Missing information in Tax Invoice leads to Penalties u/s 125 and 122

Information on Tax Invoice - GST

Under the Goods and Service Tax (“GST”) regime, an invoice plays a vital role as this document captures every detail about transactions like supplier information, recipient details, goods description, tax rates, etc. Every transaction is needed to be made under the cover of an invoice that contains Details in Tax Invoice under GST.

Section 31 of Central Goods and Service Tax Act, 2017 (“CGST Act”) read with Rule 46 of Central Goods and Service Tax Rules, 2017 (“CGST Rules”) contains provisions about tax invoice, i.e., due date of issuance of tax invoice and contents of a tax invoice.

Important Details in Tax Invoice under GST

As per Rule 46(n) of CGST Rules, tax invoice must contain place of supply along with name of state. This information enables government to determine consuming state of goods or service and accordingly, government can make proper allocation of GST among Centre and state.

However, it has been observed by board under GST Audit process that a number of registered persons (especially banking, insurance and telecom sector etc.) have failed to mentioned place of state and name of state on tax invoice.

Accordingly, department has instructed vide circular 90/09/2019-GST dated 18th February, 2019 that all registered taxpayers are required to mention place of supply and name of state on tax invoice while making inter-state supply. Contravention will lead to invocation of penalty proceedings against taxpayer under section 122 or 125 of CGST Act.

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DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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