All About Receipt Vouchers under GST

Goods and Services Tax (GST) introduced documentation requirements to ensure compliance and transparency. In such documentation, receipt voucher has been mentioned which plays a crucial role, especially in advance payment scenarios.

This article provides a comprehensive overview of receipt vouchers under GST, including their format, exceptions, modification, and relevant FAQs.

What is a receipt voucher under GST?

A receipt voucher is a document issued by a supplier to a recipient when receiving advance payment for goods or services under GST. It acts as formal proof of receipt of payment before the actual supply occurs.

Section 31(3) of the CGST Act mandates that if a supplier receives an advance for a supply, they must issue a receipt voucher to the recipient.

Key features of receipt voucher 

1. Proof of Payment: Confirms receipt of advance.
2. Legal Document: Required under GST law.
3. Not an Invoice: Only issued for advances; a tax invoice is issued upon actual supply.

When should the receipt voucher be issued?

A supplier of services is required to calculate GST on the advance received and pay it to the government. However, a supplier of goods is not required to pay GST on advances. 

For example – Mr. A entered into a contract with B to supply some services worth Rs 20 lakh. GST applicable to these services is 18%. An advance of Rs 10 lakh is given by B to A. Now, Mr. A has to issue a receipt voucher of Rs 10 lakh and pay GST as follows:

• Total GST Payable – Rs 10 lakh X (18/118) = Rs 1,52,542                   
• Amount of CGST @ 9%  = Rs 76,271 
• Amount of SGST @ 9%  = Rs 76,271

Format of receipt voucher

The CGST Rules, 2017, have provided the format of the receipt voucher:

1. Name, address, and GSTIN of the supplier
2. Serial number
3. Date of its issue
4. Name, address and GSTIN or Unique Identity Number, 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 and its code, in case of a supply in the course of inter-state trade or commerce
10. Whether the tax is payable on a reverse charge basis
11. A signature or digital signature of the supplier or his authorised representative:

Exceptions while issuing receipt voucher

1. When at the time of receipt of advance, the rate of tax is not determinable, the tax will have to be paid at 18%
2. During receipt of advance, the nature of supply is not determinable; the nature of supply shall be deemed interstate supply.

Is a receipt voucher mandatory under GST?

Yes, a receipt voucher is mandatory when an advance is received for a supply, as per Section 31(3)(g) of the CGST Act, 2017. Failure to issue a receipt voucher may result in non-compliance and penalties.

Can a receipt voucher be modified later?

Once issued, a receipt voucher is generally considered a final document. However, suppliers may face certain scenarios, such as cancellation of advance or change in supply terms. Then , they can issues a refund voucher or credit note.

What is a refund voucher and when is it issued?

As per CGST Rule 51(1), a refund voucher is a document issued by a supplier to a recipient when an advance received for a supply is refunded, either in part or in full, due to cancellation or non-supply.

Example:

If a customer cancels an order after paying an advance, the supplier issues a refund voucher for the amount to be returned, ensuring proper documentation and compliance.