The Institute of Chartered Accountants of India (ICAI) has released the Handbook on Invoicing under GST, June 2025 edition.
Types of GST Invoices and Documents:
The guide explains various GST-related documents:
- Tax Invoice: For taxable supplies by registered persons (except exempt or composition dealers).
- Bill of Supply: For exempt supplies or supplies by composition dealers.
- Invoice-cum-Bill of Supply: For mixed taxable and exempt supplies to unregistered persons.
- Other documents include Debit/Credit Notes, Receipt Vouchers (advance payments), Refund Vouchers, Payment Vouchers (reverse charge), Delivery Challans (for goods movement without supply), and Self-Invoices (reverse charge inward supplies from unregistered persons).
Content and Timing of Tax Invoices:
Tax invoices must contain prescribed details such as supplier/recipient GSTIN, invoice number, date, description, HSN code, taxable value, tax rates, place of supply, and signature.
Time limits differ for goods and services: goods invoices are issued at or before removal/delivery; services invoices must be issued within 30 or 45 days depending on the service category.
Input Tax Credit (ITC) Compliance:
Proper invoices or specified documents are mandatory for claiming ITC. The documents must have all prescribed details; otherwise, ITC can be denied, leading to penalties. Tax invoices must indicate “INPUT TAX CREDIT NOT ADMISSIBLE” if related to certain tax recoveries.
E-Invoicing Framework:
E-invoicing is mandatory for taxpayers with turnover over ₹5 crores from August 2023. Invoices are digitally registered with a unique IRN and QR code, facilitating automated GST return filing and e-way bill generation. Certain entities are excluded from e-invoicing.
Legal Consequences and Record Retention:
Non-compliance in invoicing attracts heavy penalties and prosecution under sections 122 and 132 of CGST Act, including for fake or missing invoices. All GST-related invoices and documents must be retained for 72 months from the annual return due date, and longer if involved in appeals or audits.
The Complete Guide can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/06/Handbook_on_Invoicing_under_GST17-06-2025.pdf
