• Jun 10, 24
• bhushanbjain
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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: GST act 2017    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 GST act 2017   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 [for specific scenarios.

State-Specific Considerations:

While the GST Act sets a general framework, individual states within India might have GST act 2017    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 GST act 2017   .
• 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 GST act 2017    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 GST act 2017   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 before that date.
  • If there’s no specific due date in the GST act 2017    contract, the invoice needs to be issued before or at the time of receiving the payment.
  • If the payment is linked to an event, the invoice needs to be issued on or before the 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 GST act 2017   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   GST act 2017  and Customs (CBIC) for the most up-to-date information.

MANNER OF ISSUING INVOICE

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 GST act 2017   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 GST act 2017    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 days from 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

Frequently Asked Questions (FAQs) on Manner of Issuing Invoice under GST Act, 2017

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 GST act 2017    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 GST act 2017    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 GST act 2017   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 GST act 2017   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 GST act 2017    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 GST act 2017   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 GST act 2017   ZAaainformation, 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 GST act 2017    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   GST act 2017   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 49 of 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 GST act 2017   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 GST act 2017   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) GST act 2017   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 GST act 2017   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 GST act 2017    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 GST act 2017   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 GST act 2017    include the following details:

• Supplier details: Name, address, and GST Identification Number GST act 2017   (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 GST act 2017   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 GST act 2017    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: No. 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: No. 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 GST act 2017  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 GST act 2017   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 GST act 2017    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 GST act 2017    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 GST act 2017   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 GST act 2017    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)

REFUND VOUCHER

A refund voucher under the GST Act, 2017 is not a concept defined in the act itself. However, it is a term used in practice to refer to a document issued by a supplier in specific situations related to advance payments and cancelled supplies.

Here’s the context:

• Scenario: A supplier receives an advance payment from a recipient for the future supply of goods or GST act 2017   services. The supplier issues a receipt voucher acknowledging the advance amount.
• Cancellation: If the planned supply gets cancelled later, the supplier needs to refund the advance payment to the recipient.

In this scenario, to document the refund process, the supplier may GST act 2017    issue a refund voucher. This voucher serves as a record of the repayment of the advance amount and typically includes details like:

• Date of issue
• Recipient’s name
• Original advance amount
• Refunded amount

It’s important to note that a refund voucher is GST act 2017    not a mandatory document under the GST Act and does not have any specific legal implications. It’s primarily used for internal record keeping and transparency between the supplier and the recipient.

EXAMPLE

Tax Invoice No.: RVC-XXXXXX (Unique voucher number for the financial year) Date: February 29, 2024

Supplier

• Name: [Your Business Name]
• Address: [Your Business Address]
• GSTIN: [Your GSTIN Number]

Recipient

• Name: [Customer Name] (if registered under GST)
• Address: [Customer Address] (if registered under GST)
• **OR
• Place of Supply: [Place of Supply] (if customer not registered under GST)

Description: Refund of Advance Payment for [Reason for Refund]

Details of Advance Received:

• Invoice No.: [Original Invoice Number]
• Date: [Original Invoice Date]
• Amount: ₹ [Original Advance Amount]
• Rate of GST: [Original GST Rate] (CGST [ ], SGST [ ])
• GST Amount: ₹ [Original GST Amount] (CGST ₹ [ ], SGST ₹ [ ])
• Total Amount Paid: ₹ [Original Total Amount (Advance + GST)]

Reason for Refund: [ Briefly explain the reason for refund]

Refund Details:

• Refund Amount: ₹ [Amount being refunded] (including GST)
• Rate of GST: [Applicable GST Rate] (CGST [ ], SGST [ ])
• GST Amount: ₹ [Calculated GST on Refund Amount] (CGST ₹ [ ], SGST ₹ [ ])
• Total Refund Amount: ₹ [Refund Amount + GST on Refund]

**Note:

• The reason for refund should be GST act 2017     clearly mentioned.
• If the refund is partial, details of the remaining advance amount (if any) should be mentioned.
• The applicable GST rate on the refund amount should be mentioned based on the place of supply and nature of supply.

Authorized Signature:

[Your Name] Designation

[Your Company Name]

FAQ QUESTIONS

1. What is a refund voucher under the GST Act?

A refund voucher is a document issued by the government to a taxpayer who is entitled to a refund of GST act 2017    taxes paid under the Goods and Services Tax (GST) Act. This voucher can be used to offset future tax liabilities or claim a cash refund.

2. Who is eligible for a refund voucher?

Several situations can make a taxpayer eligible for a GST refund voucher, including:

• Exports and supplies to Special Economic Zones (SEZs): If a registered taxpayer exports goods or GST act 2017   services or makes supplies to SEZs with payment of tax, they can claim a refund of the tax paid.
• Inverted duty structure: If the rate of tax paid on inputs is higher than the rate of tax charged on outputs, the taxpayer can claim a refund of the excess amount GST act 2017   .
• Excess cash ledger balance: If a taxpayer has an excess balance in their cash ledger account after settling their tax liabilities, they can claim a refund.

