Understanding CGST Rules for Tax Invoices, Credit, and Debit Notes

The Goods and Services Tax (CGST) regulations include detailed provisions for issuing tax invoices, credit notes, and debit notes. Chapter VI of the CGST Rules outlines these crucial requirements for compliance.

Essential Components of a Tax Invoice

As per Rule 54, a registered individual must issue a tax invoice under Section 31, which must contain the following specific details:

• Supplier's name, address, and GST Identification Number.
• A unique, consecutive serial number, up to sixteen characters, combining alphabets, numerals, or special characters like hyphens, dashes, and slashes, specific to each financial year.
• Date of invoice issuance.
• Recipient's name, address, and GSTIN or Unique Identity Number, if registered.
• For unregistered recipients, if the taxable supply value is ₹50,000 or more: recipient's name, address, delivery address, State name, and code.
• For unregistered recipients, if the taxable supply value is less than ₹50,000 and the recipient requests it: recipient's name, address, delivery address, State name, and code.
• Harmonised System of Nomenclature (HSN) code for goods or services.
• Description of goods or services.
• Quantity of goods and their unit or Unique Quantity Code.
• Total value of the supply.
• Taxable value after considering any discounts or abatements.
• Applicable tax rates (Central Tax, State Tax, Integrated Tax, Union Territory Tax, or Cess).
• Amount of tax charged for taxable goods or services.
• Place of supply, including the State name, for inter-State trade or commerce.
• Delivery address if different from the place of supply.
• Indication if tax is payable on a reverse charge basis.
• Signature or digital signature of the supplier or their authorized representative.
• For invoices issued under CGST Rule 48(4), a Quick Response (QR) code with an embedded Invoice Reference Number (IRN) is required.
• For taxpayers with aggregate turnover exceeding the notified limit under CGST Rule 48(4) but issuing invoices not in the specified manner, a declaration stating that the invoice is not required to be issued under CGST Rule 48(4) must be included.

Further provisions allow the Board to specify the number of HSN code digits required for certain registered persons or exempt some classes from mentioning the HSN code. For supplies under Section 9(4) where the aggregate value exceeds ₹5,000 in a day, a registered person may issue a consolidated invoice at month-end instead of individual invoices. For exports, the invoice must include an endorsement like “SUPPLY MEANT FOR EXPORT ON PAYMENT OF INTEGRATED TAX” or “SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”, and list the recipient's name and address, delivery address, and country of destination. Additionally, a tax invoice may not be issued if the recipient is unregistered and does not require it, provided a consolidated invoice for such supplies is issued daily.

Deadline for Issuing Tax Invoices

For taxable service supplies, the invoice, as per CGST Rule 47, must generally be issued within thirty days from the service supply date. However, for suppliers like insurers, banking companies, financial institutions (including NBFCs), the deadline extends to forty-five days from the supply date.

Furthermore, these entities, along with telecom operators or other notified service suppliers making taxable supplies between distinct persons (as defined in Section 25), may issue the invoice before or at the time of recording it in their books of account, or before the end of the quarter in which the supply occurred.

CGST Rule 47A specifies that when a registered person is liable to pay tax under Section 9(3) or 9(4) and is required to issue an invoice as the recipient, they must do so within thirty days of receiving the goods or services.

Invoice Preparation Format

1. For Goods Supply: Invoices must be prepared in triplicate:

• Original: Marked “ORIGINAL FOR RECIPIENT”
• Duplicate: Marked “DUPLICATE FOR TRANSPORTER”
• Triplicate: Marked “TRIPLICATE FOR SUPPLIER”

2. For Services Supply: Invoices must be prepared in duplicate:

• Original: Marked “ORIGINAL FOR RECIPIENT”
• Duplicate: Marked “DUPLICATE FOR SUPPLIER”

The serial numbers of invoices issued during a tax period must be submitted electronically via the common portal in FORM GSTR-1/GSTR-1A.

