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:

◆      Invoice for supply received from unregistered supplier on the date of receipt of supply

◆      Payment voucher at the time of making payment to the supplier.

►   
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 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, if the incidence of tax & interest on such supply has been
passed on to other person

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.

►     
If turnover during a FY exceeds Rs.2 crore (5 crores
in case FY 18-19 & 19-20), accounts should be audited by a C.A. or a Cost Accountant & shall submit a copy of the audited annual accounts, the reconciliation statement u/s 44 (2) in FORM GSTR-9C and other prescribed documents.
Reconciliation statement shall reconcile the value of supplies declared in
the return and audited financial statement. This condition shall not apply to
any department of the Government or a local authority, whose books of account
are subject to audit by the Comptroller and Auditor-General of India or an
auditor appointed for auditing the accounts of local authorities.

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.