Understanding GST Deadlines for Invoices, Credit Notes, and Debit Notes
This article explains the critical GST deadlines for issuing various tax documents in India. It covers the specific timeframes for issuing tax invoices for both standard and continuous supplies of goods. Additionally, it details the crucial deadlines for issuing credit notes and debit notes, highlighting the impact of the financial year and annual return filing dates on these compliances.
Understanding GST Deadlines for Invoices, Credit Notes, and Debit Notes
The GST framework outlines specific timeframes for issuing various documents, including tax invoices, revised bills, debit notes, and credit notes. This article explores these requirements in detail.
Invoice Issuance Timeframes for Goods Supplies
Standard Cases for Goods Supply
A registered taxpayer providing taxable goods must issue a tax invoice detailing the goods' description, quantity, value, applicable tax, and other specified particulars.
- When supply involves goods movement: The invoice must be issued on or before the goods are dispatched to the buyer from the supplier's location. For instance, if Dealer A in Delhi sends five TV sets to Dealer B in Mumbai, the invoice must be issued by the dispatch date.
- When supply does not involve goods movement: The invoice must be issued on or before the date the goods are delivered to the recipient. For example, if ABC Ltd purchases an escalator that the supplier installs at their office, the invoice is due when the escalator is made available to ABC Ltd.
Continuous Goods Supply Scenarios
For continuous supply of goods involving regular statements of accounts or payments, the invoice must be issued either before or at the time each statement is generated, or as each payment is received, whichever applies.
Deadlines for Issuing Credit and Debit Notes
Credit notes and debit notes must be issued by the earlier of the following dates:
- The thirtieth day of November* following the end of the financial year in which the supply occurred, or
- The date of filing the relevant annual return for that financial year.
It is important to note that the annual return, as per section 30(2), is typically due on or before December 31st of the subsequent financial year. If the annual return is filed after November 30th, the deadline for credit/debit note issuance remains November 30th.
*This is subject to notifications from the CBIC, following amendments introduced in the Finance Bill 2022.
In accordance with the proviso to section 24(1), a taxable person cannot issue a credit note if the burden of tax and interest related to that supply has already been passed on by the supplier to the recipient.