Tax Invoice - Under Indian GST

Under GST, the value of a

supply of goods and/or services would be the price actually paid or payable for the said supply of goods and/or services. It is important for the the supplier and the recipient of the supply to be independent of each other, the price is the sole consideration for the supply and is the fair market value for such goods and/or service.

Issuing Invoice

A registered taxable person under

GST supplying goods or service is required to issue a tax invoice at the time of supply of goods and/or service. Tax invoice under GST must mention the details of the supplier and recipient, the description, quantity and value of goods, the tax charged and any other particulars as may be required. Further, where any supply is made for a consideration, every person who is liable to pay tax for such supply is required to 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. After issue of invoice at the time of supply, a registered taxable person can issue a revised tax invoice against the invoice already issued. Read more about creating an invoice.

Bill of Supply

In case a registered taxable person is supplying non-taxable goods and/or services. then a bill of supply containing details like description and quantity of goods can be provided instead of a tax invoice.

Credit Note

In case a tax invoice has been issued for supply of any goods and/or services and the taxable value and/or tax charged in that tax invoice is found to exceed the taxable value and/or tax payable, then the taxable person, who has supplied such goods and/or services, can issue to the recipient a credit note before the 30th of September following the end of the financial year in which such supply was made, or the date of filing of the relevant annual return, whichever is earlier.

Debit Note

If a tax invoice has been issued for supply of any goods and/or services and the taxable value and/or tax charged in that tax invoice is found to be less than the taxable value and/or tax payable, then the taxable person, who has supplied such goods and/or services, can issue to the recipient a debit note. Debit note must be issued on or before the 30th of September following the end of the financial year in which such supply was made, or the date of filing of the relevant annual return, whichever is earlier.

Adjustment for Credit and Debit Note

A registered taxable person who issues or receives a credit or debit note in relation to a supply of goods and/or services should declare the details of such credit or debit note, in the return for the month during which such credit or debit note has been issued or received or in the return for any subsequent month but not later than September following the end of financial year in which such supply was made, or the date of filing of the relevant annual return, whichever is earlier. Based on the declaration of all credit and debit notes, the tax liability would be adjusted.

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Frequently Asked Questions

Common questions about GST Tax Invoice Compliance and Guidelines in India.

A Tax Invoice under GST is a document that must be issued by a registered taxable person when supplying goods or services. It should contain details such as the supplier and recipient's information, description and quantity of goods or services, the tax charged, and any other required particulars.

A Tax Invoice must be issued at the time of supply of goods or services by a registered taxable person under GST.

A Bill of Supply is a document that can be provided instead of a Tax Invoice when a registered taxable person is supplying non-taxable goods or services. It should contain details like the description and quantity of goods.

A Credit Note is issued by a taxable person when the taxable value or tax charged in a Tax Invoice is found to be higher than the actual taxable value or tax payable. It must be issued before the 30th of September following the end of the financial year in which the supply was made, or the date of filing the relevant annual return, whichever is earlier.

A Debit Note is issued by a taxable person when the taxable value or tax charged in a Tax Invoice is found to be lower than the actual taxable value or tax payable. It must be issued on or before the 30th of September following the end of the financial year in which the supply was made, or the date of filing the relevant annual return, whichever is earlier.

A registered taxable person who issues or receives a Credit or Debit Note must declare the details in their GST return for the month in which the note was issued or received or in any subsequent month, but not later than September following the end of the financial year in which the supply was made, or the date of filing the relevant annual return, whichever is earlier. The tax liability is then adjusted based on these declarations.

Yes, after issuing a Tax Invoice at the time of supply, a registered taxable person can issue a revised Tax Invoice against the invoice already issued.

Under GST, where any supply is made for a consideration, every person liable to pay tax for such supply must prominently indicate the amount of tax forming part of the price on all documents related to assessment, Tax Invoice, and other similar documents.

Under GST, the value of a supply of goods or services should be the price actually paid or payable for the said supply. It is important for the supplier and the recipient of the supply to be independent of each other, and the price should be the sole consideration and the fair market value for such goods or services.

A Tax Invoice under GST must mention details such as the supplier and recipient's information, the description, quantity, and value of goods or services, the tax charged, and any other required particulars.