The time limit for issuing a tax invoice under the GST Act, 2017 depends on the nature of the supply:

• Supply of goods:The tax invoice must be issued before or at the time of supply of the goods [Source: Tax Invoice and other such instruments in GST, Central Board of Indirect Taxes and Customs].
• Supply of services:The tax invoice must be issued within 30 days from the date of supply of service. However, there’s an exception for insurers, banking companies, and financial institutions, including non-banking financial companies. For these entities, the time limit is extended to 45 days from the date of supply of service [Source: DRAFT GOODS AND SERVICES TAX – INVOICE RULES, 2017, GST Council].

EXAMPLE

Absolutely! Here’s information about the time limit for issuing a tax invoice under the GST Act of 2017 in India, along with some considerations when dealing with specific states:

General Time Limits Under GST:

• Goods:A tax invoice must be issued on or before the date the goods are removed for supply to the recipient.
• Services:A tax invoice must be issued within 30 days from the date the service was provided.
• Continuous Supply of Services:The rules vary based on whether a due date is ascertainable. See [https://old.cbic.gov.in/htdocs-cbec/gst/Tax_Invoice_and_other_new.pdf] for specific scenarios.

State-Specific Considerations:

While the GST Act sets a general framework, individual states within India might have slightly modified rules or additional requirements regarding tax invoice timelines. It’s always best practice to consult directly with the state tax authorities in the relevant state for the most precise guidance.

Important Notes:

• In any case, a tax invoice cannot be issued after the due date for filing the relevant GST Returns.
• There are separate timelines for other GST documents like credit notes and debit notes.

Example:

If a business in Tamil Nadu supplies furniture to a buyer on February 25th, 2024, the tax invoice must be generated on or before the date the furniture is removed from the business premises.

FAQ QUESTIONS

FAQ: Time Limit for Issuing Tax Invoices under GST Act 2017

Q: When do I need to issue a tax invoice under the GST Act, 2017?

A: You need to issue a tax invoice for every supply of goods or services exceeding ₹500, irrespective of whether the recipient is registered under GST or not.

Q: Is there a specific time limit for issuing a tax invoice?

A: Yes, the GST Act specifies different timelines for issuing tax invoices depending on the type of supply:

• For supply of goods:The invoice must be issued on or before the date of supply or within 30 days from the date of supply.
• For supply of services:The invoice must be issued before, at the time of, or within 30 days after the completion of the service.
• For continuous supply of services:
  • If the due date for payment is mentioned in the contract, the invoice needs to be issued on or beforethat date.
  • If there’s no specific due date in the contract, the invoice needs to be issued before or at the timeof receiving the payment.
  • If the payment is linked to an event, the invoice needs to be issued on or beforethe event’s completion date.

Q: What happens if I fail to issue a tax invoice within the prescribed time limit?

A: Although there is no specific penalty for delayed issuance of tax invoices, it can lead to:

• Disallowance of Input Tax Credit (ITC) claim by the recipient:The recipient of the supply (if registered under GST) cannot claim ITC on the tax charged if a valid tax invoice is not provided within the prescribed time limit.
• Interest and penalty:In certain cases, the tax authorities may levy interest and penalty for non-issuance of invoices.

CASE LAWS

The Central Goods and Services Tax (CGST) Act, 2017 itself doesn’t explicitly specify a time limit for issuing tax invoices. However, the CGST Rules, 2017 under the Act, specifically Rule 47, lays down the timeframes for issuing tax invoices:

• For supply of goods:There’s no specific time limit mentioned in the rules.
• For supply of services:Generally, the invoice needs to be issued within 30 days from the date of supply of service.
• Exceptions for specific sectors:
  • Insurers, banking companies, and financial institutions:They have 45 days from the date of supply to issue the invoice.

It’s important to note that these are the general guidelines, and specific situations might have different rules. It’s always advisable to consult a tax professional or refer to the latest official guidelines from the Central Board of Indirect Taxes and Customs (CBIC) for the most up-to-date information.