3. What is the procedure for claiming a refund voucher?

The procedure for claiming a refund voucher involves:

• Filing an application electronically on the GST portal GST act 2017   with relevant documents and supporting evidence.
• The tax authorities will process the application and may request further information if needed.
• If the claim is approved, a refund voucher will be issued to the taxpayer electronically.

4. What is the time limit for claiming a refund voucher?

The time limit for claiming a refund voucher varies depending on the type of refund:

• Export of goods or services or supplies to SEZs: One year from the date of export or supply.
• Inverted duty structure: One year from the relevant tax period.
• Excess cash ledger balance: Two years from the end of the tax period to which the balance relates.

5. Is there a minimum limit for claiming a refund voucher?

Yes, there is a minimum limit of Rs. 1,000/- for each tax head (CGST, SGST, and IGST) separately, not cumulatively.

6. Can I use a refund voucher to pay for any type of tax liability?

The refund voucher can be used to offset any future tax liability under the GST Act, such as CGST, SGST, and IGST. However, it cannot be used for other taxes like income tax or customs duty.

7. Can I claim a cash refund instead of a refund voucher?

Yes, you can opt for a cash refund instead of a refund voucher. However, this option may be subject to certain conditions and may involve a longer processing time.

CASE LAWS

The concept of “refund vouchers” under the Goods and Services Tax (GST) Act, 2017 is not directly addressed through specific case laws. However, the legal framework for claiming refunds under the GST regime is established by the Act and relevant rules, which can be used to understand the situations where a refund voucher might be issued.

Here’s a breakdown of the relevant provisions:

Refund Mechanism under GST:

• Section 54 of the CGST/SGST Act, 2017: This section outlines various scenarios where a registered taxpayer can claim a refund of taxes paid. These include:
  • Tax paid on exports or deemed exports.
  • Excess tax payment due to errors or miscalculations.
  • Input tax credit (ITC) accumulation exceeding the output tax liability.
• Rule 89 of the CGST/SGST Rules, 2017: This rule prescribes the manner and format for filing a refund claim electronically on the GST portal.

Refund Voucher (Rule 51 of the CGST/SGST Rules, 2017):

This rule mandates the issuance of a refund voucher by a  GST act 2017    supplier in specific situations when an advance payment has been received but the supply of goods or services is not subsequently made. The voucher serves as a record of the refunded amount and the associated tax implications.

Key Points:

• Case laws typically deal with disputes or specific interpretations of legal provisions. Since refund vouchers are a specific procedural requirement rather than a disputed concept, they are unlikely to be the subject of direct case law GST act 2017   pronouncements.
• The legal framework for claiming refunds and issuing refund vouchers is established by the GST Act 2017 and Rules. Understanding these provisions is crucial for both suppliers and recipients.

PAYMENT VOUCHER

A payment voucher under the Goods and Services Tax (GST) Act, 2017, is a document issued by a registered taxpayer to an unregistered supplier when the reverse charge mechanism (RCM) applies to the transaction.

What is the reverse charge mechanism (RCM)?

Under RCM, the responsibility of paying GST on a taxable supply of goods or services shifts from the supplier to the recipient. This typically happens when the supplier is unregistered under GST act 2017.

When is a payment voucher required?

A registered GST act 2017    taxpayer is required to issue a payment voucher to the unregistered supplier at the time of making the payment for the goods or services on which RCM applies.

What information should a payment voucher contain?

As per Section 31(3) (g) of the CGST Act, 2017, the payment voucher should include the following details:

• Name, address, and GSTIN (if any) of the supplier
• A unique consecutive serial number (not exceeding 16 characters) for the financial year
• Date of issue of the payment voucher
• Name, address, and GSTIN of the recipient
• Description of the goods or services on which tax is paid under RCM
• Amount paid to the supplier
• Rate and amount of tax charged under different heads (CGST, SGST/ UTGST, or IGST, and cuss, if applicable)
• Place of supply (if the transaction is interstate, including the state name and code)

EXAMPLE

A payment voucher under the GST Act, 2017 is relevant in the context of the Reverse Charge Mechanism (RCM).

What is Reverse Charge Mechanism (RCM)?

Under RCM, the responsibility of paying GST falls on the recipient of goods or services instead of the supplier, in specific situations. This typically applies when a registered business procures goods or services from an unregistered supplier.

Payment Voucher in RCM:

When a registered taxpayer makes a payment to an unregistered supplier under RCM, they are required GST act 2017    to issue a payment voucher along with the invoice. This voucher serves as a record of the transaction and helps claim input tax credit (ITC) on the GST paid.

