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Understanding GST Invoicing for Different Business Cases

There are two type of Tax Invoices under the GST rule – Tax Invoice and Bill of Supply.

Tax Invoice is issued when a registered taxable person supplies taxable goods or services. Whereas, if a supplier is involved in the supply of exempted goods/services, or is paying tax under composition scheme, in such instances the supplier is not allowed to charge any tax. Therefore, a Tax invoice can’t be issued. In such cases, another document called Bill of Supply is issued.

Scenario 1: When there is transportation of goods without issue of invoice

A delivery challan is to be issued by the consigner when there is transportation of goods without issue of invoice. The aforesaid delivery challan is issues for the purpose of goods for job work, goods for reasons other than supply, any notified supplies, or for the purpose of supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is unknown. Along with a delivery challan, it is also important to declare an e-way bill (electronic way bills) when goods are being transported. The delivery challan shall be prepared in triplicate, as mentioned below:-

Copy 1 – Original Delivery Challan The original copy is marked as ‘Original for Consignee’, and it is issued to the consignee.

Copy 2 – Duplicate Delivery Challan The duplicate copy is marked as ‘Duplicate for transporter’, and it is issued to the transporter.

Copy 3 – Triplicate Delivery Challan The triplicate copy is marked as ‘Triplicate for consigner’, and it is to be kept with the consigner.

When tax invoice cannot be issued at the time of removal of the goods, the supplier should issue a tax invoice after the goods are delivered to the recipient.

Scenario 2: When goods transportation agency supplies transportation service

For supply of the service of transportation of goods by road in a goods carriage, the said supplier is to issue a tax invoice or any document in place of a tax invoice.

Scenario 3: When there is supply of passenger transportation service

When a person is supplying passenger transportation service, a tax invoice including a ticket should be issued. The ticket can be in any form, whether serially numbered or not, and whether containing the address of the recipient or not.

Scenario 4: What happens when there is a receipt of advance payment?

In cases where a registered dealer receives an advance payment for supply of goods/ services, a receipt voucher is to be issued by the dealer for the advance payment made by the recipient of goods/ services. However, if the supply of goods/ services does not happen after issuing a receipt voucher, then on the basis of the advance received the dealer can issue a refund voucher to the recipient.

The Government has shared the draft/ format of invoicing for Goods and Service Tax under GST, refer to — http://www.cbec.gov.in/resources//htdocs-cbec/gst/invoice-gst-rules17052017.pdf

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