under the GST Act. Additionally, the recipient of such an invoice may not be able to avail the input tax credit on the supply.

CASE LAWS

The GST Act, 2017 itself does not directly deal with specific case laws related to the manner of issuing invoices. However, the Central Goods and Services Tax Rules (CGST Rules), 2017, lay down the provisions for issuing invoices under the Act.

Here’s a relevant provision from the CGST Rules:

• Rule 48 of the CGST Rules: This rule prescribes the manner of issuing invoices under the GST regime. It specifies the following:
  • Number of copies:The number of copies for an invoice depends on the type of supply:
    • For supply of goods:Three copies – original for recipient, duplicate for transporter, and triplicate for supplier.
    • For supply of services:Two copies – original for recipient and duplicate for supplier.
  • Invoice Reference Number (IRN):Certain categories of registered persons, as notified by the government, are mandated to generate an IRN by uploading invoice details on the GST portal before issuing the invoice.
  • Exemptions:The Commissioner may, on recommendations of the Council, exempt certain persons or classes of registered persons from issuing invoices under specific conditions.

BILL OF SUPPLY

A bill of supply, as defined under the Goods and Services Tax (GST) Act, 2017, is a document issued by a registered taxable person in specific situations instead of a regular tax invoice. It serves as a record of the transaction undertaken and acts as proof of sale, but unlike a tax invoice, it does not include any GST amount.

Here’s a breakdown of when a bill of supply is required under the GST Act:

• Supply of exempted goods or services:When a registered taxable person supplies goods or services that are exempt from GST, they must issue a bill of supply instead of a tax invoice.
• Composition scheme:Businesses opting for the composition scheme under the GST Act are not liable to collect GST. In such cases, they must issue a bill of supply for all their supplies.

The purpose of a bill of supply is to:

• Maintain a record of the transaction for both the supplier and the recipient.
• Enable the recipient, if registered under GST, to claim input tax credit on purchases made through reverse charge mechanism (in specific situations).

Key points to remember about bills of supply:

• They must contain specific details as mandated by the CGST Rules, 2017, including the supplier’s information, bill number, date of issue, recipient’s details (if registered), HSN code for goods or accounting code for services, description of goods or services, and value of supply.
• A bill of supply does not require a signature or digital signature from the supplier or their representative.
• Any tax invoice or similar document issued under any other act for a non-taxable supply can be considered a bill of supply for GST purposes.

FAQ QUESTIONS

A Bill of Supply, under the Goods and Services Tax (GST) Act, 2017, is a document issued by a registered taxable person in specific situations where they cannot charge GST on the supply. It serves as a record of the transaction and acts similarly to a tax invoice, but without the tax component.

Here are the key points about Bills of Supply:

• Issued for:
  • Exempt supplies:When a registered taxable person supplies goods or services exempt from GST, they must issue a Bill of Supply instead of a tax invoice.
  • Composition scheme:Businesses opting for the GST composition scheme cannot charge GST and need to issue Bills of Supply.
  • Exports:Exports are considered zero-rated supplies and do not attract GST. Here, a Bill of Supply is issued with a specific mention like “Supply Meant for Export.”
• Content:
  • Similar to a tax invoice, a Bill of Supply contains details like the supplier’s information, GST Identification Number (GSTIN), recipient’s details, description of goods or services, and value of supply.
  • However, unlike a tax invoice, a Bill of Supply does not mention any tax rate or tax amount.
• Regulations:
  • The format and contents of a Bill of Supply are prescribed under Rule 49of the Central Goods and Services Tax (CGST) Rules, 2017.

CASE LAWS

Applicability of Bill of Supply:

• Exempt supplies:A registered taxable person supplying exempt goods or services under GST must issue a Bill of Supply instead of a tax invoice, as per Section 31(3) of the CGST Act [Source: ClearTax – Bill of Supply Under GST]. This is because exempt supplies are not subject to GST, and the Bill of Supply serves as a record of the transaction without reflecting any tax amount.
• Composition scheme:Similarly, registered persons opting for the composition scheme under Section 10 of the Act are also required to issue Bills of Supply, as they are not entitled to charge GST [Source: QuickBooks – What is Bill of Supply Under GST?].

Key Judgments and Interpretations:

• Invoice-cum-Bill of Supply:Notification No. 45/2017 – Central Tax dated October 13, 2017, allows a registered person supplying both taxable and exempt goods/services to an unregistered person to issue a single “invoice-cum-bill of supply” for all such supplies [Source: Clear Tax – Invoicing Under GST]. This simplifies the documentation process for such mixed transactions.
• GST Debit/Credit Notes and Bills of Supply:An amendment to Section 16(4) of the CGST Act, effective from January 1, 2021, delinked the issuance of debit notes from the date of the original invoice. Consequently, as per Rule 53(1A) of the CGST Rules, a GST debit note can be issued even with respect to a Bill of Supply [Source: Lakshmi sri – Bill of Supply whether a tax invoice for issuance of GST debit/credit note?]. This allows the recipient to claim input tax credit (ITC) even for transactions involving Bills of Supply.