Bill of Supply Requirements

A bill of supply, as per Section 31(3)(c), must be issued by the supplier with the following details:

• Supplier's name, address, and GSTIN.
• A unique, consecutive serial number, up to sixteen characters, specific to the financial year.
• Date of issue.
• Recipient's name, address, and GSTIN or Unique Identity Number, if registered.
• HSN Code for goods or services.
• Description of goods or services.
• Value of supply, accounting for discounts or abatements.
• Signature or digital signature of the supplier or their authorized representative.

The provisos of Rule 46 apply mutatis mutandis to bills of supply. Any tax invoice or similar document issued under other laws for a non-taxable supply will be considered a bill of supply under the GST Act.

Receipt Voucher Details

A receipt voucher, as per Section 31(3)(d), must include the following particulars:

• Supplier's name, address, and GSTIN.
• A unique, consecutive serial number, up to sixteen characters, specific to the financial year.
• Date of issue.
• Recipient's name, address, and GSTIN or Unique Identity Number, if registered.
• Number and date of the original receipt voucher issued under Rule 50.
• Description of goods or services for which the refund is made.
• Amount of refund.
• Applicable tax rates.
• Amount of tax charged.
• Place of supply with State name and code for inter-State commerce.
• Indication if tax is payable on a reverse charge basis.
• Signature or digital signature of the supplier or their authorized representative.

If the tax rate is not determinable at the time of advance receipt, tax is paid at eighteen percent. If the nature of supply is not determinable, it is treated as an inter-State supply.

Refund Voucher Details

A refund voucher, referred to in Section 31(3)(e), must contain these specifics:

• Supplier's name, address, and GSTIN.
• A unique, consecutive serial number, up to sixteen characters, specific to the financial year.
• Date of issue.
• Recipient's name, address, and GSTIN or Unique Identity Number, if registered.
• Number and date of the original receipt voucher issued under Rule 50.
• Description of goods or services for which the refund is made.
• Amount of refund.
• Applicable tax rates.
• Amount of tax paid for the goods or services.
• Indication if tax was payable on a reverse charge basis.
• Signature or digital signature of the supplier or their authorized representative.

Payment Voucher Details

A payment voucher, as per Section 31(3)(g), should contain the following:

• Supplier's name, address, and GSTIN (if registered).
• A unique, consecutive serial number, up to sixteen characters, specific to the financial year.
• Date of issue.
• Recipient's name, address, and GSTIN.
• Description of goods or services.
• Amount paid.
• Applicable tax rates.
• Amount of tax payable.
• Place of supply with State name and code for inter-State commerce.
• Signature or digital signature of the supplier or their authorized representative.

Revised Tax Invoices and Credit/Debit Notes

1. Revised Tax Invoice: Section 31 specifies that a revised tax invoice must include:

• The prominent text “Revised Invoice”.
• Supplier's name, address, and GSTIN.
• A unique, consecutive serial number, up to sixteen characters, specific to the financial year.
• Date of document issue.
• Recipient's name, address, and GSTIN or UIN (if registered).
• For unregistered recipients: recipient's name, address, delivery address, State name, and code.
• Serial number and date of the corresponding original tax invoice or bill of supply.
• Signature or digital signature of the supplier or their authorized representative.

Registered persons receiving registration retrospectively may issue revised tax invoices for taxable supplies made between the effective date of registration and the certificate issuance date. A consolidated revised tax invoice can be issued for all taxable supplies to an unregistered recipient during this period. For inter-State supplies not exceeding ₹2.5 lakh, a consolidated revised invoice can be issued separately for all unregistered recipients within a State.

Any invoice or debit note issued for tax payable under Sections 74, 129, or 130 must clearly state “INPUT TAX CREDIT NOT ADMISSIBLE”.

