Time of Issue of Tax Invoice for Supply of Goods and Supply of Service have been separately dealt with under various sub-sections of Section 31 of the CGST/SGST Act and as such, these have been separately discussed hereunder :
(A) Time of Issue of Tax Invoice for ‘Supply Of Goods’ under Section 31 of CGST / SGST Act, 2017
(1) Registered
person supplying taxable goods [Section 31(1)] |
Tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed shall be issued by the supplier of taxable goods as under—
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where the supply involves movement of goods — before or at the time of removal of goods for supply to the recipient; or
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in any other case — before or at the tune of delivery of goods or making available thereof to the recipient.
The Government may, on the recommendations of the Council, by notification, specify the categories of goods or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed. [Proviso to section 31(1)] |
(2) Continuous supply of goods [Section 31(4)] |
Where successive statements of accounts or successive payments are involved—
— the invoice shall be issued before or at the time each such statement is issued or. as the ease may be, each such payment is received. |
(3) Goods sent or taken on approval for sale or return are removed before the supply takes place [Section 31(7)] |
The invoice shall be issued—
— before or at the time of supply
or
— 6 months from the date of removal,
whichever is earlier.
Example :
(A) R, a registered person sends goods to G on 10.9.2018 on approval or return basis. G gives his approval to the goods on 20.11.2018. In this case, the invoice should be issued on:
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20.1 1.2018 (date of approval is taken as the time of supply)
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9.3.2019 i.e. 6 months from the date of removal
whichever is earlier.
Therefore, the invoice should be issued on 20.11.2018.
(B) What will be the answer if the approval is given by G on 20.4.2019 instead of 20. 11.2018 ?
In this case 6 months from the date of removal ends on 9.3.20 19 i.e. before the time of supply on 20.4.2019. Therefore, the invoice should be issued on 9.3.2019. |
(B) Time of Issue of Tax Invoice for ‘Supply Of Services’ under Section 31 of CGST / SGST Act, 2017
(1) Registered
person supplying taxable services [Section 31(2)] |
Tax invoice showing the description, value, tax charged thereon and such other particulars as may be prescribed shall be issued by supplier of taxable services—
before or after the provision of service but within 30 days from the date of
supply of service [45 days in case of an insurer or banking company or financial institution, including a non-banking financial company (NBFC)].
The Government may. on the recommendations of the Council, specify the categories of services in respect of which—
(a) Any other document issued in relation to the supply shall be deemed to be a tax invoice; or
(b) Tax invoice may not be issued. [Proviso to section 31(2)] |
(2) Continuous supply of services [Section 31(5)] |
Tax invoice shall be issued,—
(a) where the due date of payment is ascertainable from the contract,— on or
before the due date of payment:
(b) where the due date of payment is not ascertainable from the contract, — before or at the time when the supplier of service receives the payment:
(c) where the payment is linked to the completion of an event, — on or before the date of completion of that event.
Example :
Manish, a Chartered Accountant in practice enters into an agreement on 1.10.2018 with RG L.td. to provide consultancy services for a period of one year for a t& of Rs. 6,00,000. The due date of payment is 10th of every month, the first payment becoming due on 10.11.2018. In this case, a invoice shall be issued on or before 10th of the every month starting from 10th November 2018.
In the above case, if the due date of payment is not ascertainable, the invoice will be raised at the time he receives the payment. |
(3) Cessation of supply of services under a contract before the completion of
supply [Section 31(6)] |
The invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply made before such cessation.
Example :
On 01.112018 R agrees to supply ‘Commercial Training and Coaching Services’ to G on daily basis for a period of three months. However, after 45 days. due to some unavoidable reasons, the aforesaid services could not be supplied by R.
In the above case, R shall be required to issue the invoice at the time when the supply ceases. Further, such invoice shall be issued to the extent of the supply made for 45 days only. |
(C) Consolidated Tax Invoice — If value of Each Supply is Less than Rs. 200 [Section 31(3)(b) and Proviso to Rule 46]
Registered person may not issue tax invoice for each supply of goods or services if value of goods and services or both per invoice is less than Rs. 200 but can issue a
consolidated tax invoice at close of each day [Section 31(3)(b)] |
Registered person may issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies provided the following conditions are satisfied.
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the recipient is not a registered person.
and
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the recipient does not require such invoice.
Tax invoice shall have to be issued if any of the above conditions is not satisfied, |
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