What details should a payment voucher include?

• Name and address of the supplier
• Unique serial number for the voucher (within the financial year)
• Date of issue of the voucher
• Name, address, and GSTIN of the recipient (registered taxpayer)
• Description of goods or services received
• Total taxable value
• GST rate (CGST and SGST/UTGST or IGST)
• Total tax amount paid

State Specificity:

The GST Act is a central law, but the tax rates can vary depending on the state of supply. The payment voucher itself doesn’t need any state-specific details beyond the recipient’s address (which might indicate the state). However, the applicable tax rate on the voucher will depend on the state where the supply takes place.

FAQ QUESTIONS

What is a payment voucher under the GST Act, 2017?

A payment voucher is a document issued by a registered taxpayer to an unregistered supplier when GST act 2017   availing goods or services under the Reverse Charge Mechanism (RCM). In RCM, the liability to pay GST falls on the recipient (registered taxpayer) instead of the supplier (unregistered).

When is a payment voucher required?

A payment voucher is mandatory when a registered taxpayer receives:

• Taxable goods or services from an unregistered supplier.
• Goods or services under specific RCM provisions mentioned in the GST Act or notifications.

What are the mandatory details on a payment voucher?

As per CGST Rule 52, a payment voucher must contain the following information:

• Name, address, and GSTIN of the supplier (if registered).
• A unique consecutive serial number (not exceeding 16 characters).
• Date of issue.
• Name, address, and GSTIN of the recipient.
• Description of goods or services.
• Amount paid.
• GST rate (central tax, state tax, integrated tax, UT tax, or cess).
• Tax amount payable (central tax, state tax, integrated tax, UT tax, or cess).
• Place of supply with state name and code (for interstate supplies).
• Signature or digital signature of the supplier or authorized representative.

Is a payment voucher the same as a tax invoice?

No, a payment voucher is different from a tax invoice. A tax invoice is issued by a registered supplier for GST act 2017   any supply of goods or services. It serves as a proof of the transaction and allows the recipient to claim input tax credit (ITC). Conversely, a payment voucher is used only under RCM and doesn’t entitle the recipient to claim ITC.

CASE LAWS

M/s Premier Sales Promotion Pvt Limited vs. Union of India:

In this case, the HC ruled that the issuance of vouchers, including gift vouchers, cash back vouchers, and GST act 2017   e-vouchers, doesn’t amount to a taxable supply of goods or services under the GST Act [1]. The court reasoned that these vouchers function as mere “payment GST act 2017   instruments” similar to pre-deposit instruments, lacking inherent value on their own. This aligns with the definition of “money” being excluded from the ambit of “goods” and “services” under the Act [2].

Implications for Payment Vouchers under RCM:

While the above GST act 2017  case doesn’t directly address payment vouchers used in the Reverse Charge Mechanism (RCM), it suggests that such vouchers might not be independently taxable. The primary purpose of an RCM payment voucher, as mandated by Section 31(3)(g) of the CGST Act, is to serve as a documentary record of the transaction between a registered taxpayer and an unregistered supplier [3].

Therefore, the tax implications would likely stem from the underlying supply of goods or services for which the RCM payment voucher is issued, not the voucher itself.

REVISED TAX INVOICE AND CREDIT OR DEBIT NOTES

The concept of a “revised tax invoice” doesn’t exist under the GST Act, 2017. However, the Act does provide for credit and debit notes to rectify errors or adjust the tax liability in situations where the original tax invoice needs modification.

Here’s a breakdown of both:

Credit note:

• Issued by the supplier when the taxable value or tax charged in the original invoice exceeds the actual amount payable. This could be due to reasons like:
  • Incorrectly charged tax rate
  • Inclusion of additional items not supplied
  • Discounts or refunds offered after the invoice was issued
• Reduces the tax liability of the supplier.
• Must be issued within a specific timeframe, usually within the financial year GST act 2017    of the supply or by the date of filing the annual return, whichever is earlier.
• Details of the credit note need to be declared in the GST return for the month it was issued.

Debit note:

• Issued by the supplier when the taxable value or tax charged in the original invoice is less than the actual amount payable. This could be due to:
  • Undercharged tax rate
  • Additional charges not included in the original invoice
  • Late fees or interest levied
• Increases the tax liability of the supplier.
• Similar to credit notes, specific timelines apply for issuing debit notes.

EXAMPLE

A revised tax invoice is issued when there are errors GST act 2017    or changes in the original tax invoice. Here’s an example:

Original Invoice Details:

• Invoice Number: INV-2023-24-001
• Date: 10-Oct-2023
• Supplier: ABC Enterprises (GSTIN: 01XYZ12345Z1AB12)
• Recipient: XYZ Ltd. (GSTIN: 09PQR67890M1CD23)
• Error: Tax rate for a specific item was incorrectly mentioned.

