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Tax Invoice

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  SEC 34 : Credit and Debit Notes Where   Ü  been issued for supply of any goods or services or both One or more tax invoices have 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 Ü  where the goods supplied are returned by the recipient, or Ü  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 one or more credit notes for supplies made in financial year   containing such particulars as may be prescribed. (1) CGST Rules 2017 Rule 53 - Credit and Debit NotesParticulars of Credit and Debit Notes - discussed later  Any registered in relation to a supply of goods or services or  person who issues a credit note 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 Ü  September following the end of the financial year in which such supply was made, or Ü  the date of furnishing of the relevant annual return, , and whichever is earlier   the tax liability shall be adjusted in such manner as may be prescribed: (2) Proviso 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. Amended by CGST Amendment Act, 2018 Tax Invoice  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. (4) Explanation For the purposes of this Act, the expression “debit note” shall include a supplementary invoice. Where One or more tax invoice have  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 One or more debit notes for supplies made in a financial year  containing such particulars as may be prescribed. (3) CGST Rule2017 Rule 53 - Credit and Debit NotesParticulars of Credit and Debit Notes - discussed later V’Smart Academy  www.vsmartacademy.com CA Vishal Bhattad 09850850800    61  1. One or more credit/ debit notes can be issued for multiple invoices [Subsections (1) and (3) of section 34 of the CGST Act] Prior Amendment:-  Earlier, a credit/debit note, which is issued by the registered person under section 34, was required to be issued invoice-wise. This used to cause avoidable compliance burden for tax payers. Amendment :-  The section 34(1) allow the registered person to issue one (consolidated) or more credit notes in respect of multiple invoices issued in a financial year without linking the same to individual invoices. Similarly, section 34(3) has been amended to allow the registered person to issue one (consolidated) or more debit notes in respect of multiple invoices issued in a financial year without linking the same to individual invoices. Impact:-  This will avoid compliance burden on tax payers Q. 14: (N/N 3/2019-CT dt Explain the particulars to be stated in a credit or debit note [sec 34 read with rule 53(1A)]29/01/2019) ?Ans. : (a)(b)(c)(d)(e)(f)(g)(h)(i)name, address and Goods and Services Tax Identification Number of the supplier;nature of the document;a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters-hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year;date of issue of the document;name, address and Goods and Services Tax Identification Number or UniqueIdentity Number, if registered, of the recipient;name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is un-registered;serial number(s) and date(s) of the corresponding tax invoice(s) or, as the case may be, bill(s) of supply;value of taxable supply of goods or services, rate of tax and the amount of the tax credited or, as the case may be, debited to the recipient; andsignature or digital signature of the supplier or his authorised representative.”   Newly inserted Comment:-  As earlier rule 53 was common for both tax invoice and incase of debit or credit notes as refer in sec 34 but now as per N/N 3/2019 as new sub rule 1A of rule 53 has been inserted which is stated as above in which all particulars to be given in relation to issue debit or credit note. New Contents for Credit and Debit Note Significant Notifications/ Circulars/ Orders 1. Signature/ digital signature of the supplier/ his authorised representative not required on (i) electronic tax invoice, (ii) electronic bill of supply, (iii) electronic consolidated tax invoice in case of banking companies etc. and (iv) electronic ticket for passenger transportation service [Rules 46, 49 and 54 of the CGST Rules] Rule 46- Tax Invoice for supplier of Goods and Services Proviso  Provided also that a registered person may not issue a tax invoice in accordance with the provisions of clause (b) of sub-section (3) of section 31 subject to the following conditions, namely,-(a) the recipient is not a registered person; and(b) the recipient does not require such invoice, and shall issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies . V’Smart Academy www.vsmartacademy.com CA Vishal Bhattad 09850850800   62  Proviso  Provided also that the signature or digital signature of the supplier or his authorized representative shall not be required in the case of issuance of an electronic invoice in accordance with the provisions of the Information Technology Act, 2000    (74/2018-CT dt 31/12/2018) Rule 49- Bill of Supply Proviso  Provided that the provisos to rule 46 shall, mutatis mutandis, apply to the bill of supply issued under this rule:Provided further that any tax invoice or any other similar document issued under any other Act for the time being in force in respect of any non-taxable supply shall be treated as a bill of supply for the purposes of the Act  Provided also that the signature or digital signature of the supplier or his authorised representative shall not be required in the case of