GST Invoicing: Deadlines and Invoice Types Explained
What is the difference between the invoice date and due date?
The invoice date refers to the date when the invoice is created on the bill book, while the due date refers to the date when the payment is due against the invoice.
The time period to issue an invoice under GST Invoice Rule (5), varies for different products and services, with some exceptions.
When are invoices to be issued for taxable goods?
- Movable goods: Invoice is to be issued before or at the time of removal of goods.
- Immovable goods: Invoice is to be issued before or at the time of delivery of goods or when it is made available to the recipient.
When are invoices to be issued for taxable services?
Invoices should be issued within 30 days from the date of supply of services.
How should invoices be issued for continuous supply of services?
- When the due date of payment is ascertainable: The invoice should be issued within 30 days, from the dateof receiving the payment.
- When the due date of payment is not ascertainable: The invoice should be issued within 30 days of receiving the payment.
- When payment is linked to the completion of an event: The invoice should be issued within 30 days of the completion of an event.
- When the supply of services ceases under a contract: The invoice should be issued, when the supply of services ends/ceases.
- When goods are sent on an approval basis: The invoice should be issued before or at the time, when it is ascertained that the supply has taken place.
- In the case of banks, NBFCs and financial institutions: The invoice should be issued within 45 days of rendering/submitting of the services.
Section (23) of the model GST law, read with rule 4 of the GST Invoice Rules, says that a registered taxable person may issue a revised invoice against the invoice already issued by him during the period starting from the effective date of registration, till the date of the issuance of the certificate of registration to him. The revised invoice would enable the recipient to take credit of tax charged in it.
Copies of tax invoices
Three copies are required, whenever a tax invoice is issued.
Original Copy: This is the first copy of the invoice for the buyer and is labelled as ‘Original for recipient’.
Duplicate Copy: This is a duplicate copy to be carried with the transporter and is labeled ‘Duplicate for transporter’. However, the transporter does not need an invoice if the supplier has an invoice reference number, which can be generated from the GSTN portal by uploading a tax invoice.
Triplicate Copy: This one is for the suppliers’ own record.
Debit and credit notes
A debit note is issued by the seller, when the amount payable by the buyer to seller increases if:
- The tax invoice has a lower taxable value, than the amount that should have been charged.
- The tax invoice has a lower tax value, than the amount that should have been charged.
A credit note is issued by the seller when the value of the invoice decreases if:
- The tax invoice has a higher taxable value, than the amount that should have been charged.
- The tax invoice has a higher tax value, than the amount that should have been charged.
- The buyer refunds the goods to the supplier.
- The services are found to be deficient.
Copies of invoices to be issued, depend on whether you are providing goods or services. For goods, 3 copies are required and for services, 2 copies.