Tax Invoice, credit and debit Notes Flashcards
what is the meaning of continuous supply of goods as per Section 2(32)?
what is the meaning of continuous supply of services as per Section 2(33)?
All the components of supply of goods will also be applicable here, except the fact that it is for a period exceeding 3 months with periodic payment obligations(There is no month restriction for continuous supply of goods)
Where are the provisions relating to tax invoice are located in the GST act? and which chapter number does it contain?
section 31 of the CGST Act as well as Chapter-VI: Tax Invoice, Credit and Debit Notes of Central Goods and Services (CGST) Rules, 2017.
What are the time limits for issuance of invoice under section 31(1), (2), (4) & (5) read with rule 47, when the tax invoice is issued by A SUPPLIER OF TAXABLE GOODS/ TAXABLE SERVICES?
Broad Rules: The Government may, on the recommendations of the Council, by notification, specify the categories of goods or supplies in respect of which
a tax invoice shall be issued, within such time and in such manner as may be prescribed.
Government may notify the categories of services in respect of which any other document issued in relation to supply shall be deemed to be a tax invoice
or tax invoice may not be issued.
What are the time limits for issuance of invoice under section 31(1), (2), (4) & (5) read with rule 47, when the tax invoice is issued by A SUPPLIER OF TAXABLE GOODS/ TAXABLE SERVICES?
Situation: Where supply of services ceases before its completion [Section 31(6)]?
In a case where the supply of services ceases under a contract before the completion of the supply, the invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply made before such cessation.
What are the time limits for issuance of invoice under section 31(1), (2), (4) & (5) read with rule 47, when the tax invoice is issued by A SUPPLIER OF TAXABLE GOODS/ TAXABLE SERVICES?
Situation: Goods sent on sale or return basis as per section 31(7)?
- 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:
(i) before/at the time of supply
or
(ii) 6 months from the date of removal
whichever is earlier.
What are the time limits for issuance of invoice under section 31(1), (2), (4) & (5) read with rule 47, when the tax invoice is issued by A SUPPLIER OF TAXABLE GOODS/ TAXABLE SERVICES?
Situation: Goods sent/ taken out of India for exhibition or on consignment basis for export promotion?
- The activity of sending/ taking the goods out of India for exhibition or on consignment basis for export promotion, except when such activity satisfy the tests laid down in Schedule I (hereinafter referred to as specified goods), do not constitute supply as the said activity does not fall within the scope of section 7 as there is no consideration at that point in time.
- The specified goods sent/taken out of India are required to be either sold or brought back within the stipulated period of 6 months from the date of removal as per the provisions contained in section 31(7).
- If neither of the above activity is performed within the said period the supply will deemed to have been effected. Sender of goods has to issue tax invoice on the date of expiry of 6 months from the date of removal, in respect of such quantity of specified goods which have neither been sold nor brought back, in accordance with the provisions.
- In case the entire quantity of specified goods is brought back within the stipulated period of 6 months from the date of removal, no tax invoice is required to be issued as no supply has taken place in such a case.
What are the time limits for issuance of invoice under section 31(1), (2), (4) & (5) read with rule 47, when the tax invoice is issued by A SUPPLIER OF TAXABLE GOODS/ TAXABLE SERVICES?
Situation: particulars of Tax Invoice - Sections 31(1) & (2) read with rule 46?
- There are no specific formats provided, but rules provide for certain fields which has to be mandatorily provided for.
What are the time limits for issuance of invoice under section 31(1), (2), (4) & (5) read with rule 47, when the tax invoice is issued by A SUPPLIER OF TAXABLE GOODS/ TAXABLE SERVICES?
Situation: Number of HSN digits required on tax invoice and class of registered person not required to mention HSN [Rule 46]?
- For the Nov 21 exams, the second table of B2B and B2C only shall apply, and the first mentioned table has become redundant.
What are the time limits for issuance of invoice under section 31(1), (2), (4) & (5) read with rule 47, when the tax invoice is issued by A SUPPLIER OF TAXABLE GOODS/ TAXABLE SERVICES?
