What is Tax Invoice and time limit to issue tax invoice under GST

What is tax invoice

Tax invoice is a document which is issued by registered person (as per GST Act) for supply of taxable goods.

When we need to issue a tax invoice in case of supply of goods: –

If movement of goods is involved, then tax invoice should be raised before making such movement.
If supply movement of goods is not required, then tax invoice should be raised at time the goods are delivered to the recipient or goods are made available to him.
In case of goods sent on approval basis, the tax invoice needs to be issued when approved or end of 6 months from the date of removal.

Exception for raising tax invoice:

The taxpayer may not issue tax invoice, if value of good or services is less than Rs 200.
Composition taxpayer should not raise tax invoice, instead he should raise a bill of supply.

Time limit for raising tax invoice for supply of service:

As per the GST Rule 31 (2) read rule no -46 Tax invoice in case of taxable supply need to be issued with in a period of 30 days from the date of supply is generated.

But for Financial Institution like Banking Companies or NBFC (Non-Banking Financial Company) can be issue tax Invoice within 45 days from the date of supply of services.

Manner of issue tax invoice as per GST act 31(1) read rule no 48 (1)

1. Tax Invoice in case of supply of good

Original copy issued to the buyer (recipient) and should be marked as “Original for the recipient”.
Duplicate copy issue for Transporter.
Triplicate copy issue for supplier.

2. Tax Invoice in case of supply of Services

Original copy issue for the original buyer (recipient).
Duplicate copy issue for supplier.

Important content of tax invoices

1 GSTIN of supplier

2 Consecutive Serial Number & Date of issue tax invoice

3 GSTIN of Recipient if registered

4 Name & Address of Recipient, if not registered person

5 HSN CODE in case of Good of supply

6 SAC CODE in case of supply of service

7 Description of good or services

8 Quantity in case of good and Total value of supply

9 Taxable values of supply & Goods

10 Tax Rate CGST & SGST & IGST & CESS

11 Place of supply address mentioned also mentioned consigner and consignee address

12 Mentioned the detail if tax paid on RCM basis

13 Bank details of Authorized signatory

14 Signature or stamp of Authorized signatory

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