Tax Invoice – Section 31 of CGST Act. 2017

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Time of Issue of Tax Invoice for – Supply of Goods and – Supply of Services , have been separately dealt with under various sub-sections of Section 31 of CGST Act. 2017 and as such, these have been separately discussed hereunder :

(A) Time of Issue of Tax Invoice for ‘Supply Of Goods’ – Section 31 of CGST / SGST Act, 2017


(1) Registered
person supplying taxable goods [Section 31(1)]
Tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed shall be issued by the supplier of taxable goods as under— where the supply involves movement of goods — before or at the time of removal of goods for supply to the recipient; orin any other case — before or at the tune of delivery of goods or making available thereof to the recipient. The Government may, on the recommendations of the Council, by notification, specify the categories of goods or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed. [Proviso to section 31(1)]
(2) Continuous supply of goods [Section 31(4)]Where successive statements of accounts or successive payments are involved— — the invoice shall be issued before or at the time each such statement is issued or. as the ease may be, each such payment is received.
(3) Goods sent or taken on approval for sale or return are removed before the supply takes place [Section 31(7)]The invoice shall be issued— — before or at the time of supply or — 6 months from the date of removal, whichever is earlier. Example : (A) R, a registered person sends goods to G on 10.9.2018 on approval or return basis. G gives his approval to the goods on 20.11.2018. In this case, the invoice should be issued on: 20.1 1.2018 (date of approval is taken as the time of supply)9.3.2019 i.e. 6 months from the date of removal whichever is earlier. Therefore, the invoice should be issued on 20.11.2018.
(B) What will be the answer if the approval is given by G on 20.4.2019 instead of 20. 11.2018 ? In this case 6 months from the date of removal ends on 9.3.20 19 i.e. before the time of supply on 20.4.2019. Therefore, the invoice should be issued on 9.3.2019.

(B) Time of Issue of Tax Invoice for ‘Supply Of Services’ – Section 31 of CGST / SGST Act, 2017

(1) Registered
person supplying taxable services [Section 31(2)]
Tax invoice showing the description, value, tax charged thereon and such other particulars as may be prescribed shall be issued by supplier of taxable services— before or after the provision of service but within 30 days from the date of supply of service [45 days in case of an insurer or banking company or financial institution, including a non-banking financial company (NBFC)].
The Government may. on the recommendations of the Council, specify the categories of services in respect of which— (a) Any other document issued in relation to the supply shall be deemed to be a tax invoice; or (b) Tax invoice may not be issued. [Proviso to section 31(2)]
(2) Continuous supply of services [Section 31(5)]Tax invoice shall be issued,— (a) where the due date of payment is ascertainable from the contract,— on or before the due date of payment: (b) where the due date of payment is not ascertainable from the contract, — before or at the time when the supplier of service receives the payment: (c) where the payment is linked to the completion of an event, — on or before the date of completion of that event. Example : Manish, a Chartered Accountant in practice enters into an agreement on 1.10.2018 with RG L.td. to provide consultancy services for a period of one year for a t& of Rs. 6,00,000. The due date of payment is 10th of every month, the first payment becoming due on 10.11.2018. In this case, a invoice shall be issued on or before 10th of the every month starting from 10th November 2018. In the above case, if the due date of payment is not ascertainable, the invoice will be raised at the time he receives the payment.
(3) Cessation of supply of services under a contract before the completion of
supply [Section 31(6)]
The invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply made before such cessation. Example : On 01.112018 R agrees to supply ‘Commercial Training and Coaching Services’ to G on daily basis for a period of three months. However, after 45 days. due to some unavoidable reasons, the aforesaid services could not be supplied by R. In the above case, R shall be required to issue the invoice at the time when the supply ceases. Further, such invoice shall be issued to the extent of the supply made for 45 days only.