Situation: Manner of issuing the invoice [Sections 31(1) & (2) read with rule 48?
- Simple and straight forward
- This method will be redundant under the E- invoicing provisions, hence when we are covered under E-Invoicing, there is no need of issuing invoice copies in triplicate/duplicate.
What are the time limits for issuance of invoice under section 31(1), (2), (4) & (5) read with rule 47, when the tax invoice is issued by A SUPPLIER OF TAXABLE GOODS/ TAXABLE SERVICES?
Situation: Invoice in case of export of goods or services [Third proviso to rule 46]?
Particulars of an Export Invoice are same as a Tax Invoice. However, where recipient is unregistered and value of supply is ` 50,000 or more, instead of
name of State and its code(Name and address of the recipient and address of delivery will not change), in case of an export invoice, name of the country of destination is to be mentioned.
To whom does E-Invoicing provisions apply? from what date? are there any exceptions to certain categories of assessees?
e-invoicing’ for reporting of business to business (B2B) - This implies that B2C transactions are not covered and Exports are also covered. invoices to GST System, beginning from 1st January 2020 on voluntary basis. With effect from 1st October, 2020, there is a switch from voluntary to mandatory e-invoicing for certain notified category of taxpayers.
Who are the notified tax payers? - All registered businesses with an aggregate turnover (based on PAN) in any preceding financial year from 2017-18 onwards greater than ` 500 crore (hereinafter referred to as ‘notified persons’) will be required to issue e-invoices.
Even here, there is further relaxation until 30-10-2020, but In respect of invoices raised by them between 1.10.2020 and 31.10.2020, they are permitted to upload these invoices on e-invoicing portal within 30 days from the date of invoice.
What does E-Invoicing try to achieve? and by what means of steps by the registered person in creation of the E-Invoice, these benefits are generated?
- Normal creation of invoices in the ERP system will be done as usual by the registered person based on E-Invoice Schema.
- These invoices will then be reported to ‘Invoice Registration Portal (IRP)’. On such reporting, IRP will generate a unique ‘Invoice Reference Number (IRN)- Upload particulars in Form GST INV-01’, digitally sign it and return the e-invoice to the supplier. A GST e-invoice will be valid only with a valid IRN.
- Main Benefits are:
- Under e-invoicing, business has to report the B2B invoice data only once in the e-invoice form and the same is reported in multiple forms (GSTR-1, e-way bill etc.).
- it will facilitate standardisation and inter-operability leading to reduction of disputes among transacting parties, improve payment cycles, reduction of processing costs and thereby greatly improving overall business efficiency.
- since a complete trail of B2B invoices is available with the Department, it will enable the system-level matching of input tax credit and output tax thereby reducing the tax evasion.
- The e-invoice system will help to curb the actions of unscrupulous taxpayers and reduce the number of fraud cases as the tax authorities will have access to data in real-time - Curbing the creation of Fake invoices.
Who are the persons, other than notified persons to whom the provisions of E-Invoicing shall not apply? Even for notified persons where B2C transactions are nor allowed?
- e-invoicing is also not applicable to invoices issued by Input Service Distributor (ISD).
- invoice issued by a notified person is in respect of supplies made by him tax on which is payable under reverse charge under section 9(3), e-invoicing is applicable.
- specified category of supplies are received by notified person from unregistered persons [attracting reverse charge under section 9(4)] or through import of services, e-invoicing doesn’t arise/ not applicable.
- E-invoicing is also not applicable for import of goods (Bills of Entry).
- Other exemptions from E-Invoicing - Image
- For SEZ related - It is important to note that when the aggregate turnover of SEZ unit which also has a DTA unit and the turnover of such DTA unit is less than 500 crore, still E - invoicing will be applicable to such DTA, because turnover is PAN based and has to be seen only that way.
Can the E-invoice already uploaded in the Invoice registration portal(IRP) and for which Invoice reference number(IRN) is obtained be cancelled or amended?
- Where needed, the seller can cancel IRN for an e-invoice already reported by reporting it on IRP within specified time.
- Amendment of e-invoice already uploaded on IRP will be done only on GST portal. Amendment of invoices is not possible through the IRP.
