Important Keywords: Section 31 of the CGST Act, Tax invoice, Section 10.
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Section 31 of the Central Goods and Services Tax Act, 2017: Tax invoice.
(1) A registered person supplying taxable goods shall, before or at the time of,-
(a) removal of goods for supply to the recipient, where the supply involves the movement of goods; or
(b) delivery of goods or making available thereof to the recipient, in any other case, issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed:
Provided that the Government may, on the recommendations of the Council, by notification, specify the categories of goods or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed.
(2) A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as may be prescribed:
1[Provided that the Government may, on the recommendations of the Council, by notification,-
(a) specify the categories of services or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed;
(b) subject to the condition mentioned therein, specify the categories of services in respect of which-
(i) Any other document issued in relation to the supply shall be deemed to be a tax invoice; or
(ii) tax invoice may not be issued.]
(3) Notwithstanding anything contained in sub-section (1) and (2)-
(a) a registered person may, within one month from the date of issuance of certificate of registration and in such manner as may be prescribed, issue a revised invoice against the invoice already issued during the period beginning with the effective date of registration till the date of issuance of certificate of registration to him;
(b) a registered person may not issue a tax invoice if the value of the goods or services or both supplied is less than two hundred rupees subject to such conditions and in such manner as may be prescribed;
(c) a registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed:
Provided that the registered person may not issue a bill of supply if the value of the goods or services or both supplied is less than two hundred rupees subject to such conditions and in such manner as may be prescribed;
(d) a registered person shall, on receipt of advance payment with respect to any supply of goods or services or both, issue a receipt voucher or any other document, containing such particulars as may be prescribed, evidencing receipt of such payment;
(e) where, on receipt of advance payment with respect to any supply of goods or services or both the registered person issues a receipt voucher, but subsequently no supply is made and no tax invoice is issued in pursuance thereof, the said registered person may issue to the person who had made the payment, a refund voucher against such payment;
(f) a registered person who is liable to pay tax under sub-section (3) or subsection (4) of section 9 shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both;
(g) a registered person who is liable to pay tax under sub-section (3) or subsection (4) of section 9 shall issue a payment voucher at the time of making payment to the supplier.
(4) In case of continuous supply of goods, where successive statements of accounts or successive payments are involved, the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such payment is received.
(5) Subject to the provisions of clause (d) of sub-section (3), in case of continuous supply of services,-
(a) where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment;
(b) where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment;
(c) where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that event.
(6) In a case where the supply of services ceases under a contract before the completion of the supply, the invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply made before such cessation.
**(7) Notwithstanding anything contained in sub-section (1), where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued before or at the time of supply or six months from the date of removal, whichever is earlier.
Explanation.-For the purposes of this section, the expression “tax invoice” shall include any revised invoice issued by the supplier in respect of a supply made earlier.
*Enforced w.e.f. 1st July, 2017.
1. Substituted for the proviso ” Provided that the Government may, on the recommendations of the Council, by notification and subject to such conditions as may be mentioned therein, specify the categories of services in respect of which-
(a) any other document issued in relation to the supply shall be deemed to be a tax invoice; or
(b) tax invoice may not be issued.”
by s. 123 of the Finance Act, 2020 (No. 12 of 2020) – Brought into force w.e.f. 01st January 2021 vide Notification No. 92/2020-C.T. dated 22nd December 2020.
** Kindly also refer to Notification No. 66/2020 – CT dated 21st Sept. 2020.
Frequently Asked Questions
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What does Section 31 of the CGST Act 2017 specify about tax invoices?
Section 31 of the CGST Act 2017 specifies the conditions under which a tax invoice must be issued, including the details required and the timing for issuing these invoices.
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Who is required to issue a tax invoice under Section 31 of the CGST Act 2017?
Any registered supplier of goods or services is required to issue a tax invoice under Section 31 of the CGST Act 2017 for taxable supplies made.
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What information must be included in a tax invoice as per Section 31 of the CGST Act 2017?
A tax invoice must include details such as the name and address of the supplier and recipient, GSTIN, description of goods or services, value, tax rate, and the amount of tax charged.
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When should a tax invoice be issued according to Section 31 of the CGST Act 2017?
A tax invoice should be issued at the time of supply of goods or services, or within a specified period, as detailed under Section 31 of the CGST Act 2017.
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Can a tax invoice be issued for a supply that is not taxable under Section 31 of the CGST Act 2017?
No, Section 31 of the CGST Act 2017 mandates that a tax invoice can only be issued for taxable supplies; non-taxable supplies do not require a tax invoice.
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What is the penalty for not issuing a tax invoice as per Section 31 of the CGST Act 2017?
Failure to issue a tax invoice as stipulated in Section 31 of the CGST Act 2017 can result in penalties under the provisions of the Act, including monetary fines.
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Are there different types of tax invoices mentioned in Section 31 of the CGST Act 2017?
Yes, Section 31 of the CGST Act 2017 distinguishes between regular tax invoices, consolidated tax invoices, and revised tax invoices, each serving specific purposes.
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How does Section 31 of the CGST Act 2017 affect the input tax credit?
Section 31 of the CGST Act 2017 is crucial for claiming input tax credit, as only valid tax invoices issued in compliance with this section are eligible for credit.
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What is the process for correcting a tax invoice under Section 31 of the CGST Act 2017?
To correct a tax invoice issued under Section 31 of the CGST Act 2017, the supplier must issue a revised tax invoice that clearly indicates the changes made.
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Is electronic invoicing permitted under Section 31 of the CGST Act 2017?
Yes, Section 31 of the CGST Act 2017 allows for electronic invoicing, provided it meets all the regulatory requirements specified in the Act.
Download Pdf: https://taxinformation.cbic.gov.in/
