Tax Invoice and Bill of Supply - Meaning and Contents [GST Law & Practice B.Com 6th Sem CBCS Pattern Notes]

Meaning of Tax Invoice

Under the GST regime, a “tax invoice” means the tax invoice referred to in Section 31 of the CGST Act, 2017.

Sec 31 of the CGST Act, 2017 states that tax invoice is required to be issued by a registered dealer as and when the supply of goods is made and within thirty days of supply of service. Such tax invoices contain information regarding the item supplied, value of supply, classification of supply and the GST on such supply. The amount of GST mentioned in any invoice can be claimed as input tax credit by recipients authorised to claim it.

For example, if a registered person is making or receiving supplies (from unregistered persons), then a tax invoice needs to be issued by such registered person. However, if a registered person is dealing only in exempted supplies or is availing the composition scheme (composition dealer), then such a registered person needs to issue a bill of supply in lieu of tax invoice.

An invoice or a bill of supply need not be issued if the value of the supply is less than Rs. 200/- subject to specified conditions provisos to sub section (3) of Section 31 of the CGST Act, 2017.

Under GST, a tax invoice is 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. GST is chargeable at the time of supply. Invoice is an important indicator of the time of supply.

Contents of Tax 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 thereof, 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 un-registered and where the value of taxable supply is fifty thousand rupees or more

(f) HSN code of goods or Accounting Code of Services

(g) Description of goods or 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. Signature/digital signature of the supplier/his authorised representative not required on

(i) electronic tax invoice

(ii) electronic bill of supply

(iii) electronic consolidated tax invoice in case of banking companies etc. and

(iv) electronic ticket for passenger transportation service

Bill of Supply [Section 31(3)(c)

A bill of supply is similar to a GST invoice except that bill of supply does not contain any tax amount as the seller cannot charge GST to the buyer.

A bill of supply is issued in cases where tax cannot be charged:

a) Registered person is selling exempted goods/services,

b) Registered person has opted for composition scheme

Contents of Bill of supply:

A bill of supply shall be issued 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 thereof, unique for a financial year

(c) Date of its issue

(d) Name, address and GSTIN or UIN, if registered, of the recipient

(e) HSN Code of goods or 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