Category: Tax Invoice

The words ‘Revised Invoice’ should be mentioned prominently along with reference of the date and invoice number of the original invoice.

(ICAI FAQ PUBLICATIONS 06-09-2017 TAX INVOICE, CREDIT AND DEBIT NOTES: FAQ NO. 45)

The invoice can be raised on a bi-monthly basis, by the 25th of every 2nd month when the account is submitted.
However, the time of supply provisions get triggered on receipt of payment in advance, for which, a receipt voucher shall be issued. Tax should be discharged on receipt of advances, although invoice is yet to be raised.

(ICAI FAQ PUBLICATION 06-09-2017 -: Tax Invoice, Credit and Debit Notes : FAQ NO. 6)

 

The invoice rules prescribe a separate field to mandatorily mention prominently, the amount of tax and the rate of tax applicable on the price at which the supply is made. Therefore, mentioning a consolidated amount without showing the tax separately will not be valid.

(ICAI FAQ PUBLICATIONS 06-09-2017 TAX INVOICE, CREDIT AND DEBIT NOTES: FAQ NO. 47)

As per section 31(4) of the CGST Act, where, under a contract, there is a continuous supply of goods involving periodic invoices or payments, the invoice shall be issued before or at the time of issue of the statements of account or receipt of payments. Since, the given instance is a case of continuous supply of goods, tax invoice has to be issued latest by the time of submitting the statement every time.

(ICAI FAQ PUBLICATION 06-09-2017 -: Tax Invoice, Credit and Debit Notes : FAQ NO. 5)

 

Goods can be removed by way of:
 Dispatch by the supplier himself,
 Dispatch by any person acting on behalf of the supplier,
 Collection by the recipient himself,
 Collection by any person acting on behalf of the recipient.

(ICAI FAQ PUBLICATION 06-09-2017 -: Tax Invoice, Credit and Debit Notes : FAQ NO. 4)

 

Removal is defined u/s 2(96) of the CGST Act, 2017. Removal in relation to goods means,
(a) dispatch 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.
It can be seen that removal is complete as soon as the goods are dispatched.
However, where the supply is such that the recipient collects the goods from the supplier, the point at which the good are collected would be the time of removal of the goods The dispatch (or collection, as the case may be) would trigger the liability to raise the invoice, and the supplier should not wait until the goods reach the destination.

(ICAI FAQ PUBLICATION 06-09-2017 -: Tax Invoice, Credit and Debit Notes : FAQ NO. 3)

 

In cases where the ownership, or the risks and rewards are transferred without requiring the movement of goods, the goods would be treated as supplied although no movement is involved in effecting such supply.

E.g. when an Agent who is in possession of certain goods decides to buy the goods from the principal, on-site installation of machinery, sale and lease back transactions, etc.

(ICAI FAQ PUBLICATION 06-09-2017 -: Tax Invoice, Credit and Debit Notes : FAQ NO. 2)

 

• If movement of goods is involved, then the tax invoice has to be issued before or at the time of removal of the goods for supply to the recipient.
•  If movement of goods is not involved, then the tax invoice has to be issued before or at the time of the goods are delivered to the recipient or when the goods are made available to the recipient

(ICAI FAQ PUBLICATION 06-09-2017 -: Tax Invoice, Credit and Debit Notes : FAQ NO. 1)

 

In terms of Rule 46(b) of the CGST Rules, 2017 single or multiple series of invoices can be raised by the Registered Person for the supplies made under GST as long as such invoice numbers are unique for a financial year.

( FAQ 14: DRUGS AND PHARMACEUTICALS)