An important function of executing a transaction is invoicing. An invoice is issued whenever there is a purchase or a sale by a seller who is making the sale. There are details on the invoice like the name of the product, its serial number, quantity, and its description, etc. It also has other features like the tax that is charged on it, discounts, if any, information of the supplier and purchaser, etc. There are rules of Invoice Matching Mechanism in GST notified by the government under the GST, and there is also a template of invoice called the GST INV-01. It entails all the elements like the details of supplier, the tax rates of GST, etc. that are required.
With the help of this invoice, the buyers and sellers have their entries in their account books. During an audit, these account books are the ones to be checked and based on them balance sheet, profit and loss account, etc. are made.
Rules for Invoice Matching Mechanism in GST
There have been rules of invoicing set by the government under GST, and there will also be a template of the invoice. This model will hold all the details and description like information of the supplier, tax rates of GST, etc.
There are rules of GST invoice that have been issued by the Central Government, and there are two invoices which may be published under the GST called the bill of supply and the tax bill.
In the common and reasonable time frame, the GST tax invoice is needed to be issued by a registered dealer either at the time the goods are supplied or before that, and it can also be issued either before or after the receipt of delivery by the person at the receiving end. On the other hand, where the supply of services is concerned, the issue of the invoice is to be done in a span of 30 days. The period is 45 days when banks and NBFCs are concerned.
Ways to Revise the Invoices that are already issued
The GST Model Law has been amended and according to the Section 28(3a), the issued tax invoices can be revised by only a registered taxable person in a period of one month from the issuance of the certificate of registration which is the GST Registration. It happens against the invoice that was already issued in the period that started from the effective date of registration to the issuing date of the certificate of registration.
Usually, a tax invoice is issued to charge the tax and then pass the credit. But in the case of GST, there are certain areas where the suppliers cannot charge any tax, and therefore, a tax invoice is not issued. In these cases, there is the production of a separate document called the Bill of Supply.
If the issue of original tax invoice and the GST tax amount or the taxable value either exceeds or is lesser than the actual tax amount or the taxable value, then the supplier is capable of issuing credit/debit note.
So this was all about Invoice Matching Mechanism in GST. If you have any doubts, you can leave us a message below.
