Important Documents under GST- Tax Invoice, Debit and Credit Notes

Documents are tax Invoice, Credit Note, Debit Note or Supplementary Invoice, Bill of Supply, receipt voucher for receipt of advance, refund voucher for return of advance without supply. These documents represent the mode of transmitting tax from one stage of value chain to another and therefore are very critical in value added tax system as GST.
  • Details of Supplier- Name, address and GSTIN
  • Date of the invoice
  • Serial number of the invoice – Seriatim to be unique for each financial year and it can be based on alphabets and/or numbers
  • Details of the recipient- Name, address and GSTIN/ UID (if registered)
  • Address of delivery with state code
  • Details of the item supplied- HSN code of goods* or accounting code of service, description of the goods/services, quantity in case of goods
  • Total value of goods/services
  • Taxable value of the goods or services
  • Rate of tax and amount of tax having regard to CGST,SGST, IGST as may be applicable
  • Place of supply
  • Signature or digital signature
  • Where the document is raised for export, the invoice is required to bear an endorsement to the effect that “Supply meant for export on payment of IGST/under bond without payment of IGST
  • Export invoice is also required to display name of the country to which goods or services are exported and also the details of application made for removal of goods
  • In the event of supply of goods and/or services which are notified for payment of tax on reverse charge basis, the tax invoice shall be issued without tax and the fact that the recipient is required to remit under reverse charge basis shall also be mentioned

*Taxpayers irrespective of turnover are encouraged to use HSN Code at 6 digit or 8 digit level while it is mandatory for exports and imports. Taxpayers with turnover exceeding Rs 5 crore in previous financial year are mandatorily required to use HSN code at 4 digit-level for goods and SAC code for services. Taxpayers with turnover between Rs 1.5 crores and Rs 5 croresmay use HSN code at 2 digit level in the first year which would be mandatory from second year onwards.

The Board and the Commissioner are empowered to notify the number of digits of HSN code for goods and SAC code for services and also to exempt any class of taxable person from mentioning it.
S No. By Whom Circumstance By When
1 Registered Taxable Person Supply of goods involving movement of goods Before or at the time of removal of goods*
Supply of goods not involving Before or at the time of delivery or making available to the recipient*
Supply of service Before or after provision of service but within 30 days from the date of supply of service*
2 Newly registered taxable person For the period from the effective date to the date of issuance of certificate of registration Within one month from the date of issuance of certificate of resignation, the taxable person can issue revised invoice against the invoice already issued during the period from the effective date to the date of issuance of certificate of registration
3 Registered taxable person For tax payable on reverse charge basis for supplies from unregistered supplier Date of receipt of goods or services
4 Registered taxable person Continuous supply of goods** where successive statements of accounts are involved Before or at the time of issue of each statement
Continuous supply of goods** where successive payments are involved Before or at the time of receipt of each such payment
5 Registered taxable person Continuous supply of services*** where the due date of payment is ascertainable from the contract Before or within 30 days of the due date for payment as per the contract irrespective of actual payment
Continuous supply of services*** where the due date of payment is not ascertainable from the contract Before or within 30 days ater the receipt of payment
Continuous supply of services*** where payment is linked to completion of an event Before or within 30 days after completion of the event
6 Registered taxable person Suppply of services ceases under a contract before completion of the supply At the time of cessation of supply to the extent of the work completed till cessation
7 Registered taxable person When goods are removed on sale or return or approval basis before it is known whether supply has taken place To be issued at the time when it is known that supply has taken place or within 6 months from date of removal, which ever is earlier

*Central/State Govt on the recommendation of the Council can specify the categories of service in respect of which any other document issued in relation to supply shall be deemed to be tax invoice and can also specify time limits for issuance of invoice for specified categories of supply of goods and/or services.

** Continuous supply of goods refers to supply of goods which is provided continuously or recurrent basis under a contract for which the supplier invoices the recipient on periodic or regular basis.

*** Continuous supply of services is supply of services bearing the features of continuous supply of goods but with an additional condition that the contract is a period exceeding 3 months.
Bill of Supply is a document that is issued in lieu of tax invoice is certain circumstances. The specific instances when Bill of Supply is issued are as follows:
  • A registered taxable person supplying exempt goods and/or services
  • A registered taxable person who has opted for composition scheme is required to issue Bill of Supply
Since Bill of Supply is a document issued in lieu of tax invoice, it is presumed that the time limits applicable for issue of invoice would be equally applicable for bill of supply.

However, the GST law permits a registered taxable person not to issue a bill of supply if the value of goods or services supplied is less than Rs 200/- unless the recipient requires such bill.

Bill of Supply shall contain:-
  • Details of the supplier- Name, address and GSTIN
  • Date and consecutive serial number
  • Details of the recipient- Name, address and GSTIN/UID
  • Detail of the item supplied- HSN code/SAC as the case may be
  • Description of goods or services
  • Value of the goods or services
  • Signature
  • Only supplier of goods or services is allowed to issue credit note
  • Credit note is issued by the supplier in the following circumstances:-
    • Taxable value mentioned in tax invoice is found to be excessive
    • Tax payable mentioned in tax invoice is found to be excessive
    • Goods supplied are retuned by the recipient
    • Services supplied are found to be deficient
  • Time limit for issuance of credit note is earlier of the date for filing of monthly return of September or filing of annual return
  • It is very important to note that 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
  • Credit note should contain reference to the serial number and date of the invoice/bill of supply for the rectification of which it is issued
  • Only supplier is permitted to issue debit note
  • Debit note is issued in the following circumstances:-
    • Taxable value mentioned in the tax invoice is found to be less than what is required to be shown
    • Tax payable mentioned in the tax invoice is found to be less than what is required to be shown
  • The output tax liability of the supplier would increase on issuance of debit note and the recipient would be entitled to input tax credit on the basis of debit note. Though no time limit is given in the law, the time limit given for credit notes would be equally applicable since the recipient would become ineligible to take input tax credit beyond those time limits.
  • Debit note should contain reference to the serial number and date of the invoice/bill of supply for the rectification of which it is being issued


Download GST Guide For Businesses
Download GST Rates For Goods
Download GST Rates For Services
Download GST Rates For Services Under Reverse Charge

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