Offer ends in
0
DAYS
0
HOURS
0
MINS
0
SECS
2020-04-22 08:50:58GST CenterEnglishThis article talks about what is a receipt voucher in GST when a person needs to issue a receipt voucher, components of receipt voucher.https://quickbooks.intuit.com/in/resources/in_qrc/uploads/2020/04/love-peace-and-joy.pnghttps://quickbooks.intuit.com/in/resources/gst-center/receipt-voucher-in-gst/Receipt Voucher in GST: Meaning, Components %%sep%% %%sitename%%

Receipt Voucher in GST: Meaning, Components and Provisions

4 min read

Try QuickBooks Invoicing & Accounting Software – 30 Days Free Trial.


Under GST, there can be situations where a person receives an advance payment with respect to a particular supply. And in this case, the person receiving advance payment needs to issue a receipt voucher for such advance payment.

This article talks about what is a receipt voucher in GST when a person needs to issue a receipt voucher, components of receipt voucher and other provisions pertaining to receipt voucher.

What is the Receipt Voucher in GST?

There are cases when a registered person receives an advance payment with respect to any supply of goods or services or both. In this case, such a person receiving advance payment needs to issue a receipt voucher evidencing the receipt of such advance payment.

Such a receipt voucher must contain particulars as prescribed in rule 50 of CGST rules, 2017.

Further, there can be various possibilities with regards to issuing tax invoice while receiving advance payment under GST.

  • No Tax Invoice is Issued

There are cases when a registered person receives an advance payment for any supply of goods or services and issues a receipt voucher in respect of the same. But, he neither makes any supply nor issues a tax invoice subsequent to issuing a receipt voucher. In this case, such a person can refund the amount of advance payment received and issue a refund voucher against such an advance payment.

  • Tax Invoice is Issued

There are cases when a registered person receives an advance payment for any supply of goods or services and issues a receipt voucher in respect of the same. Further, he does not make any supply but issues a tax invoice subsequent to issuing a receipt voucher. In this case, such a person needs to issue a credit note in order to cancel the transaction. Furthermore, such a credit note needs to be issued as per section 34 of the CGST act.

In addition to the above, there can be cases when it is challenging to determine the rate of tax to be charged or place of supply at the time of receiving advance payment. Therefore, as per rule 50 of the CGTS act, if the rate of tax is not determinable at the time of receipt of the advance payment, tax at the rate of 18% shall be paid. And, if the nature of supply is not determinable at the time of receipt of advance payment, then such a supply would be taken as inter-state supply and GST shall be paid accordingly.

Components of Receipt Voucher

As per rule 50 of CGST rules, 2017, a receipt voucher must contain the following particulars:

  1. Name, address and GSTIN of the supplier.
  2. A consecutive serial number not exceeding 16 characters, in one or multiple series, containing letters or numerals or special characters (hyphen or dash and slash symbolised as ‘-‘ and ‘/’ respectively) and any combination thereof, unique for a financial year.
  3. Date of its issue.
  4. Name, address and GSTIN or UIN, if registered, of the recipient.
  5. Description of goods or services.
  6. Amount of advance taken
  7. Rate of tax (central tax, state tax, integrated tax, union territory tax or cess).
  8. Amount of tax charged in respect of taxable goods or services (central tax, state tax, integrated tax, union territory tax or cess).
  9. Place of supply along with the name of state, in case of a supply in the course of inter-state trade or commerce.
  10. Whether the tax is payable on reverse charge basis.
  11. Signature or digital signature of the supplier or his authorized representative.

GST On Advances Received

A taxpayer discharges tax liability under GST depending upon the time of supply of goods or services made by such a taxpayer. Now, the time of supply under GST is determined depending upon:

  • The time when the such a supplier receives payment with respect to the supply made or
  • Time when invoice with regards to the supply made is issued or
  • When the goods are received

Generally, the time of supply under GST is the earliest of issuance of invoice or receipt of payment.

However, in case a supplier receives any advance payment with respect to any supply made by him, the time of supply in this case is when the advance is received.

This is irrespective of the fact whether the supply of goods or services has been made or not. This means a registered person receiving advance needs to pay GST at the time when he receives the advance payment.

Accordingly, the amount of advance payment covered in the invoice shall be treated as supply to the extent of the amount of such an advance payment. Say an advance payment of Rs.10 lakhs is received for a supply worth Rs. 1 crore to be made in future. The time of supply to the extent of the advance of Rs. 10 lakhs shall be the time when such advance payment is received. Whereas, for the balance payment of Rs. 90 lakhs, the time of supply shall be determined on the basis of date of issuance of tax invoice and other parameters.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles