IMPORTANT POINTS RELATED TO INVOICE, CREDIT NOTE & DEBIT NOTE

1.   For goods, tax invoice has to be issued before or at the time of their removal for supply to the Recipient.

2.   For services, tax invoice has to be issued before or after the provision of service but within 30 days of date of supply. This period is 45 days in the case of taxable supply by an insurer or a banking company or a financial institution, including a non-banking financial company.

3.   In case of combined supply of taxable and exempted goods and services the person can issue one tax invoice for the taxable invoice and also declare exempted supply in the same invoice.

4.   There is no requirement to take Aadhaar / PAN details of the customer under the GST Act.

5.   For RCM liabilities tax invoice has to be issued on self either daily, weekly or at least once at the end of the month.

6.   Certain compulsory fields have been specified for invoices

7.   2 digit HSN Code is required to be mentioned if aggregate turnover is between Rs. 1.50 crore to 5 crore, 4 digit if this turnover is over Rs. 5 Crore. Tax payers below turnover of Rs. 150 crore Designating Officer not require to mention this code. These codes are given in R.K. Jain's GST Tariff of India

8.   Export invoices shall carry an endorsement "SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST" or "SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF IGST”.

9.   A Consolidated Invoice for the entire day can also be issued if value of each supply is less than Rs. 200 and the recipient is not registered.

10. For supply of goods, the invoice shall be prepared in triplicate marked original for recipient duplicate for transporter and triplicate for supplier.

11.  For supply of services, the invoice shall be prepared in duplicate marked original for recipient and duplicate for supplier.

12. A taxable supplier working under composition scheme will issue a Bill of supply instead of invoice.

13. For Advance payment, a Receipt voucher would be issued followed by regular tax invoice on supply.

14. In case of continuous supply of services, the issuance of invoice will depend on the terms of contract.

15. In case where the goods are sent or taken on approval, the invoice shall be issued before or at the time of supply or six months from the date of removal, whichever is earlier.

16. A credit note can be issued to recipient if recipient returns the goods to the supplier or Services are found to be deficient.

17. Credit note can also be issued to recipient if taxable value in the original invoice exceeds actual taxable value or tax charged in the original invoice exceeds actual tax to be paid

18. A debit note may be issued by supplier to recipient if tax charged in that original tax invoice is found to be less than the taxable value or tax payable in respect of such supply.