The GST Model law has defined the time limit for issue of tax invoices, revised bills, debit notes and credit note. Lets discuss all in detail:
Time limit for issue of tax invoice for supply of goods
- Normal case
- Continuous supply of services
A. Supply of goods in normal case
A registered taxable person who supplies taxable goods has to issue a issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed:,
(a) Where supply involves the movement of goods:
On or before the removal of goods for supply to the buyer from the location of supplier.
For eg.Dealer A in Delhi is dealing in TV sets. He has to make delivery of 5 TVs to Dealer B in Mumbai. Here supply involves movement of goods. In such case the invoice will be issued on or before the date of dispatch of consignment.
(b) Where supply does not involve movement of goods:
On or before date of delivery of goods to the recipient
For eg. ABC Ltd purchases an escalator, for its office building. The supplier agrees to assemble and install it at office premises. Here, since the supply does not require movement of the generator set, the invoice must be issued at the time when the escalator is made available to ABC Ltd.
B. 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.
Time limit for issue of credit note and debit note
- On or before the thirtieth day of September following the end of the financial year in which such supply was made, or
- The date of filing of the relevant annual return for the financial year,
whichever is earlier.
It may be noted that annual return is required to be filed under section 30(2) on or before 31st December of the financial year following the relevant financial year. In cases where such annual return is filed after 30th September, the time limit for issuing credit/debit note will be 30th September only.
According to proviso to section 24(1), no credit note shall be issued by the taxable person if the incidence of tax and interest on such supply has been passed by supplier to recipient.