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Published on:
February 23, 2023
By
Prudhvi Raj

Tax Invoice, Credit and Debit Notes under Revised Model GST Law

The introduction of the Goods and Services Tax (GST) in India has brought about a significant shift in the way taxes are levied and collected. It has simplified the tax structure and eliminated the cascading effect of taxes that was prevalent under the old regime. In this article, we will look at the provisions related to tax invoices, credit and debit notes under the revised model GST law.

What is a Tax Invoice?

A tax invoice is a document that is issued by a registered dealer to another registered dealer at the time of the supply of goods or services. It contains details such as the name, address and GSTIN of the supplier and the recipient, a description of the goods or services, the quantity and value of the goods or services, the rate of tax applicable and the amount of tax payable.

It is mandatory for a registered dealer to issue a tax invoice for every taxable supply of goods or services made to another registered dealer. The tax invoice must be issued within a specified time period which is dependent on the nature of the supply. For goods, it must be issued before or at the time of delivery and for services, it must be issued within 30 days from the date of supply.

Credit and Debit Notes

There may be instances where a registered dealer may need to issue a credit or debit note to another registered dealer. A credit note is issued when there is a reduction in the value of the goods or services supplied, while a debit note is issued when there is an increase in the value of the goods or services supplied.

A credit or debit note must contain details such as the name, address and GSTIN of the supplier and the recipient, the date of issue, the reason for issuing the note, the original invoice number and date, the amended invoice number and date, the value of the goods or services and the amount of tax payable.

Provisions under Revised Model GST Law

The revised model GST law contains several provisions related to tax invoices, credit and debit notes. Let's take a look at some of them:

1. Time of Issuance of Tax Invoice

Under the revised model GST law, a tax invoice must be issued at the time of supply of goods or services. In case of continuous supply of goods or services, it must be issued at the time of receipt of payment.

2. Manner of Issuance of Tax Invoice

A tax invoice must be issued in triplicate. The original copy is for the recipient, the duplicate copy is for the transporter and the triplicate copy is for the supplier. In case of exports, the original copy is for the recipient, the duplicate copy is for the supplier and the triplicate copy is for the recipient.

3. Time of Issuance of Credit or Debit Notes

A credit or debit note must be issued within a specified time period which is dependent on the nature of the supply. For goods, it must be issued before or at the time of delivery and for services, it must be issued within 30 days from the date of supply.

4. Time Limit for Reversal of Input Tax Credit

If a registered dealer issues a credit or debit note to another registered dealer, the latter must reverse the input tax credit claimed earlier in respect of the original invoice. This must be done within a specified time limit which is dependent on the nature of the supply.

5. Mandatory Disclosure in Credit or Debit Notes

A credit or debit note must contain details such as the name, address and GSTIN of the supplier and the recipient, the date of issue, the reason for issuing the note, the original invoice number and date, the amended invoice number and date, the value of the goods or services and the amount of tax payable.

Conclusion

Tax invoices, credit and debit notes are an integral part of the GST regime. The revised model GST law contains several provisions related to these documents which are aimed at ensuring transparency and compliance. It is important for registered dealers to be aware of these provisions and comply with them in order to avoid any penalties or legal issues.

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Updated on:
March 16, 2024