Tax Invoice, Debit Note And Credit Note under GST:

The Goods and Services Tax (GST) regime was introduced in India on July 1, 2017, to replace the multiple tax structures that existed before. The GST system is a comprehensive tax structure that covers all taxes, including Central and State indirect taxes. One of the significant changes brought in by GST is the new invoice system. Under the GST, all invoices must comply with specific rules and regulations. In this article, we will discuss the different types of invoices and their features under GST.

What is a tax invoice under GST?

A tax invoice is a document that a registered dealer issues to another registered dealer. It is issued when goods and services are supplied, and it contains all the necessary details of the transaction. The tax invoice must be issued within 30 days of the supply of goods or services, and it must contain the following details:

Name, address, and GSTIN of the supplier
Name, address, and GSTIN of the recipient
Invoice number and date of issuance
Description of the goods or services supplied
Quantity and unit of measurement of the goods or services supplied
Value of goods or services supplied
The rate of GST charged
The amount of GST charged

A tax invoice must be issued in duplicate. The original copy is for the buyer, and the duplicate copy is for the supplier. The tax invoice is an essential document for claiming input tax credit.

What is a debit note under GST?

A debit note is a document issued by a registered dealer to another registered dealer when there is an increase in the value of the supply. It is issued when the supplier has charged a lower amount of tax on the original tax invoice. The debit note must be issued within the same financial year in which the original tax invoice was issued. The debit note must contain the following details:

Name, address, and GSTIN of the supplier
Name, address, and GSTIN of the recipient
Original invoice number and date of issuance
Original value of goods or services supplied
The amount of GST charged on the original invoice
New value of goods or services supplied
The rate of GST charged on the new value
The amount of GST charged on the new value

A debit note is also an essential document for claiming input tax credit.

What is a credit note under GST?

A credit note is a document issued by a registered dealer to another registered dealer when there is a decrease in the value of the supply. It is issued when the supplier has charged a higher amount of tax on the original tax invoice. The credit note must be issued within the same financial year in which the original tax invoice was issued. The credit note must contain the following details:

Name, address, and GSTIN of the supplier
Name, address, and GSTIN of the recipient
Original invoice number and date of issuance
Original value of goods or services supplied
The amount of GST charged on the original invoice
New value of goods or services supplied
The rate of GST charged on the new value
The amount of GST charged on the new value

A credit note is an essential document for the recipient to claim a refund of the excess tax paid in the original tax invoice. It is also necessary for the supplier to reduce his tax liability.

Conclusion:

The tax invoice, debit note, and credit note are essential documents under the GST system. All registered dealers must adhere to the rules and regulations while issuing these documents. The tax invoice is issued when goods or services are supplied, and it contains all the necessary details of the transaction. The debit note is issued when there is an increase in the value of the supply, and the credit note is issued when there is a decrease in the value of the supply.