Invoices & Accounts (31-36)

Chapter VII: Tax
invoice, credit and debit notes

31

Issue of invoice or any other document
in lieu of invoice:

►   
A registered person
making taxable supply shall issue an invoice showing the description,
quantity of goods and value of supply, tax charged thereon & other
prescribed details.

►   
For goods, invoice to be issued before or at the time of,

◆     
Removal
of goods for supply, if supply involves
movement of goods

◆     
Delivery
of goods to the recipient in other cases

►   
For services, invoice
to be issued before or after the provision of service, but within prescribed period.

►   
Need
not issue invoice if value of
supply is less than
Rs.200.

►   
Issue a bill of supply on exempted
supply or pays tax u/s 10, unless the value of supply is less than
Rs.200.

►   
Issue a receipt voucher on receipt of advance payment. However, if supply is not made and tax invoice is not issued, then the registered supplier
may issue a refund voucher against such advance payment.

►   
If pays tax u/s 9(3)/(4), issue within 30 days from the date of receipt of supply:

◆      Invoice for
supply received from unregistered
supplier.

◆      Payment voucher at the time of making
payment to the supplier. Unregistered supplier
includes supplier who is registered solely for the purpose of deduction of
tax u/s 51.

►   
Issue a revised invoice within 1 month from issue of certificate of registration, against invoice
already issued during the period from effective date of registration to date
of issue of certificate.

►   
Registered person [other than a Government dept., local authority, SEZ unit &
persons referred in rule 54 (2), (3), (4), (4A)] whose turnover in any preceding financial year starting from
2017-18, exceeds Rs.5 crore shall issue e-Invoice in case of supply to regd. Persons & exports. [Notification 13/2020, 61/2020, 70/2020, 88/2020, 05/2021, 23/2021, 01/2022, 17/2022 & 10/2023]

►   
Registered person [other than persons referred
in rule 54(2),(3),(4), (4A) and u/s 14 of IGST Act], whose turnover in any
preceding FY starting from 2017-18, exceeds Rs.500 crores, shall issue the
invoice containing Dynamic Quick Response
Code(QR Code) in case of supply to unregistered
person. [Notification 14/2020, Notification No. 71/2020, Notification No. 28/2021.]

Invoice in Special cases:

►   
If supply of services
ceases under a contract before completion, the invoice shall be issued at the time when the supply
ceases to the extent of the supply made before such cessation

►   
If goods being
sent or taken on
approval for sale or return are removed before
supply, then invoice to be issued before or at the time of, earlier of,
supply or 6 months from the date of removal

In case of
continuous supply of goods:

Case

Invoice shall be issued

If
successive statements of accounts or payment are involved

Before or
at the time of issue or receipt of such statements or payments

In case of
continuous supply of services:

If due
date of payment is there in the contract

On or
before the due date of payment

If payment
date is not there in the contract

Before or
at the time of receipt of payment

If payment
is linked to completion of an event

On or
before the date of completion

32

Prohibition of unauthorized collection
of tax:

►     
Unregistered person shall not
collect tax under this Act.

►     
Registered person shall collect tax only as per this Act or the rules.

33

Amount of tax should be indicated in invoice and other documents.

34

Issue of credit or debit notes:

►   
Credit notes may be
issued by registered supplier in the following cases:

◆     
Taxable value or tax charged in invoices exceeds
actual value or tax payable

◆     
Supply is returned or
is found to be deficient by the recipient

►   
Details of such note
shall be declared in the
return for the month of issue of note but not
later than 30^th November following the end of the FY in which such
supply was made, or the date of furnishing of the relevant annual return,
whichever is earlier

►   
Debit notes (including
supplementary invoice) may be issued if taxable value or tax charged in
invoices is less than the actual value or tax payable & details of such
note shall be declared in the return in month of issue of such note

►   
No reduction in output
tax liability of supplier on account of credit note shall be permitted in the
following cases:,

◆     
If recipient is a
registered person and ITC in respect of that credit note is not reversed by
the recipient

◆     
If the incidence of
tax on such supply has been passed on to any other person in other cases:.

Chapter VIII: Accounts
& records

35

►    
Registered person
shall maintain at principal place of business a true & correct account of:

◆     
Production , inward
& outward supply

◆     
Stock of goods

◆     
ITC availed

◆     
Output tax payable
& paid

◆     
Other prescribed
particulars

►    
If multiple places of
business are specified in the certificate of registration, the accounts
relating to each place of business shall be kept at such places

►    
Every owner or
operator of any storage place & every transporter, whether registered or
not, shall maintain records of the consigner, consignee & other
prescribed details.

36

►     
Every person required
to maintain records u/s 35 shall retain them until the expiry of 72 months from the due date of
furnishing of annual return for the year for which record is kept.

►     
Records pertaining to
the subject matter of
proceedings before any authority or investigation
for an offence under Chapter XIX, shall be retained for 1 year
after final disposal of such proceedings or for the period specified above,
whichever is later.