Oct 23, 2017
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Invoice format in GST with relation to services issued by registered person

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Invoice format in GST with relation to Services

Invoice format in GST with relation to Services is maintain as per the rules and regulation and format that Government of India decide and notify in the official gazette from time to time.

However, an invoice is a commercial instrument issued by a seller to a buyer. Thus, GST India mandates the issuance of an invoice or a bill of supply for every supply of goods or services. Furthermore, its not necessary that only a person supplying goods or services needs to issue an invoice.

The GST law mandates that any registered person buying goods or services from an unregistered person needs to issue a payment voucher as well as a tax invoice. Thus various types of invoices format to be issued depends upon the category registered person making the supply.

Importance of tax invoice format under GST:

Under GST, a tax invoice is an important document. It not only evidences the supply of goods or services,  but is also an essential document for the recipient to avail Input Tax Credit (ITC). A registered person cannot avail Input Tax Credit unless he is in possession of a tax invoice or a debit note.

Services

A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as prescribed in the Invoice Rules. The Government may, on the recommendations of the Council, by notification and subject to such conditions as may mention therein, specify the categories of services in respect of which:
(a) Any other document issued in relation to the supply shall deem to be a tax invoice; or
(b) Tax invoice may not issue.
Thus, it can see to that in case of goods, an invoice has to be issued before or at the time of supply. In case of services, however, an invoice has to be issued before or after the provision of services. If the invoice is issued after the provision of service, it has to be done within the specified period of 3 days from the date of supply of service, as per invoice rules.

Contents of invoice:

There is no format prescribed for an invoice, however, Invoice rules makes it mandatory for an invoice to have the following fields (only applicable field are to be filled):

(a) Name, address and GSTIN of the supplier
(b) A consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters like hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination there of, unique for a financial year
(c) Date of its issue
(d) Name, address and GSTIN or UIN, if registered, of the recipient
(e) Name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is unregistered and where the value of taxable supply is fifty thousand rupees or more
(f) Accounting Code of Services

(g) Description of services
(h) Quantity in case of goods and unit or Unique Quantity Code there of
(i) Total value of supply of goods or services or both
(j) Taxable value of supply of goods or services or both, taking into account the discount or abatement, if any
(k) Rate of tax (Central tax, State tax, Integrated tax, union territory tax or cess)
(l) Amount of tax charged in respect of taxable goods or services (Central tax, State tax, Integrated tax, union
territory tax or cess)
(m) Place of supply along with the name of State, in case of a supply in the course of inter-State trade or commerce
(n) Address of delivery where the same is different from the place of supply
(o) Whether the tax is payable on reverse charge basis

(p) Signature or digital signature of the supplier or his authorized representative

Contents of Bill of Supply:

⇒A bill of supply shall issue by the supplier containing the following details:
(a) Name, address and GSTIN of the supplier
(b) A consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters
like hyphen or dash and slash symbolised as “-” and “/”respectively, and any combination there of, unique for a financial year
(c) Date of its issue

(d) Name, address and GSTIN or UIN, if registered, of the recipient
(e) Accounting Code for Services
(f) Description of goods or services or both
(g) Value of supply of goods or services or both taking into account discount or abatement, if any
(h) Signature or digital signature of the supplier or his authorized representative

Time limit for issuing tax invoice:

The invoice referred to in rule 1, in case of taxable supply of services, shall issue within a period of thirty days from the date of supply of service:
Provided that where the supplier of services an insurer or a banking company or a financial institution, including a non-banking financial company, the period within which the invoice or any document in lieu thereof is to issue shall  forty five days from the date of supply of service.

Manner of issuing invoice:

  1. The invoice shall prepare in duplicate, in case of supply of services, in the following manner:-
    (a) the original copy being marked as ORIGINAL FOR RECIPIENT; and
    (b) the duplicate copy being marked as DUPLICATE FOR SUPPLIER.
  2.  The serial number of invoices issued during a tax period shall furnish electronically through the Common Portal in FORM GSTR-1.

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Renuka is a Final Year LL.B. student at Siddharth College of Law. She has done her Bachelors in Banking & Insurance and has also completed her Masters in Business Management . She likes to participate in legal workshops and Moot Courts. Besides her interest in law, she has a keen aptitude for legal research and is good at putting her analysis into words.

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