Tuesday, July 5, 2016

INVOICING UNDER GST

To issue invoice for supply of Goods/Service by taxable persons is another interested and important task. Here you understand how:-

 Name of the invoices:-

TAX INVOICE:    FOR TAXABLE SUPPLY OF GOODS/ SERVICE
BILL OF SUPPLY:  FOR NON-TAXABLE SUPPLY OF GOODS/SERVICES

When to issue?


Issue of Invoices, possibilitiesSupply Of GoodsSupply Of Services
After receiving of paymentYes, PossibleYes, Possible
Before receiving of  PaymentYes, PossibleYes, Possible
Before Supply of Goods/ServicesNot  PossibleYes, Possible
After Supply of Goods/ServicesNot  PossibleYes, Possible

Reasons:-
  1. In case of supply of Goods -“A taxable person need to issue invoice mandatorily at the time of supply of Goods

  1. In Case of supply of services – “A taxable person need to issue invoice mandatorily within the prescribed time”.  

What to include in invoice?

Apart from other things like GST registration no/Date/address etc, following are mandatory
PARTICULARSSupply Of GoodsSupply Of Services
DescriptionYesYes
QuantityYesNA
VALUEYesYes
Tax thereonYesYes

AMOUNT OF TAX TO SHOW


Amount of tax to be indicated in tax invoice and other documents
 SECTION 23 A.

AMOUNT OF TAX 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.
 COMMENT:-  AS PER THIS PROVISIONS,  IT IS NOT POSSIBLE FOR SUPPLIERS TO MARK-
“Inclusive Of Taxes” IN TAX INVOICES
NOTE:- IN PROVISION IT IS CLEARLY STATED THAT IT IS TO MENTION ON TAX INVOICE AND OTHER DOCUMENTS.  However nothing mentioned about the- BILL OF SUPPLY.
A clarification may require-  Meaning of Other Like documents
 Or
 Is Bill of supply other like documents?
Although as per our understanding Bill of Supply should not be part for section 23A.
FOR MORE UPDATES VISIT GSTSEVA.COM

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