What is the time limit to issue GST invoices?

Under the GST law, all invoices, revised bills, and debit notes must be filed on a specific deadline, much like any other government procedure. It is recommended to always stick to the deadline. Busy Accounting Software can help with the issuance of invoices hassle-free.

What is a tax invoice?

An invoice is a document to record the transaction of goods and services. One of its functions is to maintain a timely transaction entry to enable the individual to claim an input tax credit. 

A tax invoice is a document that a registered taxable individual and includes must issue:

• A description of the goods or services.

• The value.

• Tax.

• Other information at the time of supply.

It is a record used to compute taxes on commodities and services and serves as evidence of the supply of those goods and services.

Under GST, however, an invoice is referred to as a document issued by the input service distributor (ISD) to encapsulate any revised invoice or any additional supplementary. 

Who should raise invoices?

Any person who supplies taxable goods must issue invoices that include a description, quantity, and value of the goods and the tax rates charged for the same.

What should an invoice contain?

• Name, address and GSTIN of the supplier.

• A consecutive serial number consists of only alphabets and numerals, unique for a particular financial year.

• Date of issue of the invoice.

• Name, address and GSTIN of the recipient, if registered.

• Name and address of the recipient, the name of the state and its code, and the address for delivery.

• Description of the goods and service

• HSN code of the goods or accounting code of the service.

• Quantity in case of goods and units or Unique Quantity Code.

• The total value of goods or services.

• If applicable, the taxable value of goods or services after calculation of discount or reduction.

• Rate of tax (CGST, SGST or IGST).

• In the case of inter-state supply, the place of supply and state name.

• Amount of tax charged for taxable goods or services.

• Place of delivery if it differs from the place of supply.

• If the tax is payable on reverse charge.

• Where applicable, the words 'revised invoice' or supplementary invoice' are prominently displayed, along with the original invoice's date and number.

• Digital signature or signature of the supplier or an authorized representative.

Time limit to issue of tax invoice for supply of goods 

The supply of goods can be divided into two categories:

• Normal case 

• Continuous supply of services 

Supply of goods in normal case 

A registered person who supplies taxable goods must issue a tax invoice with the goods' description, quantity, value, and the tax charged.

• Where the supply involves the movements of goods: On or before the removal of goods from the supplier's location for supply to the buyer.

• Where the supply does not involve movements of goods: On or before the date the goods are delivered to the recipient.

In case of continuous supply of goods 

When there are multiple statements of accounts or payments, the invoice must be issued before or at the same time as each statement or payment is received.

The time limit for debit and credit note 

• On or before November 30th, following the end of the fiscal year in which such supply was made.

                                          or

• The date on which the relevant annual return for the fiscal year is due.