Tax invoice on supply of goods or services: Every registered person is required to issue a tax invoice on effecting a taxable outward supply of goods or services.
a. In order to determine when the tax invoice is to be issued, the supply must be classified into one of these two cases, that is, whether it is case of supply that involves movement or one that does not involve movement of the goods.
Timelines for issuance of a tax invoice on the supply of taxable goods:
i. Where the supply involves movement of goods: Before or at the time of removal of goods;
ii. Where the supply does not involve movement of goods: Before or at the time of delivery of the goods / making them available to the recipient.
b. It is crucial for the supplier to determine the point of time at which the service is provided. Service being intangible in nature, would throw several challenges in identifying the point of time at which it can be said to be provided / completed.
Timelines for issuance of tax invoice on the supply of taxable services:
i. Before the provision of the services; or
ii. After the provision of the services but within 30 days (or 45 days in case of suppliers of services being an insurer / banking company / financial institution, including a NBFC) from the date of supply of the service.
c. In terms of Rule 46 of CGST Rules, 2017, a tax invoice referred to in this section shall be issued by the registered person containing all the particulars specified in the said Rule, as applicable to the transaction.
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