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  7. Tax Invoices in Special Cases under GST

Tax Invoices in Special Cases under GST

Updated on: 04 Nov, 2024 02:46 PM

An invoice is an instrument or a document issued by the supplier to the recipient of goods or services. As per the GST law, there is a set of definitive rules on the format of an invoice and when it must be issued. However, there are certain exceptions. The tax invoices can have different formats in some special cases. In this guide, we will explore the tax invoice formats that are acceptable in certain special cases.

Contents

Under GST regime, Tax invoice is a very significant document It indicates the amount of GST and is also vital to claim input tax credit.

The prescribed format of Tax invoice under GST is mentioned under Rule 46. However, some relaxation and additional requirement is given in format of Tax invoice in some cases which is

  • Supply made by Banks, Insurance companies or financial institutions
  • Supply made by Goods Transport Agency
  • Supply made in case of passenger Transport service
  • Supply made by Input Service Distributor

Input Service Distributor

An Invoice or ISD credit note contains slightly different details than a standard GST invoice. It must include the following:

  • Name, address, and GSTIN of the Input Service Distributor (ISD).
  • Unique serial number for the invoice/credit note, numbered consecutively for each financial year. This can include letters, numbers, and special characters like hyphens or dashes.
  • Date of issue
  • Name, address, and GSTIN of the credit recipient.
  • Credit amount distributed
  • Authentication by the input service provider or an authorized representative, either by signature or digital signature.

Exceptions: If the ISD is a Banking Company, Financial Institution, or NBFC, any document containing the details above can serve as the tax invoice and doesn’t need to be serially numbered.

If the registered person shares the same PAN and state code as the ISD, they can issue an invoice, credit note, or debit note to transfer the credit from common input services to the ISD. This document should include:

  • Name, address, and GSTIN
  • Serial number, unique within the financial year, with up to 16 characters including letters, numbers, or special characters.
  • Date of issue
  • GSTIN of the common service supplier
  • Original invoice number whose credit is being transferred
  • Name, address, and GSTIN of the Input Service Distributor
  • Taxable value, rate, and credit amount to be transferred
  • Physical signature or digital signature of the registered person or an authorized representative

Tax Invoices for Insurance, Banking, or Financial Institutions

Any supplier who is a -

  • A banking company
  • An insurer
  • A financial institution
  • Or a Non-banking Financial Company

They may issue a consolidated tax invoice for all supplies made during the month on a monthly basis. Consolidated invoice may be issued

  • Physically or
  • Electronically

and may be signed or digitally signed
Tax invoice is not necessarily required to have a serial number on it.
Address of recipient is also not mandatory on such tax invoice.

Any other document containing all the information prescribed for a tax invoice is also acceptable. This invoice can be issued physically or electronically.

However, the relaxation shall be available in case of

  • Bill of supply
  • Debit Note
  • Credit Note
  • Payment Voucher
  • Receipt Voucher
  • Refund Voucher

Tax Invoice for Goods Transport Agency

GTA, or Goods Transport Agency, shall issue a tax invoice which shall contain information as specified under Rule 46 and some additional information such as:

  • The gross weight of the consignment
  • Name of the consignor and the consignee
  • Registration no. of the vehicle
  • Details of goods that are transported
  • Details of place of origin and destination
  • GSTIN of person who is liable to pay tax whether (Consignor), the person receiving the goods ( Consignee), or GTA

Tax Invoice for Passenger Transport Services

Where the supplier of taxable service is supplying passenger transportation service, a tax invoice shall be issued in a ticket form. In the case of passenger transport service, following relaxation is given:

  • Tax invoice is not necessarily required to have a serial number on it.
  • The address of the recipient is not required on such a tax invoice.

Apart from the above, the tax invoice shall contain all other details mentioned in the format of tax invoice under Rule 46.

The ticket may be issued physically or electronically, and it may be signed or digitally signed. There is no need for a signature in case it is issued electronically.

Tax invoice for e-Commerce Operator/ Supplier of OIDAR Services

A tax invoice issued by an e-commerce operator or a supplier of OIDAR (Online Information and Database Access or Retrieval) services to an unregistered buyer must include:

  • Name and address of the recipient
  • PIN code
  • Name of the state

Tax invoicing is an important process under GST as it helps keep track of GST transactions and assists in GSTR filing. However, understanding GST compliances can be complicated, especially for non-experts. Don’t worry! Whether you have a tax query or need help with GSTR filing, ITR filing, or any other tax-related service, our experts have got you covered. Book a tax expert now!

Frequently Asked Questions (FAQs)

Q- Is it mandatory to maintain serial no. on Invoice?

Serial no. is mandatorily required to maintain on invoice except in case when supplier is a bank, NBC, Insurer, Financial Institution and supplier who is providing passenger transportation service.

Q- Can an unregistered person issue Tax Invoice?

Tax invoice can be issued by a registered person only

Q- Can we claim the input tax credit without Tax invoice

To claim the input tax credit under GST, it is mandatory to have Tax invoice.

Q-Under which circumstances, tax invoice is not required to be issued ?

Tax Invoice is not required to be issued in case value of supply is less than Rs. 200/-.

Q- What is a tax invoice in special cases?

A tax invoice is a legal document that details the goods or services provided, the amount due, and the applicable GST. It serves as proof of the transaction between the supplier and recipient and is essential for claiming input tax credit under India’s GST system.

Q- What are the rules for tax invoice as per GST?

A tax invoice is typically issued to charge GST and transfer the input tax credit (ITC). A GST invoice must include the following mandatory details:

  • Invoice number
  • Invoice date
  • Customer name
  • Shipping and billing address
  • Customer and taxpayer’s GSTIN (if registered)
  • Place of supply
  • HSN code/SAC code
  • Item details: description, quantity, unit (e.g., meter, kg)
  • Total value
  • Taxable value and discounts
  • GST rate and tax amounts (CGST, SGST, IGST)
  • Reverse charge applicability
  • Supplier’s signature

For unregistered recipients: If the invoice value exceeds Rs. 50,000, it must also include:

  • Name and address of the recipient
  • Delivery address
  • State name and code

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CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.