Tax invoice and credit/debit notes under GST
A registered taxable person supplying-
(i) taxable goods shall issue, at the time of supply, a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed
(ii) taxable services shall issue a tax invoice, within the prescribed time, showing the description, the tax charged thereon and such other particulars as may be prescribed – clause 23 of GST Model Law, 2016.
Revised Invoice if supply was made prior to registration under GST – A registered taxable person may issue a revised invoice against the invoice already issued during the period starting from the effective date of registration till the date of issuance of certificate of registration to him.
Bill of supply if non-taxable goods or under composition scheme – A registered taxable person supplying non-taxable goods and/or services or paying tax under the provisions of section 8 (composition scheme) shall issue, instead of a tax invoice, a bill of supply containing such particulars as may be prescribed.
Tax invoice includes supplementary or revised invoice or invoice of ISD – “Tax invoice” shall be deemed to include a document issued by an Input Service Distributor under section 17, and shall also include any supplementary or revised invoice issued by the supplier in respect of a supply made earlier – explanation to clause 23 of GST Model Law, 2016.
Amount of tax to be indicated in tax invoice and other documents
Where any supply is made for a consideration, every person who is liable to pay tax for such supply shall prominently indicate in all documents relating to assessment, tax invoice and other like documents, the amount of tax which will form part of the price at which such supply is made – clause 23A of GST Model Law, 2016.
This does not apply to taxable person paying tax under composition scheme.
Credit and debit notes
If value or tax indicated in tax invoice is to be changed, Credit Note or Debit Note can be issued.
Credit Note – Where a tax invoice has been issued and the taxable value and/or tax charged in that tax invoice is found to exceed the taxable value and/or tax payable in respect of such supply, the taxable person, may issue to the recipient a credit note containing prescribed particulars.
Such credit note can be issued on or before the thirtieth day of September following the end of the financial year in which such supply was made, or the date of filing of the relevant annual return, whichever is earlier.
However, credit note cannot be issued by the said person if the incidence of tax and interest on such supply has been passed by him to any other person – clause 24(1) of GST Model Law, 2016.
Really, issuing credit note with GST itself means that supplier is taking back the incidence of tax which he had passed on.
If incidence of GST has been passed on, credit note can be issued without GST. Further, if the recipient has availed input tax credit, there is no point in issuing credit note with GST.
Debit Note – Where a tax invoice has been issued and the taxable value and/or tax charged in that tax invoice is found to be less, the taxable person shall issue to the recipient a debit note containing prescribed particulars.
Such debit can be issued on or before the thirtieth day of September following the end of the financial year in which such supply was made, or the date of filing of the relevant annual return, whichever is earlier – clause 24(3) of GST Model Law, 2016.
Declaration of debit and credit notes in return and adjusting tax liability – Any registered taxable person who issues or receives a credit or debit note in relation to a supply of goods and/or services shall declare the details of such credit or debit note in the return for the month during which such credit or debit note has been issued or received or in the return for any subsequent month.
However, such debit note or credit note cannot be declared in return later thanSeptember following the end of financial year in which such supply was made, or the date of filing of the relevant annual return, whichever is earlier.
After filing details in return, the tax liability shall be adjusted in the manner specified – – clause 24(3) of GST Model Law, 2016.