What is E-Invoicing Schema and how does the activities flow between various components within the system in creation of the E-Invoice and how does IRP interact with GST common portal and E-Way bill portal?
- This uniform standard format (containing specified fields) applicable for all the businesses across the country is known as ‘e-invoice schema’. It is notified as Form GST INV-1. E-invoice schema mandates what particulars shall be reported in electronic format to IRP.
- The overall work flow of e-invoice generation, its reporting/registration and receipt of confirmation is depicted in the diagrams below:- See Image
What is the concept of revised tax invoices as per Section 31(3)(a) read with rule 53?
- Revised Tax Invoices shall be issued within 1 month from the date of issuance of certificate of registration. The words “Revised Invoice” shall be indicated prominently on such invoices.
- Revised Invoice can be issued for supplies effected between effective date of registration(Differs between normal and voluntary registration cases) and the date of issue of certificate of registration.
- A Normal person has to apply for registration within 30 days of becoming liable
When can consolidated revised tax invoices can be issued and when it cannot be issued? what are the particulars in the invoice which are minimum recommended as per the rules?
- A registered person may issue a Consolidated Revised Tax Invoice in respect of all taxable supplies made to an unregistered recipient during such period.
- However, in case of inter-State supplies, a consolidated Revised Tax Invoice cannot be issued in respect of all unregistered recipients if the value of a supply exceeds ` 2,50,000.
Who shall issue a bill of supply? and whether the issuer is eligible to collect tax on the value mentioned in the bill of supply from the recipient? and what are the modified particulars of Invoice when it bill of supply?
- Section 31(3)(c) stipulates that a registered person supplying exempted goods or services or both or a registered person paying tax under composition levy, shall issue a bill of supply instead of a tax invoice.
- Person opting for composition levy shall mention the words “composition taxable person, not eligible to collect tax on supplies” at the top of the bill of supply issued by him.
- A registered person opting for the composition levy does not collect tax from the recipient on outward supplies made by him.
- Particulars of Invoice - See Image
What are the requirements in relation to the issue of receipt voucher? and what are the particulars of such vouchers?
- A registered person shall, on receipt of advance payment with respect to any supply of goods or services or both, issue a Receipt Voucher evidencing receipt of such payment.
- If suppose at the time of receipt of advance, rate of tax and/or nature of supply is not determinable - Then in this case tax shall be paid at the rate of 18% and the supply shall be treated as an inter state supply.
When is it required to issue refund voucher and what are the particulars which has to be a part of the refund voucher?
- Where, on receipt of advance payment with respect to any supply of goods or services or both the registered person issues a Receipt Voucher, but subsequently no supply is made and no tax invoice is issued in pursuance thereof, the said registered person may issue to the person who had made the payment, a Refund Voucher against such payment.
When an invoice or payment voucher has to be issued by the recipient instead of the supplier? and what are the particulars with which it has to be furnished?
- A registered person who is liable to pay tax under reverse charge [under section 9(3)/9(4) of the CGST Act] shall issue an Invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both.
- Besides, a registered person who is liable to pay tax under reverse charge [under section 9(3)/9(4) of the CGST Act] shall issue a Payment Voucher at the time of making payment to the supplier.
What are the cases in which the supplies can be using a delivery challan instead of issuing invoice as per rule 55?
- DC should be provided in triplicate as how we do for regular invoices and the same shall also be declared for E-way bill purposes.
- The invoice here has to be issued after the removal of goods by issuing DC, at the the time after the actual delivery of goods(To carry invoice book along with him to make this possible).
- Where the goods are transferred in CKD/SKD condition, then a complete invoice has to be prepared before the dispatch and shall issue DC for each of the subsequent consignments in relation and with reference to the complete invoice and original copy of that invoice will be sent along with the last consignment.
When is a supplier permitted to issue any document other than the tax invoice? and what are some particulars which has to be mandatorily be present in such tax invoice?
It is important to note here that keeping in view the large number of transactions in banking, insurance and passenger transportation sector, taxpayers need not mention the address of the customer and the serial number in their invoices.
