Invoice cum bill of supply for sale to unregistered person for taxable as well as exempted supplies can be issued by per New Rule 46A inserted by NN 45/2017 dated 13-10-2017 Para 2(ii)
However if supply of taxable as well as exempted goods and/or services is made to registered person then Rule 46A is not applicable. Hence whether Invoice sum bill of supply can be issued in such cases is still in enigma.
Can a consolidated bill of supply be issued on a periodic basis?
A separate ‘Bill of Supply’ is not necessary if the value of the goods or services supplied is less than 200 unless the recipient demands for such a bill. In such a case, a consolidated ‘Bill of Supply’ should be prepared at the close of each day in respect of all such supplies to each recipient, separately.
(ICAI FAQ PUBLICATION 06-09-2017 -: Tax Invoice, Credit and Debit Notes : FAQ NO. 21)
What is a ‘Bill of Supply’?
A bill of supply should be issued instead of a tax invoice in case of the following supplies:
supply of exempted goods or services; or
supplies made by a supplier opting composition scheme.
(ICAI FAQ PUBLICATION 06-09-2017 -: Tax Invoice, Credit and Debit Notes : FAQ NO. 20)
What is meant by Continuous Supply of Goods or Services?
- U/s 2(32) of the CGST Act, Continuous supply of goods means a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis.
- There should be a contract for such a supply requiring the supplier to issue invoices to the recipient on a regular or periodic basis. Also, the supply may or may not be through a wire, cable, pipeline or other conduit.
- U/s 2(33) of the CGST Act, Continuous supply of services means a supply of services which is provided or agreed to be provided continuously or on recurrent basis under a contract.
- Such contract should be for a period exceeding 3 months, with periodic payment obligations.
- The Government is also empowered to treat the supply of a particular category of goods or services as ‘continuous supply’, subject to certain conditions, irrespective of the criteria specified above.
(ICAI FAQ PUBLICATION 06-09-2017 -: Tax Invoice, Credit and Debit Notes : FAQ NO. 19)
What are the circumstances in which a Credit Note is to be issued
As per section 34(1) of the CGST Act, for issuing a Credit Note, a tax invoice for a supply should have been issued earlier. A credit note may be issued in the following cases:
The taxable value on which the tax is collected is more than the actual taxable value;
The tax charged is more than what should have been charged;
The recipient has returned the goods or
The recipient has found that the goods or services or both supplied are
deficient.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX INVOICE, CREDIT AND DEBIT NOTES: FAQ NO. 22)
I had made a supply in April. The party returned the goods in May. How will I declare the credit note to the tax authorities
The credit note should be declared in return of outward supplies (GSTR-1) for the month of May.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX INVOICE, CREDIT AND DEBIT NOTES: FAQ NO. 23)
I had made a supply in April. The party returned the goods in October. Will I still be able to issue a Credit Note
A credit note can be issued for any supplies. However, in order to declare the details of the credit note and thereby claim a reduction in output tax liability, it must be issued and declared in a return for the month during which such credit note has been issued but not later than September following the end of Financial Year in which such supply was made, or before filing of the annual return for that Financial Year, whichever earlier and the tax liability shall be adjusted in such manner as may be prescribed: E.g. Assuming that annual return for the year 2017-18 is not yet filed, a credit note can be issued in respect of any of supplies made during the year 2017-18, up to 30th September 2018. However, if the Annual Return is filed for financial year 2017 18 on 30th June 2018, then the details of the credit note for the year 2017-18 cannot be declared in the returns file after 30th June 2018.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX INVOICE, CREDIT AND DEBIT NOTES: FAQ NO. 24)
Will my tax liability be reduced if I issue a Credit Note
The below requirements must be met for claiming a reduction in output tax liability:
(a) It can be proven that the incidence of tax and interest have not been passed on to any person;
(b) The details of the credit note are declared within the prescribed timelines as explained in Q 24 above.
(c) The recipient of the supply should accept credit note in his return of inward
supply and reduce his claim of input tax credit to the extent reduction of tax
liability.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX INVOICE, CREDIT AND DEBIT NOTES: FAQ NO. 25)
When I reject an inward supply, can I issue a Debit Note
A debit note may be raised for accounting purposes. However, for the purpose of GST, such a debit note will be of no relevance. Under the scheme of things, both debit note and credit note are to be issued by the supplier. Where the supplier fails to declare the details of such documents, the recipient can declare the details of the same (i.e., those issued by the supplier) and require the supplier to accept the same, in order to effect amendments in his return of outward supplies (GSTR-1). (Section 34(3) of the CGST Act, 2017).
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX INVOICE, CREDIT AND DEBIT NOTES: FAQ NO. 26)