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, possibilities | Supply Of Goods | Supply Of Services |
| After receiving of payment | Yes, Possible | Yes, Possible |
| Before receiving of Payment | Yes, Possible | Yes, Possible |
| Before Supply of Goods/Services | Not Possible | Yes, Possible |
| After Supply of Goods/Services | Not Possible | Yes, Possible |
Reasons:-
- In case of supply of Goods -“A taxable person need to issue invoice mandatorily at the time of supply of Goods
- 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
| PARTICULARS | Supply Of Goods | Supply Of Services |
| Description | Yes | Yes |
| Quantity | Yes | NA |
| VALUE | Yes | Yes |
| Tax thereon | Yes | Yes |
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
