Time Limit to Issue Invoices, Bill of Supply, Debit Notes, Credit Notes etc under GST

As a small or medium business owner in India, it is important to understand the time limits for issuing invoices, bills of supply, debit notes, and credit notes under the Goods and Services Tax (GST) regime. These time limits are set by the GST Council to ensure timely compliance and smooth functioning of the GST system. In this article, we will discuss all the time limits related to these documents under GST.

Time limit for issuing invoices under GST

As per the GST law, a registered person is required to issue a tax invoice for all taxable supplies made to another registered person. The time limit for issuing an invoice is as follows:

In case of supply of goods, the invoice must be issued before or at the time of delivery of goods or making the goods available to the recipient.
In case of supply of services, the invoice must be issued within 30 days from the date of supply of services.

If the supplier fails to issue the invoice within the time limit, he may be liable to pay a penalty.

Time limit for issuing bills of supply under GST

A bill of supply is issued by a registered person when the supply made is exempt from tax or the supplier is under the composition scheme. The time limit for issuing a bill of supply is as follows:

In case of supply of goods, the bill of supply must be issued before or at the time of delivery of goods or making the goods available to the recipient.
In case of supply of services, the bill of supply must be issued within 30 days from the date of supply of services.

If the supplier fails to issue the bill of supply within the time limit, he may be liable to pay a penalty.

Time limit for issuing debit notes and credit notes under GST

A debit note is issued by a registered person when there is an increase in the tax liability, while a credit note is issued when there is a decrease in the tax liability. The time limit for issuing debit notes and credit notes is as follows:

A registered person must issue a debit note or credit note within the following time limits:
In case of discovery of any deficiency in the invoice already issued, the registered person must issue a debit note within the time limit prescribed for issuing invoices.
In case of discovery of any incorrect particulars in the invoice already issued, the registered person must issue a credit note within the time limit prescribed for issuing invoices.
Any other case, debit note or credit note must be issued before the due date of furnishing the GST return for the month of September following the end of the financial year to which such invoice relates or the date of filing of the relevant annual return, whichever is earlier.

If the supplier fails to issue the debit note or credit note within the time limit, he may be liable to pay a penalty.

Conclusion

It is important for small and medium business owners in India to understand the time limits for issuing invoices, bills of supply, debit notes, and credit notes under GST. Non-compliance with these time limits may result in penalties, and it may also lead to complications in the GST system. By following the prescribed time limits, business owners can ensure smooth functioning of their business and avoid any unnecessary penalties.