Revising Invoices under GST – Debit or Credit Note

Can a Tax Invoice be revised under GST Law_thumb

Whenever there is a revision in the tax invoice already uploaded on GSTN, the taxpayer cannot modify the said tax invoice. To give effect to the said modification, a Debit Note / Supplementary Invoice or Credit Note or is issued by the supplier and receiver of goods and services.

 

Debit Note / Supplementary Invoice : In the scenario where there is an increase in the taxable value or GST charged in the original invoice, a debit note is issued by the supplier to the buyer of goods and services.  It means, whenever there is an increase in the value of the tax invoice, suppliers issues debit note to the buyer.

 

Credit note : Credit Note is issued by the supplier  to record any decrease in the taxable value or GST charged in the original tax invoice.  Credit note must be issued on or before 30th September following the end of the financial year in which the supply was made OR before the date of filing of the relevant annual return, whichever is earlier.

 

Contents of Debit Note and Credit Note :

 

  • Name, address, and GSTIN of the supplier;
  • Date of issue of the document;
  • Nature of the document must be indicated prominently;
  • A consecutive serial number containing only alphabets and/or numerals, unique for a financial year;
  • If recipient is registered- Name, address and GSTIN/Unique ID number of the recipient;
  • If recipient is unregistered- Name, address of recipient and address of delivery, with state name and code;
  • Serial number and date of the original tax invoice;
  • Taxable value of the goods or services, rate of tax and the amount of tax credited or debited to the recipient;
  • Signature or digital signature of the supplier or his authorized representative.

 

Example on Revised Invoice :

 

Let us take an illustration on Best Scooty Limited on the time limit by when they need to issue credit notes. Below are two scenarios –

Scenario 1– They file annual return of the Financial Year 17-18 on 1st December’18

Scenario 2– They file annual return of the Financial Year 17-18 on 31st May ‘18.

 

Scenario

Date of Original Supply

Date of Filing Annual Return

Condition for determining last date to issue credit note

Last date for issuing credit note

Scenario 1

 

 

 

1st November 2017

 

1st December 2018

 

30th September following the end of the financial year in which the supply was made or the date of filing annual return, whichever is earlier

 

30th September 2018

 

Scenario 2

31st May 2018

 

31st May 2018

 

 

For more queries, please visit Taxmantra.com.

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