TAX INVOICE, CREDIT AND DEBIT NOTES
31. Tax Invoice.
(1) A registered person supplying taxable goods shall, before or at
the time of,––
(a) removal of goods for supply to the recipient, where the supply
involves movement of goods ; or
(b) delivery of goods or making available thereof to the recipient, in
any other case, issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed :
Provided that 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.
(2) A registered person supplying taxable services shall, before or after
the provision of service but within a prescribed period, issue a tax invoice,
showing the description, value, tax charged thereon and such other particulars
as may be prescribed :
Provided that the Government may, on the recommendations of the
Council, by notification and subject to such conditions as may be mentioned
therein, 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.
(3) Notwithstanding anything contained in sub-sections (1) and (2)––
(a) a registered person may, within one month from the date of
issuance of certificate of registration and in such manner as may be
prescribed, issue a revised invoice against the invoice already issued
during the period beginning with the effective date of registration till
the date of issuance of certificate of registration to him ;
(b) a registered person may not issue a tax invoice if the value of the
goods or services or both supplied is less than two hundred rupees
subject to such conditions and in such manner as may be prescribed ;
(c) a registered person supplying exempted goods or services or
both or paying tax under the provisions of section 10 shall issue, instead
of a tax invoice, a bill of supply containing such particulars and in such
manner as may be prescribed :
Provided that the registered person may not issue a bill of supply if
the value of the goods or services or both supplied is less than two
hundred rupees subject to such conditions and in such manner as may
be prescribed ;
(d) a registered person shall, on receipt of advance payment with
respect to any supply of goods or services or both, issue a receipt voucher
or any other document, containing such particulars as may be prescribed,
evidencing receipt of such payment ;
(e) where, on receipt of advance payment with respect to any supply
of goods or services or both the registered person issues a receipt
voucher, but subsequently no supply is made and no tax invoice is issued
in pursuance thereof, the said registered person may issue to the person
who had made the payment, a refund voucher against such payment ;
(f) a registered person who is liable to pay tax under sub-section (3)
or sub-section (4) of section 9 shall issue an invoice in respect of goods or
services or both received by him from the supplier who is not registered
on the date of receipt of goods or services or both ;
(g) a registered person who is liable to pay tax under sub-section (3)
or sub-section (4) of section 9 shall issue a payment voucher at the time
of making payment to the supplier.
(4) In case of continuous supply of goods, 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 case may be,
each such payment is received.
(5) Subject to the provisions of clause (d) of sub-section (3), in case of
continuous supply of services,––
(a) where the due date of payment is ascertainable from the contract,
the invoice shall be issued on or before the due date of payment ;
(b) where the due date of payment is not ascertainable from the
contract, the invoice shall be issued 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, the
invoice shall be issued on or before the date of completion of that event.
(6) In a case where the supply of services ceases under a contract before
the completion of the supply, 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.
(7) Notwithstanding anything contained in sub-section (1), where the
goods being sent or taken on approval for sale or return are removed before
the supply takes place, the invoice shall be issued before or at the time of
supply or six months from the date of removal, whichever is earlier.
Explanation.––For the purposes of this section, the expression “tax
invoice” shall include any revised invoice issued by the supplier in respect of
a supply made earlier.
32. Prohibition of unauthorised collection of tax
(1) A person who is not a registered person shall not collect in
respect of any supply of goods or services or both any amount by way of tax
under this Act.
(2) No registered person shall collect tax except in accordance with the
provisions of this Act or the rules made thereunder.
33. Amount of tax to be indicated in tax invoice and other documents
Notwithstanding anything contained in this Act or any other law
for the time being in force, where any supply is made for a consideration,
every person who is liable to pay tax for such supply shall prominently indicate
in all documents relating to assessment, tax invoice and other like documents,
the amount of tax which shall form part of the price at which such supply is
made.
34. Credit and debit notes .
(1) Where a tax invoice has been issued for supply of any goods or
services or both and the taxable value or tax charged in that tax invoice is
found to exceed the taxable value or tax payable in respect of such supply, or
where the goods supplied are returned by the recipient, or where goods or
services or both supplied are found to be deficient, the registered person,
who has supplied such goods or services or both, may issue to the recipient a
credit note containing such particulars as may be prescribed.
(2) Any registered person who issues a credit note in relation to a supply
of goods or services or both shall declare the details of such credit note in the
return for the month during which such credit note has been issued but not
later than September following the end of the financial year in which such
supply was made, or the date of furnishing of the relevant annual return,
whichever is earlier, and the tax liability shall be adjusted in such manner as
may be prescribed :
Provided that, no reduction in output tax liability of the supplier shall
be permitted, if the incidence of tax and interest on such supply has been
passed on to any other person.
(3) Where a tax invoice has been issued for supply of any goods or services
or both and the taxable value or tax charged in that tax invoice is found to be
less than the taxable value or tax payable in respect of such supply, the
registered person, who has supplied such goods or services or both, shall
issue to the recipient a debit note containing such particulars as may be
prescribed.
(4) Any registered person who issues a debit note in relation to a supply
of goods or services or both shall declare the details of such debit note in the
return for the month during which such debit note has been issued and the
tax liability shall be adjusted in such manner as may be prescribed.
Explanation.––For the purposes of this Act, the expression “debit note”
shall include a supplementary invoice.