CHAPTER-14      
                                                                           TAX INVOICE
       An invoice is a document issued by supplier of goods and services to a recipient and describes the
       various details like parties involved ; description of item sold /services supplied, price and discount
       ,date etc. It means in the case of supply of goods & provision of services ,an invoice is raised by the
       supplier to the recipient of the same .Under GST an invoice means “Tax invoice”.The tax invoice has
       the following significance under GST taxation system :
         (a) Ensures Transparency : The issuance of invoice for every taxable transaction is a pre-
          requisite to ensure transparency .This in turn ,ensures the tax compliances also.
         (b) ITC Availibility: A registered person cannot avail the benefit of ITC unless he is in possession
          of a tax invoice or debit note .  
         (c) Evidence of Transaction : The tax invoice indicates the detail of transaction .It has two fold
          effects .On the one hand ,an invoice serves as a demand for payment and on the other hand it
          reflects the document of title especially when the price has been paid in full.
         (d) Invoice matching mechanism:In the case of taxable supply of goods and services the
          registered taxable person is required to furnish,details of outward supplies in his e-return(Form
          GSTR-1)
         (e) Invoice under GST:
         (f) GST requires that a tax invoice or bill of supply to be issued before or on the
          occurrence of certain event or within a prescribed time. Therefore, an invoice is
          required for every other form of supply such as transfer, barter, exchange, license,
          rental, lease or disposal.
         (g) GST allows seamless flow of Input Tax Credits (ITC) across the supply chain. One of
          the fundamental pillars of GST is checking the Input Tax Credit (ITC) Claims, for
          which data of all Invoices to be uploaded and matched. GST system is backed up by
          strong IT support from Goods and Services Tax Network (GSTN) for matching such
          data. GSTN seeks all registered dealers shall file Invoice wise details in order to do
          such matching.
         (h) Tax Invoice:
         (i) Every registered taxable person under GST supplying Goods or services is required to
          issue a tax invoice for all supplies effected. The word “Every registered Taxable
                         person” clearly specifies that issuing Tax Invoice is compulsory under GST law.
                         However, government may notify some other document for certain category of
                         services. Eg. Bus ticket, Bank Voucher etc.,
                     (j) Bill of Supply:
                     (k) A supplier supplying exempted goods or service or a supplier who has opted for
                         composition levy scheme has to issue a bill of supply instead of a tax invoice. A bill of
                         supply is not eligible for claiming input tax credits.
                     (l) Tax Invoice Vs. Bill of Supply
                     (m)I will hereby highlight few differences between a bill of supply and Tax Invoice before
                         diving deep.
                                    Tax Invoice                                   Bill of Supply
                  Who   has   to    Taxable Supplier who is supplying Taxable     Supplier of Exempt Goods or services
                  issue?            goods or Taxable Services.                    and Composition Tax payer
                  When   need Need not issue a  Tax Invoice if the value of       Need not issue a bill of supply if the
                  not be issued     the goods or services supplied is less than   value of the goods or services supplied
                                    ₹200/- and recipient is unregistered .(Need   is less than ₹200/-.(Need to prepare one
                                    to prepare one aggregate Invoice for each     aggregate BOS for each day)
                                    day)
                  Can Input Tax     Input Tax Credit(ITC) can be claimed based    Input   Tax   Credit(ITC)   cannot   be
                  claimed?          on Tax Invoice                                claimed based on ‘Bill of Supply’
                     (n) When Tax Invoice shall be issued?
        (o)
        (p) *If supplier is a bank or NBFC or any financial institution, then within 45 days from
          the supply of service.
        (q) Manner of issuing
                         (r) Prescribed Particulars of a Tax Invoice:
                         (s) A) A tax invoice issued by the supplier shall contain the following details:-
                      a.      Type of Invoice (Tax Invoice, Revised Invoice or Supplementary Invoice)
                      b.      Name, address and GSTIN of the supplier
                      c.      A consecutive serial number unique for a financial year (can have alphabets and/or numerals or
                              “–“ and “/” and any combination thereof)
                      d.      Date of  issue of Invoice
                      e.      Name, address and GSTIN/ Unique ID Number, if registered, of the recipient
                      f.      Name and address of the recipient and the address of delivery, along with the name of State and its
                              code, if such recipient is unregistered and where the taxable value of supply is fifty thousand
                              rupees or more.
                      g.      HSN code of goods or Accounting Code of services.(Council may issue notification to specify
                              number of digits to be mentioned by each class of persons)
                      h.      Description of goods or services.
                      i.      Quantity in case of goods and unit or Unique Quantity Code thereof.
                      j.      Total value of goods or services.
                      k.      Taxable value of goods or services taking into account discount or abatement, if any.
                      l.      Rate of tax (CGST, SGST/UTGST, Cess or IGST)
                      m.      Amount of tax charged in respect of taxable goods or services (CGST, SGST/UTGST, Cess or
                              IGST)
                      n.      Place of supply along with the name of State, in case of a supply in the course of inter-State trade
                              or commerce