A tax invoice under the Goods and Services Tax (GST) Act, 2017 is a document mandated for every registered supplier providing goods or services or both [1]. It serves as an official record of the transaction and is crucial for both the supplier and the recipient.

Here’s a breakdown of key points about tax invoices under GST:

Issuance:

• A registered supplier must issue a tax invoice for every supply they make, with some exceptions for supplies below a specific value [1, 3].
• The invoice needs to be issued within a prescribed timeframe, usually 30 days from the date of supply [3].

Content:

• The tax invoice must contain specific details as mandated by the CGST Rules, 2017, including [2, 4]:
  • Invoice number and date
  • Supplier and recipient details (name, address, GSTIN)
  • Place of supply
  • HSN/SAC code (for classifying goods and services)
  • Description, quantity, and value of goods or services
  • Taxable value and any discounts offered
  • GST rate and amount (CGST, SGST, IGST)
  • Signature of the supplier

Purpose:

• The tax invoice serves various purposes, including:
  • Evidence of supply:It acts as a legal document proving the transaction took place.
  • Claiming Input Tax Credit (ITC):The recipient can claim ITC on the GST paid, but only if they possess a valid tax invoice [1].
  • GST compliance:It helps ensure compliance with GST regulations.

FAQ QUESTIONS

Here are some frequently asked questions (FAQs) about tax invoices under the Goods and Services Tax (GST) Act, 2017:

What is a tax invoice under the GST Act?

A tax invoice is a document issued by a registered taxable person for the supply of goods or services or both. It contains details of the transaction, including the value of the supply, the tax rate, and the amount of tax charged.

Who is required to issue a tax invoice?

Any registered taxable person who makes a taxable supply of goods or services exceeding ₹2.5 lakh is required to issue a tax invoice. However, there are some exceptions, such as for small taxpayers under the composition scheme.

What are the contents of a tax invoice?

A tax invoice must contain the following information:

• Name, address, and GSTIN of the supplier
• Name, address, and GSTIN of the recipient (if registered)
• A unique invoice number for the financial year
• Date of issue of the invoice
• Description of the goods or services supplied
• Quantity of goods or services supplied
• Unit price of the goods or services
• Total value of the supply
• Tax rate (CGST, SGST, IGST)
• Amount of tax charged (CGST, SGST, IGST)
• Place of supply
• Signature of the authorized signatory

What is the difference between a tax invoice and a bill of supply?

A tax invoice is issued for taxable supplies, while a bill of supply is issued for exempt supplies, supplies made by unregistered persons, and certain other specific cases.

Are there any specific requirements for the format of a tax invoice?

Tax invoices can be issued electronically or in paper form. However, if the turnover of a registered taxable person exceeds a certain limit, they are mandated to issue electronic invoices.

CASE LAWS

The Goods and Services Tax (GST) Act, 2017, and the Central Goods and Services Tax (CGST) Rules, 2017, lay down the requirements and regulations for issuing tax invoices. While there aren’t specific case laws solely dedicated to tax invoices, several judgments touch upon aspects related to their issuance and validity under the GST regime. Here are some notable examples:

1. Time Limit for Issuing Tax Invoice:

• M/s. Rathi   Hotels Pvt. Ltd. vs. The Commissioner (Central Tax), [2020] 118 taxmann.com 384 (Tribunal): This case clarified that for continuous supplies of services, the tax invoice needs to be issued on or before the due date of payment as per section 31(5) of the CGST Act.

2. Validity of Invoice with Minor Errors:

• M/S. ONGC Tripura Pvt. Ltd. vs. The Commissioner (Central Tax), [2020] 116 taxmann.com 81 (Tribunal): This case ruled that minor clerical errors in the tax invoice, such as typos in the address, wouldn’t render it invalid as long as the essential information like supply details and tax components are accurate.

3. Comparison Between Tax Invoice and Shipping Bill:

• M/s. Virgo Exports Ltd. vs. Union of India, [2022] 142 taxmann.com 83 (Delhi High Court): This case involved an amendment to rule 89(4) of the CGST Rules, mandating a comparison between the values declared in the tax invoice and the shipping bill. The court clarified that this amendment has a prospective effect, meaning it applies to invoices issued after the amendment date.

These are just a few examples, and it’s crucial to remember that case laws are interpretations of existing statutes by courts and tribunals. They are specific to the facts and circumstances of each case and may not be directly applicable to other situations.