(C) Consolidated Tax Invoice — If value of each supply is less than Rs. 200 [Section 31(3)(b) and Proviso to Rule 46 ]

Registered person may not issue tax invoice for each supply of goods or services ifvalue of goods and services .
or both per invoice  is less than Rs. 200 but can issue a consolidated tax invoice at close of each day [Section
31(3)(b)]
Registered person may issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies provided the following conditions are satisfied.

(a) the recipient is not a registered person; and

(b) the recipient does not require such invoice.

Tax invoice shall have to be issued if any of the above conditions is not satisfied.

(D) Type of Tax Invoice under other ‘Special Circumstances’ [Section 31(3)] [Read with Rule 53 of CGST Rules, 2017]

(1) Revised invoice’s after first time registration under CGST Act [Section 31(3)(a)]A registered person may, within one month from the date of issuance of certificate of registration and in such manner as may be prescribed, issue a revised invoice against the invoice already issued without collection of tax during the period beginning with the effective date of registration till the date of issuance of certificate of registration to him. Consolidated Revised Tax Invoices in certain cases A registered person may issue a Consolidated Revised Tax Invoice in respect of all taxable supplies made to an unregistered recipient during such period. However, in case of inter-State supplies, a consolidated Revised Tax Invoice cannot be issued in respect of all unregistered recipients if the value of a supply exceeds Rs. 2,50,000. Example : R started a business of dealing in computer parts on 1.12.2018. His turnover exceeded Rs. 20,00,000 on 15.2.2019 and he therefore becomes liable to get registration under GST. I-Ic applies for registration on 25.2.20 19 and the certificate of registration is granted to him on 5.3.20 19. This certificate shall be effective from
15.2.2019. He may issue revised tax invoices in respect of all taxable supplies made during the period 15.2.2019 to 5.3.2019.
(2) Bill of supply(instead of a tax invoice)—
in case of supply of exempted goods or services or both or supply by a composition dealer [Section 31(3)(c)]
In this case, a registered person shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed. Provided that the registered person may not issue a bill of supply if the value of the goods or services or both supplied is less than Rs. 200 subject to such conditions and in such manner as may be prescribed. Note: Any tax invoice or any other similar document issued under any other Act for the time being in force in respect of any non-taxable supply shall be treated as bill of supply for the purposes of the Act.
(3) Receipt toucher on receipt of
advance payment [Section 31(3)(d)]
A registered person shall, issue a receipt voucher or any other document, containing such particulars as may be prescribed, evidencing receipt of such payment. Further, where at the time of receipt of advance— the rate of tax is not determinable—the tax shall be paid at the rate of 18%,the nature of supply is not determinable—the same shall be treated as inter State supply.
(4) Refund voucher if no supply is made after issue of receipt voucher and no
supply and tax
Invoice is issued in pursuance thereof [Section 31(3)(e)]
The said registered person may issue to the person who had made the payment, a refund voucher against such payment.
(5) Recipient to
issue
(i) invoice in case of supply on reverse charge basis and
(ii) payment voucher at the time of making payment [Section 31(3)(f) &(g)]
A registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both. Note: Section 9(4) relating to reverse charge in case registered person receives supply of goods or services from unregistered person has been deferred till 30.6.20 18.
Further, as per section 31(3)(g), he shall issue a payment voucher at the time of making payment to the supplier.

Summarised Chart of Type of Invoices

Tax invoiceConsolidated
tax invoice
Revised
invoice
Bill of
supply
Receipt
voucher
InvoicePayment
voucher
Issued by supplier of goods and servicesThe registered person may issue a consolidate tax invoice at the end of the day instead of tax invoice of each supply if value of each supply is less than Rs. 200Issued against the bills already issued without collection of tax during the period beginning with the effective date of registration till the date of issuance of certificate of registration to himIssued (instead of a tax invoice)— in case of supply of exempted goods or Services or both or supply by a composition dealerIssued on receipt of advance paymentIn case of reverse charge, the recipient of goods and services issue the invoiceIn case of reverse charge, the recipient of goods and services issues payment voucher at the time of making payment

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