Tax Invoice | What is GST

What is GST?

Goods and Services Tax (in short ‘GST’) is by far one of the most awaited tax reforms in the country. The GST tax reform, is going to impact every sphere of business activity, such as procurement, supply chain, IT, logistics, pricing, margins, working capital, etc. Since a number of business decisions taken based on the current tax structure may no longer be relevant in the new GST regime.

After clearing the doubts on What is GST let us move to what is tax invoicing?

‘Tax invoice’ is required to be issued by a registered taxable person showing description of goods and/or services, value, tax and other particulars at the time of supply. It is a document evidencing supply of goods and services which becomes the basis for charge of tax.

Let us now move to the sections covered under GST Tax invoice

Section 28. Tax invoice

The expression “tax invoice” shall be deemed to include a document issued by an Input Service Distributor under section 21, and shall also include any revised invoice issued by the supplier in respect of a supply made earlier.

Section 29. Tax not to be collected by unregistered taxable person

A person who is not a registered taxable person shall not collect in respect of any supply of goods and/or services any amount by way of tax under the CGST/SGST Act and no registered taxable person shall make any such collection except in accordance with the provisions of this Act and the rules made thereunder

Section 30. Amount of tax to be indicated in tax invoice and other documents

Notwithstanding anything contained in this Act or any other law for the time being in force, where any supply is made for a consideration, every person who is liable to pay tax for such supply shall prominently indicate in all documents relating to assessment, tax invoice and other like documents, the amount of tax which will form part of the price at which such supply is made.


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