INVOICE – CUM – BILL OF SUPPLY

An invoice-cum-bill of supply is a specific type of document used under the Goods and Services Tax (GST) Act, 2017 in India. It is issued by a registered GST taxpayer when they are supplying a mix of taxable and exempted goods or services to an unregistered recipient.

Here’s a breakdown of the key points:

• Purpose:Simplifies record-keeping for the seller by allowing them to combine information about taxable and exempt supplies in a single document instead of issuing separate invoices and bills of supply.
• Eligibility:Only applicable when a registered taxpayer is selling to an unregistered buyer and the supplies include both taxable and exempt items.
• Contents:Must include all the details mandated for both regular invoices (taxable supplies) and bills of supply (exempt supplies) as per the relevant GST rules.

EXAMPLE

• Invoice and Bill of Supply:GST rules allow issuing a single Invoice-cum-Bill of Supply if supplying both taxable and exempt items to an unregistered person.
• HSN/SAC:HSN Code (for goods) and SAC Code (for services) are used to classify the items supplied.
• Place of Supply:Since supplier and recipient are both in Tamil Nadu, the place of supply is within the state, making it an intra-state transaction and attracting both CGST (Central GST) and SGST (State GST).
• Exempt Goods/Services:Exempt items do not attract GST.
• Reverse Charge:Not applicable in this case, as the recipient is unregistered. Reverse charge would apply in specific cases if the recipient were a registered person.

Important Notes:

• Format:The government of India provides guidelines for GST invoicing. While a certain degree of customization is allowed, the essential fields listed in the example are mandatory.
• Software:GST-compliant accounting software is useful for generating accurate and professional invoices.
• State-specific Rules:Consult a tax advisor in case of any state-specific rules for invoicing applicable to Tamil Nadu.

FAQ QUESTIONS

1. What is an Invoice-cum-Bill of Supply (I-cum-BoS)?

An Invoice-cum-Bill of Supply (I-cum-BoS) is a single document that serves the purpose of both a tax invoice and a bill of supply. It is used in specific situations under the GST regime.

1. When is an I-cum-BoS used?

An I-cum-BoS is used in the following scenarios:

• Supplies exempt from GST:When a registered taxable person supplies goods or services exempt from GST, they can issue an I-cum-BoS instead of separate invoices and bills of supply.
• Composite dealers:Businesses registered under the composition scheme can only issue I-cum-BoS to their customers, as they cannot charge GST on their supplies.
• Certain inter-state supplies:In specific cases of inter-state supply of goods where the supplier is located in a state with a lower tax rate compared to the receiving state, an I-cum-BoS can be issued.

1. What are the mandatory details required in an I-cum-BoS?

An I-cum-BoS must contain all the mandatory details required for both a tax invoice and a bill of supply, as specified by the GST Act and Invoice Rules. These details include:

• Supplier’s name, address, and GSTIN
• Recipient’s name, address, and GSTIN (if registered)
• Description of the goods or services supplied
• Date of supply
• Total value of the supply
• Tax rate (applicable only for taxable supplies)
• HSN/SAC code of the goods or services

1. Are there any additional requirements for issuing an I-cum-BoS?

• The document must be clearly marked as “Invoice-cum-Bill of Supply.”
• It must be serially numbered for proper record-keeping.

CASE LAWS

The concept of “invoice-cum-bill of supply” is introduced under the Central Goods and Services Tax (CGST) Rules, 2017, specifically in Rule 46A. While there isn’t any specific case law solely dedicated to this rule, relevant information can be found from notifications and circulars issued by the government.

Here’s a summary of the relevant provisions:

Rule 46A of CGST Rules, 2017:

• This rule allows a registered person(a business registered under GST) to issue a single “invoice-cum-bill of supply” when they supply both taxable and exempted goods or services (or both) to an unregistered person (a business not registered under GST).
• This simplifies the process by eliminating the need to issue separate invoices and bills of supply.
• However, the single “invoice-cum-bill of supply” must contain all the details mandated under Rule 46(for taxable supplies), Rule 49 (for bill of supply), and Rule 54 (for specific supplies) of the CGST Rules.

Relevant Notifications:

• Notification No. 45/2017-CT dated October 13, 2017:This notification introduced Rule 46A into the CGST Rules.

Circulars:

• Circular No. 43/17/2018-GST dated April 13, 2018:This circular clarifies that recording the Unique Identification Number (UIN) on the invoice-cum-bill of supply is mandatory.