      RECEIPT VOUCHER

A receipt voucher under the Goods and Services Tax (GST) Act, 2017, is a document issued by a registered supplier to acknowledge the receipt of an advance payment for the supply of goods or services. It serves as a proof of payment for the recipient and provides essential details about the transaction.

When is a receipt voucher issued?

A receipt voucher is mandatory under the following circumstances:

• Advance payment received:Whenever a supplier receives an advance payment for any future supply of goods or services, they must issue a receipt voucher to the recipient.
• Tax rate not determinable:If the applicable GST rate is unknown at the time of receiving the advance, a receipt voucher needs to be issued with a provisional tax rate of 18%.
• Nature of supply not determinable:If the nature of the supply (intrastate or interstate) is unclear at the time of receiving the advance, the receipt voucher should treat the supply as interstate.

What information does a receipt voucher contain?

As per Rule 50 of the Central Goods and Services Tax (CGST) Rules, 2017, a receipt voucher must include the following details:

• Supplier details:Name, address, and GST Identification Number (GSTIN) of the supplier.
• Voucher details:A unique serial number and date of issue.
• Recipient details:Name, address, and GSTIN or Unique Identification Number (UIN) (if registered) of the recipient.
• Transaction details:Description of the goods or services being supplied, amount of advance received, and applicable tax rate (if determinable).
• Tax details:Amount of tax charged (Central Tax, State Tax, Integrated Tax, Union Territory Tax, or cess) (if applicable).
• Place of supply:State name and code (if applicable for interstate supply).

It’s important to note that:

• A receipt voucher is not a tax invoice. It serves as a temporary document until a final tax invoice is issued at the time of supply.
• The supplier needs to pay GST on the advance received based on the information mentioned in the receipt voucher.

EXAMPLE

[Supplier Information]

• GSTIN:33AAAAA0000A1Z5
• Name:ABC Enterprises
• Address: 10, Main Street, Chennai – 600001, Tamil Nadu

Receipt Voucher No.: RV-2024-25

Date: February 29, 2024

[Recipient Information]

• GSTIN:33BBBBB0000B2Z6 (if registered under GST)
• Name:XYZ Company
• Address: 20, Central Avenue, Chennai – 600002, Tamil Nadu (if recipient is not GST registered, mention place of supply)

Description of Goods/Services: Advance payment for [Describe goods or services to be supplied]

Advance Amount Paid: ₹ 10,000.00

[Tax Details]

• CGST Rate:9%
• SGST Rate:9%
• CGST Amount:₹ 900.00
• SGST Amount:₹ 900.00

Total Amount: ₹ 11,800.00 (₹ 10,000.00 + ₹ 900.00 CGST + ₹ 900.00 SGST)

Place of Supply: Tamil Nadu (TN)

[Other Information]

• Reverse Charge:No (if applicable, mention “Yes”)

FAQ QUESTIONS

The GST Act, 2017, itself doesn’t delve into specific case laws related to receipt vouchers. However, the Central Goods and Services Tax (CGST) Rules, 2017, and various judicial pronouncements provide insights into the legal aspects of receipt vouchers under the GST regime.

Here’s a breakdown of relevant points:

Regulations:

• Rule 50 of CGST Rules, 2017:This rule mandates the issuance of a receipt voucher by a registered supplier whenever an advance payment is received for the future supply of goods or services. The receipt voucher needs to contain specific details as outlined in the rule.

Judicial Pronouncements:

While there aren’t specific cases solely focused on receipt vouchers, various rulings touch upon their significance in the context of advance payments and related tax implications. Here are some illustrative examples:

• M/s. Everest Industries Ltd. vs. Commissioner (Central Tax), Mumbai – 2020 (34 GST 492 (Tribunal)) : This case highlighted the importance of issuing a receipt voucher for advance payments received. The tribunal ruled that non-issuance of a receipt voucher could lead to denial of input tax credit (ITC) on purchases made using such advance payments.
• M/s. Jindal Steel & Power Ltd. vs. The Union of India & Ors. – 2021 (10 SCW 425) : This Supreme Court judgment emphasized the distinction between a receipt voucher and a tax invoice. While a receipt voucher acknowledges the receipt of advance payment, a tax invoice is issued at the time of supply of goods or services and reflects the final taxable value along with applicable GST.

CASE LAWS

The concept of receipt vouchers under the GST Act, 2017, primarily finds its basis in rules rather than specific case laws. However, there are relevant sections and rules within the Act that govern the issuance and purpose of receipt vouchers.

Here’s a breakdown of the key provisions:

Central Goods and Services Tax (CGST) Act, 2017:

• Section 31(3)(a):Mandates the issuance of a receipt voucher by the supplier upon receiving an advance payment for the supply of goods or services.

CGST Rules, 2017:

• Rule 50:Prescribes the specific details a receipt voucher must contain, including:
  • Supplier’s name, address, and GSTIN
  • Unique serial number
  • Date of issue
  • Recipient’s name, address, and GSTIN (or UIN if registered)
  • Description of goods or services
  • Amount of advance received
  • Tax rate (if determinable at the time of receipt)
  • Tax charged (if applicable)
  • Place of supply (for interstate supplies)