issuance of an electronic bill of supply in accordance with the  provisions of the Information Technology Act, 2000 (74/2018-CT dt 31/12/2018) Tax invoices in Special Cases (Rule 54) Supplier of taxable serviceInsurer/Bankingcompany/Financialinstitution, including NBFCDocument in lieu of the tax invoice Optional information Mandatory information ã Serial number ã Address of the recipient of taxable serviceOther information as prescribed for a Tax Invoice, under rule 46Such document may be issued/ made available, physically/electronically Goods Transport Agency (GTA)supplying servicesin relation totransportation of goods by road ina goods carriage Gross weight of the consignment Name of the consignor and the consigneeRegistration number of goods carriage in which the goods are transportedDetails of goods transportedDetails of place of srcin and destinationGSTIN of the person liable for paying tax whether as consignor, consignee or GTAOther information as prescribed for a tax invoice, under rule 46 Note : It is important to note here that keeping in view the large number of transactions in banking, insurance and passenger transportation section, taxpayers need not mention the address of the customer and the serial number in their invoices. The said supplier may issue a consolidated  tax invoice or any other document in lieu thereof, by whatever name called( for supply of services made during a month at the end month  ) Provided that the signature or digital signature of the supplier or his authorised representative shall not be required in the case of issuance of a consolidated tax invoice or any other document in lieu thereof in accordance with the provisions of the Information Technology Act, 2000 (N/N 74/2018 CT dt 31/12/2018) Newly inserted Supplier of  passenger transportation service ã Serial number ã Address of the recipient of taxable service Other information as prescribed for a tax invoice, under rule 46Tax invoice shall include ticket in any form, by whatever name called. Provided that the signature or digital signature of the supplier or his authorised representative shall not be required in the case of issuance of ticket in accordance with the provision of the Information technology act, 2000 (N/N 74/2018 CT dt 31/12/2018) Newly inserted V’Smart Academy  www.vsmartacademy.com CA Vishal Bhattad 09850850800    63  Taxable Persons offering various promotional schemes to increase sales volume and to attract new customers for their products. Some of these schemes like Free samples and gifts, Buy one get one free offer, Discounts including 'Buy more, save more' offers etc. in respect of tax treatment of this have been examined by the CBIC vide Circular No. 92/11/2019-GST dated 07/03/2019Promotional SchemeTreatment Under GSTExampleDiscounts including 'Buy more, save more' offers Ÿ Value of Supply -  As per sec 15(3) of CGST  Act - Discounts offered by the suppliers to customers (including staggered discount under 'Buy more, save more” scheme and post supply/ volume discounts established before or at the time of supply) shall be excluded to determine the value of supply  provided they satisfy the parameters of the provisions, including the reversal of ITC by the recipient of the supply as is attributable to the discount on the basis of document(s) issued by the supplier. Ÿ ITC -Supplier shall be entitled to avail the ITC for such inputs, input services and capital goods used in relation to the supply of goods or services or both on such discounts Ÿ XYZ Ltd offers staggered discount to his customers (increase in discount rate with increase in purchase volume) i.e. get 10 % discount for purchases above Rs. 5000/-, 20% discount for purchases above Rs. 10,000/- and 30% discount for purchases above Rs. 20,000/-. Such discounts are shown on the invoice itself & hence as per sec 15(3) of CGST Act are allowed to be excluded from the value of supply. Big Discount Offer On Purcharseof 5000 10% Discount On Purcharse of 20,000 25% Discount On Purcharse of 10,000 15% Discount  MANO MANO YANA UPTO 50% OFFLatest Style Ÿ Secondary Discounts - Issue:-  That whether credit notes(s) under section 34(1) of the CGST  Act can be issued In such cases even if the conditions laid down in section 15(3)(b) of the CGST Act are not satisfied. Ÿ financial / commercial credit note(s) can be issued by the supplier even if the conditions mentioned in section 15(3)(b) of the CGST  Act are not satisfied. In other words, credit note(s) can be issued as a commercial transaction between the two contracting parties. Ÿ It is further clarified that such secondary discounts shall not be excluded while determining the value of supply as such discounts are not known at the time of supply and the conditions laid down in section 15(3)(b) of the CGST Act are not satisfied. Ÿ Value of supply shall not include any discount by way of issuance of credit note(s) as explained above or by any other means, except in cases where the provisions contained in Section 15(3)(b) of the CGST  Act are satisfied. Ÿ There is no impact on availability or otherwise of ITC in the hands of supplier in this case.M/s A supplies 10000 packets of biscuits to M/s B at Rs. 10/- per packet. Afterwards M/s  A re-values it at Rs. 9/- per packet. Subsequently, M/s A issues credit note to M/s B for Rs. 1/- per packet. V’Smart Academy www.vsmartacademy.com CA Vishal Bhattad 09850850800   64

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Oct 8, 2019
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