What Is The Difference Between The Tax Invoice And Receipt Voucher?

What Is The Difference Between The Tax Invoice And Receipt Voucher?

What Is A Tax Invoice Under GST And When Should It Be Issued?

A tax invoice under the GST regime is mentioned in section 31 of the CGST Act, which makes it compulsory for a seller of goods or services to issue an invoice. If the buyer and seller are both registered under GST, then just an invoice is enough. If the buyer is not registered under GST, then a payment voucher needs to issued along with a tax invoice.

The GST invoice usually should contain the description, value, quantity, and other such details in case the seller is providing goods, and description of service, price, etc. for the rendering of services. Mentioning the GST number of both the buyer and seller is also required standard practice.

As a part of the GST in India, a tax invoice is an extremely crucial document. It serves as proof of supply of the goods or services, and it is also a compulsory document for the buyer to take the relief of the Input Tax Credit (ITC). Without the invoice or the alternative of a credit note, the Input Tax Credit cannot be availed.

What Are The Specific Contents Of A Tax Invoice?

There is no mandated single format for an invoice. However, some fields need to be mentioned as applicable:

Name of supplier
Address of supplier
GSTIN of the supplier
A consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters like hyphen or dash and slash symbolized as “-” and “/” respectively, and any combination thereof, unique for a financial year.
Date of issue of invoice
Name of recipient
Address of recipient
GSTIN or UIN, if registered, of the recipient
Address of delivery, including the name of State and its code, and if such recipient is unregistered and where the value of taxable supply is fifty thousand rupees or more.
HSN code of goods or Accounting Code of Services
Description of goods or services as precise as possible
Amount in case of goods
The total value of the goods or services being supplied
The taxable value taken into account or abatement
Tax rate
Tax distribution in terms of CGST, SGST, IGST, Union Territory Tax or Cess
Place of supply and State name if the buyer and seller involved in the transaction are registered in different states
A digital signature or normal signature of the seller
Whether the tax is payable on a reverse charge basis.
What Is A Receipt Voucher And When Should It Be Issued?

Whenever a registered seller under GST gets an advance payment for any goods and/or services delivered, then he or she has to issue a receipt voucher. The receipt voucher contains such particulars as similar to the ones mentioned in the content of an invoice, and it serves as evidence of receipt of such advance payment.

Advance payment is the primary difference between the tax invoice and receipt voucher. If after the issue of a receipt voucher, there is no supply of the goods or service and no tax invoice is issued, then the receiver of the advance payment can issue a refund voucher to record the same.

What Are The Contents Of A Receipt Voucher?

There is no mandated single format for a receipt voucher. However, there are some fields which need to be mentioned as applicable:

Name of supplier
Address of supplier
GSTIN of the supplier
A consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters like hyphen or dash and slash symbolized as “-” and “/” respectively, and any combination thereof, unique for a financial year.
Date of issue of invoice
Name of recipient
Address of recipient
GSTIN or UIN, if registered, of the recipient
Amount of advance taken.
Description of goods or services as precise as possible
Amount in case of goods
The total value of the goods or services being supplied
Taxable value taking into account or abatement
Tax rate
Tax distribution in terms of CGST, SGST, IGST, union territory tax or cess
Place of supply and state name if the buyer and seller involved in the transaction are registered in different states
A digital signature or normal signature of the seller
Whether the tax is payable on a reverse charge basis.