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Understanding Invoices and Debit Notes in GST

This document discusses invoices, debit notes, and credit notes under the GST regime in India. It explains that under GST, a tax invoice or bill of supply is required for every supply of goods or services by a registered person. A tax invoice contains important information like the supplier and recipient names and addresses, invoice serial number, date, item descriptions, HSN or accounting codes, quantity of goods, and is required for the recipient to claim input tax credit. The invoice indicates the time of supply, which for goods is the invoice date and for services is the earlier of the invoice or payment date.

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Ganesh Prasad Panda
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54 views5 pages

Understanding Invoices and Debit Notes in GST

This document discusses invoices, debit notes, and credit notes under the GST regime in India. It explains that under GST, a tax invoice or bill of supply is required for every supply of goods or services by a registered person. A tax invoice contains important information like the supplier and recipient names and addresses, invoice serial number, date, item descriptions, HSN or accounting codes, quantity of goods, and is required for the recipient to claim input tax credit. The invoice indicates the time of supply, which for goods is the invoice date and for services is the earlier of the invoice or payment date.

Uploaded by

Ganesh Prasad Panda
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

INVOICE, DEBIT NOTE AND

CREDIT NOTE IN GST

Mr. G.P. PANDA,


LECT. IN COMMERCE
• Generally speaking, an invoice is a commercial
instrument issued by a seller to a buyer. It
identifies both the trading parties and lists,
describes, and quantifies the items sold,
shows the date of shipment and mode of
transport, prices and discounts, if any, and
delivery and payment terms.
Invoice under GST
Under the GST regime, an “invoice” or “tax invoice” means the tax invoice referred

to in section 31 of the CGST Act, 2017. This section mandates issuance of invoice or

a bill of supply for every supply of goods or services or both. It is necessary for a

person supplying goods or services or both to issue invoice. The type of invoice to

be issued depends upon the category of registered person making the supply. For

example, if a registered person is making supplies, then a tax invoice needs to be

issued by such registered person. However, if a registered person is dealing only in

exempted supplies or is availing composition scheme (composition dealer), then

such registered person needs to issue a bill of supply in lieu of tax invoice.
Importance of Tax Invoice under GST
• Under GST a tax invoice is an important document. It not only
evidences supply of goods or services or both, but is also an
essential document for the recipient to avail Input Tax Credit
(ITC).
• A registered person cannot avail input tax credit unless he is
in possession of a tax invoice or a debit note. GST is
chargeable at the time of supply.
• Invoice is an important indicator of the time of supply.
Broadly speaking, the time of supply of goods is the date of
issuance of invoice and the time of supply of services is the
date of issuance of invoice or receipt of payment, whichever
is earlier
Contents of Invoice
• (a) Name, address and GSTIN of the supplier;
• (b) A consecutive serial number, in one or multiple series, containing
alphabets or numerals or special characters hyphen or dash and slash
symbolised as “-” and “/” respectively, and any combination thereof,
unique for a financial year;
• (c) Date of its issue;
• (d) Name, address and GSTIN or UIN, if registered, of the recipient; (e)
Name and address of the recipient and the address of delivery, along
with the name of State and its code, if such recipient is un-registered
and where the value of taxable supply is fifty thousand rupees or more;
• (f) HSN code of goods or Accounting Code of services;
• (g) Description of goods or services; (h) Quantity in case of goods and
unit or Unique Quantity Code thereof;

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