2. Credit or Debit Note: Section 34 of the CGST Act mandates that a credit or debit note include:

• Supplier's name, address, and GSTIN.
• Nature of the document.
• A unique, consecutive serial number, up to sixteen characters, specific to the financial year.
• Date of document issue.
• Recipient's name, address, and GSTIN or UIN (if registered).
• For unregistered recipients: recipient's name, address, delivery address, State name, and code.
• Serial number(s) and date(s) of the corresponding tax invoice(s) or bill(s) of supply.
• Value of taxable supply, tax rate, and the amount of tax credited or debited.
• Signature or digital signature of the supplier or their authorized representative.

Specific Invoice Requirements

1. Input Service Distributor (ISD) Invoice/Credit Note: An ISD invoice or credit note must contain:

• ISD's name, address, and GSTIN.
• A unique, consecutive serial number, up to sixteen characters, specific to the financial year.
• Date of issue.
• Name, address, and GSTIN of the recipient to whom credit is distributed.
• Amount of credit distributed.
• Signature or digital signature of the ISD or their authorized representative.

For banking companies or financial institutions operating as ISDs, a tax invoice may be any document, serially numbered or not, containing the above information.

2. Insurers, Banking Companies, Financial Institutions: These suppliers of taxable services may issue a tax invoice or any alternative document, physically or electronically, serially numbered or not, and without the recipient's address, provided it contains other details specified in Rule 46.

3. Goods Transport Agency (GTA): A GTA providing road transport services must issue a tax invoice or equivalent document detailing:

• Gross weight of the consignment.
• Name of the consigner and consignee.
• Registration number of the goods carriage.
• Details of goods transported.
• Place of origin and destination.
• GSTIN of the person liable for paying tax (consigner, consignee, or GTA).
• Other information as per Rule 46.

4. Passenger Transportation Service: For passenger transport services, a tax invoice can be a ticket in any format, serially numbered or not, and without the recipient's address, but must include other information as per Rule 46.

These provisions (sub-rules 2 and 4) also apply to documents issued under Rules 49, 50, 51, 52, or 53.

5. E-commerce Operators and OIDAR Services: For taxable services supplied by or through an e-commerce operator or a supplier providing Online Information and Database Access or Retrieval (OIDAR) services to an unregistered buyer, the tax invoice must include the recipient’s name, address, PIN code, and State name. This address is considered the recipient’s address on record, regardless of the supply value.

Transporting Goods Without an Invoice

In specific situations, a delivery challan may be issued instead of an invoice for transporting goods. These situations include:

• Supply of liquid gas where the exact quantity upon removal is unknown.
• Transportation of goods for job work.
• Transportation of goods for reasons other than supply.
• Other notified supplies by the Board.

This delivery challan must be serially numbered (up to sixteen characters, unique for a financial year) and contain:

• Date and number of the delivery challan.
• Consigner's name, address, and GSTIN (if registered).
• Consignee's name, address, and GSTIN or UIN (if registered).
• HSN code and description of goods.
• Quantity (provisional if exact quantity is unknown).
• Taxable value.
• Tax rate and amount (Central Tax, State Tax, Integrated Tax, Union Territory Tax, or Cess) if transportation is for supply.
• Place of supply for inter-State movement.
• Signature.

For goods supply, the delivery challan is prepared in triplicate:

• Original: Marked “ORIGINAL FOR CONSIGNEE”
• Duplicate: Marked “DUPLICATE FOR TRANSPORTER”
• Triplicate: Marked “TRIPLICATE FOR CONSIGNER”

Goods transported with a delivery challan must be declared as specified in Rule 138. If goods are transported for supply but an invoice could not be issued at the time of removal, the supplier must issue a tax invoice after delivery.

When goods are transported in a semi-knocked-down (SKD) or completely-knocked-down (CKD) condition:

• The complete invoice must be issued before dispatch of the first consignment.
• A delivery challan, referencing the invoice, must accompany each subsequent consignment.
• Each consignment must include copies of its delivery challan and a certified copy of the main invoice.
• The original invoice must be sent with the final consignment.

Rule 55A also states that the person in charge of a conveyance must carry a copy of the tax invoice or bill of supply (issued under CGST Rules 46, 46A, or 49) if an e-way bill is not required.