Revised Invoice:

[Prominently mentioned] Revised Tax Invoice

• Invoice Number: REV-INV-2023-24-001
• Date: 20-Oct-2023
• Supplier: ABC Enterprises (GSTIN: 01XYZ12345Z1AB12)
• Recipient: XYZ Ltd. (GSTIN: 09PQR67890M1CD23)
• Reference: Original Invoice Number: INV-2023-24-001, Date: 10-Oct-2023
• Correction: Corrected tax rate for the specific item mentioned.

(Rest of the invoice details remain the same as the original invoice)

A credit note is issued by the GST act 2017   supplier to the recipient in case of:

• Return of goods or services
• Deficiency in quantity or quality
• Reduction in taxable value or tax charged in the original invoice

Example:

• Credit Note Number: CN-2023-24-001
• Date: 25-Oct-2023
• Supplier: ABC Enterprises (GSTIN: 01XYZ12345Z1AB12)
• Recipient: XYZ Ltd. (GSTIN: 069PQR67890M1CD23)
• Reason: Return of 5 units of Item X from original Invoice Number: INV-2023-24-001
• Details of returned items:
  • Item description: Item X
  • Quantity returned: 5 units
  • Taxable value per unit: Rs. 100
  • Total taxable value: Rs. 500
  • CGST @ 6%: Rs. 30
  • SGST @ 6%: Rs. 30
  • Total amount: Rs. 560

FAQ QUESTION

1. What is a revised tax invoice?

A revised tax invoice is issued to rectify errors GST act 2017    or omissions in the original tax invoice. This can include mistakes in:

• Description of goods or services
• Quantity
• Tax rate
• Tax amount
• Other invoice details

2. When can a revised tax invoice be issued under GST act 2017 ?

A revised tax invoice can be issued within the same financial year as the original invoice.

3. What are the mandatory details of a revised tax invoice under GST act 2017    ?

A revised tax invoice must contain all the mandatory details of a regular tax invoice, along with:

• Original invoice number and date
• Reason for revision

4. What is a credit note under GST act 2017    ?

A credit note is issued by a supplier to a recipient to GST act 2017   decrease the taxable value or tax liability arising from the original tax invoice. This can happen due to:

• Return of goods
• Discount not mentioned in the original invoice
• Correction of overcharging of tax

5. When can a credit note be issued under GST act 2017

A credit note can be issued within one year from the date of the original invoice. However, there are specific exceptions for certain situations.

6. What are the mandatory details of a credit note GST act 2017    ?

A credit note must contain all the mandatory details of a regular tax invoice, along with:

• Original invoice number and date
• Reason for issuing the credit note

7. What is a debit note?

A debit note is issued by a supplier to a recipient to increase the taxable value or tax liability arising from the original tax invoice. This can happen due to:

• Additional charges not mentioned in the original invoice
• Correction of undercharging of tax

8. When can a debit note be issued?

A debit note can be issued within one year from the GST act 2017    date of the original invoice. Similar to credit notes, there are specific exceptions for certain situations.

9. What are the mandatory details of a debit note?

A debit note must contain all the mandatory details of a regular tax invoice, along with:

• Original invoice number and date
• Reason for issuing the debit note

10. Where can I find more information on revised tax invoices, credit notes, and debit notes?

You can refer to the following resources for more information:

• Central Board of Indirect Taxes and Customs (CBIC) website:

CASE LAWS

While there aren’t specific case laws solely focused on revised tax invoices and credit/debit notes under the GST Act, 2017, relevant sections of the Act and associated rules, along with judicial pronouncements on related matters, can provide guidance. Here’s a breakdown:

Revised Tax Invoices:

• CGST Act, Section 31: This section mandates the issuance of a tax invoice for every taxable supply GST act 2017   .
• CGST Rules, Rule 46: This rule allows a registered person to issue revised tax invoices under certain conditions, primarily for supplies made before obtaining a GST registration certificate.

Credit and Debit Notes:

• CGST Act, Section 34: This section GST act 2017    governs the issuance of credit and debit notes in various scenarios, including:
  • When the taxable value or tax charged in a tax invoice is found to be more than the actuals.
  • When goods are returned by the recipient.
  • When there’s a deficiency in the quantity or quality of goods or services supplied GST act 2017   .

Judicial Pronouncements:

While there’s no direct case law on revised invoices, relevant judgments on credit and debit notes offer insights:

• M/s. Radhakrishna Food Products & Ors. Vs. The Commissioner of State Tax (Appeals)-I, Andhra GST act 2017    Pradesh [2021 (6 GSTL 342)]: This case clarifies that a credit note can be issued even after the due date for filing GST returns, provided it’s within the time limit for claiming input tax credit (ITC).