DRAFT RULES ON TAX INVOICE-QUICK ANALYSIS

GST Update 03.10.2016

GST DAILY DOSE OF UPDATION:-

DRAFT RULES ON TAX INVOICE-QUICK ANALYSIS:-The Draft Rules for invoice provide for mentioning various particulars on tax invoices, bill of supply, debit notes, credit notes, invoices issued by Input Service Distributor. It has been prescribed that the tax invoice should contain details such as name, address and GSTIN of supplier, consecutive serial number which is unique for a financial year, name, address and GSTIN/unique ID number of registered recipient, name address of recipient and address of delivery if recipient is unregistered where taxable value of supply is fifty thousand rupees or more, HSN code of goods or Accounting Code of services, description of goods, total value of goods or services, taxable value of goods or services after taking into account discount or abatement, rate of tax, amount of tax charged, place of supply along with name of state in case of inter-state supply, place of delivery if it is different from place of supply, whether tax is payable on reverse charge, signature or digital signature of authorised representative. The tax invoice in GST regime will require mentioning various particulars inspite of the fact that the invoices will be linked electronically.

A new mechanism has been developed called as obtaining invoice reference number from common portal and the duplicate copy of invoice is not required to be carried by the transporter if the supplier has obtained invoice reference number.

The Draft Rules prescribes number of details to be mentioned on ‘Bill of Supply’ also which is required to be issued by assessee supplying non-taxable goods/services or availing benefit of composition scheme. It is worth noting that assessee issuing bill of supply will be supplying goods/services of which input tax credit is not admissible. Inspite of this, assessee may be specified to mention HSN code for goods or accounting code for services.

Furthermore, the assessee is also required to mention place of supply along with name of State in case of inter-state supplies and place of delivery where it is different from place of supply. This would require assessees to determine place of supply correctly and reflect it in the tax invoice issued by them which would be a cumbersome task as determination of place of supply is complicate task.

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GST Update 03.10.2016

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