GST Update on Issue Of Revised Invoice Under GST

The provisions regarding issuance of invoice are given in section 31 of the Central Goods and Service Tax (CGST) Act, 2017. The sub-section 3(a) to this section reads as follows:-

"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 during the period beginning with the effective date of registration till the date of issuance of certificate of registration to him."

An analysis of above section makes it clear that a registered person may issue revised invoice against the invoice already issued during the period beginning with the effective date of registration till the date of issuance of certificate of registration to him.

The term "effective date of registration" is not defined anywhere in the CGST Act. However, it has been explained in the FAQs released by Board on 31.3.2017. The relevant part from these FAQs is produced as follows:-

"Q4. WHAT WILL BE THE EFFECTIVE DATE OF REGISTRATION?
Where the application for registration has been submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be the date on which he became liable for registration.
Where an application for registration has been submitted
by the applicant after thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration.

In case of a person taking registration voluntarily while being within the threshold exemption limit for paying tax, the effective date of registration shall be the date of order of registration."

Thus, the effective date of registration is different than the date of grant of certificate of registration.

Until a person is registered, he cannot issue tax invoice under the provisions of section 31 of CGST Act, 2017. It is only after the grant of registration that he becomes eligible for issuing a tax invoice. In cases where the effective date of registration is before the date of grant of registration, the person must have made some supply in the intermediate period. However, since he was not 'registered' as per law because registration certificate was not granted to him, this provision has been made. Accordingly, where the registration certificate was issued afterwards, he can revise the invoices issued prior to grant of registration certificate and after the date of effective registration.

You can reach us at www.capradeepjain.com and also at our facebook page at

https://www.facebook.com/GSTTODAYBYPRADEEPJAIN/

Comments

GST Update on Issue Of Revised Invoice Under GST

Post a Comment

Query