Last date for GST Tax Invoice for goods
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When Should Tax invoice be issued under GST act for supply of Goods ?
Tax invoice .
Relevant Portion of Section 31 (1) of CGST Act 2017
A registered person supplying taxable goods shall, before or at the time of,—
(a) removal of goods for supply to the recipient, where the supply involves movement of goods; or
(b) delivery of goods or making available thereof to the recipient, in any other case…………..
“removal” in relation to goods, means—
(a) despatch of the goods for delivery by the supplier thereof or by any other person acting on behalf of such supplier; or
(b) collection of the goods by the recipient thereof or by any other person acting on behalf of such recipient; [Section 2(96) of CGST Act 2017 ]
Example -1 Tax Invoice in Case of Removal of Goods
X Ltd supplies Printer to its dealer Mr A, the invoice must be issued at the time of or before removal of the Printer from X Ltd’s premises. This is because the supply involves movement of the Printers to MR A.
Example – 2 Tax Invoice in Other Case
X Ltd purchases a generator set, which will be assembled and installed at the factory premises by the supplier. Here, since the supply does not require movement of the generator set, the invoice must be issued at the time when the generator set is made available to X Ltd .
Provision under GST is different than provision under earlier VAT Laws. under VAT laws , Invoice was required to be issued when ‘transfer of property’ takes place even though delivery has not been taken place. but under GST invoice has to e issued at the time of their ‘removal’ or ‘delivery’.
When can the supplier skip the issue of Tax Invoice at the Time of removal and can issue the Tax Invoice at the time of delivery?
Where the goods being transported are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of goods for the purpose of supply, the supplier shall issue a tax invoice after delivery of goods. [ Rule 55(4) of CGST and SGST Rules, 2017 ]
For Example when weighment of goods is to be done after clearance of goods
When Should Tax invoice be issued under GST act for continuous supply of Goods ?
Tax invoice .
Relevant Portion of Section 31 (4) of CGST Act 2017 :-
In case of continuous supply of goods, where successive statements of accounts or successive payments are involved, the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such payment is received.
“Continuous supply of goods” means a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis and includes supply of such goods as the Government may, subject to such conditions, as it may, by notification, specify [ section 2(32) of CGST Act ]
Comments :- For Example
- Supply of gases through piplines with billing after every 15 days
- Supply of say water bottles and billing on monthly basis
- Vendor managed inventory with agreed billing schedule monthly/fortnightly
- Open Purchase orders with weekly billing schedule.
When Tax Invoice is required to be issued in case of Goods sent on approval for Sale or return basis ?
Tax invoice .
Notwithstanding anything contained in sub-section (1), where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued
- before or at the time of supply or
- six months from the date of removal,
whichever is earlier..
CA Satbir Singh Comment :-
For Example if goods are sent for sale on approval basis. Goods would be removed at a certain time, and may be delivered /made available to the location of the recipient. However, it is not known at the time of removal, whether the transaction results in a supply. Therefore, the time of confirmation by the recipient that he wishes to retain the goods or 6 months from date of removal would be the due date for issuing the tax invoice.
When Should Tax invoice be issued under GST act if goods are being transported in a semi knocked down or completely knocked down condition ?
Transportation of goods without issue of invoice
Where the goods are being transported in a semi knocked down or completely knocked down condition –
(a) the supplier shall issue the complete invoice before dispatch of the first consignment;
(b) the supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;
(c) each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and
(d) the original copy of the invoice shall be sent along with the last consignment.