It is normal throughout business operations for a GST invoice to issue an incorrect invoice or a few invoices needing modification or revision. They must correct these invoices in these circumstances and report them in the monthly returns. This process refers to the revision of invoices.
One can correct tax invoices in several ways, resulting in either a new, revised invoice or a supplementary invoice. For instance, you may revise the cost of products or services upwards or downwards, or the GST rate may vary. You can also use a credit note to make a downward correction. Similarly, you can use a supplemental invoice or debit note to make an upward modification. The term “revised invoice” is applicable when a registered individual has to submit an invoice for the supply made before getting registration.
Read on to learn more about the various aspects of revised invoices under GST.
An Overview of Revised Invoices Under GST
As per the revised invoice meaning, when managing a business, it’s common to submit a GST invoice accidentally. Contrarily, a few invoices may need alterations, too. Therefore, you must update and describe these bills in the month-to-month returns in such circumstances.
Tax invoice corrections can take many forms, and they may produce either an amended or supplementary invoice. For instance, the price of products and services may increase or decrease, or the GST rate may change. A credit note should allow a descending update, but a valued receipt or debit note would allow a vertical adjustment. However, when an enrolled person wants to produce an invoice for the arrangements made before enrolling, they must use a “revised invoice.”
When do I issue a revised invoice under GST?
To get a permanent enrollment declaration under GST, all available suppliers must apply for temporary enrollment and complete all necessary procedures. The taxpayer must provide amended invoices for all invoices issued between when they were issued and the time of the GST enrollment declaration after obtaining the enrollment declaration.
- Date of execution of GST
- Date of issue of the registration certificate
Within a month after the day you issued the registration certificate, you can send the revised invoice.
Format of the Revised Invoice under GST
The GST revised invoice format that you must adhere to while changing an invoice in GST is as follows:
- The revised invoice in GST shall be written prominently on the invoice.
- Supplier’s name and address
- GSTIN of the supplier
- A consecutive serial number not exceeding 16 characters (containing alphabets, numbers, and other special characters)
- Document Nature
- Invoice Issue Date
- Recipient’s name and address
- In the case of a registered recipient, GSTIN or UIN
- In the case of an unregistered recipient, the delivery address along with the state name and code
- Corresponding tax invoice and serial number, or Bill of Supply, as the case may be
- The taxable amount of goods or services, tax rate, and tax amount credited or debited to the recipient, as the case may be
- DSC of the supplier or his authorized representative.
How do I revise invoices under GST?
The registered individual must change any invoices generated within the aforementioned time.
Tax invoices can be amended in a variety of ways. The cost of products or services may be adjusted upwards or downwards, as well as the GST rate. The invoice must now be amended because it has been changed. A separate invoice may cover upward changes. A credit note may also be used to communicate a decrease in value.
Sometimes, the invoice must be completely updated, in which case the taxpayer must submit a new invoice.
A revised invoice in GST is not yet explicitly defined under the GST statute. All registered taxpayers have been given GSTN IDs as of the current date. Individuals who complete the necessary procedures will be given a GST registration number.
From when GST is effective until they get their GST identification number, all invoices generated by taxable registered people must be issued with a revised invoice. This means that upon receiving a registration certificate, a registered taxable person cannot submit a revised invoice.
The information from the original invoice should be included in an adjusted invoice issued as described in the following section.
Supplementary Invoices
When an earlier or original tax invoice has a flaw, restriction, or inadequacy, the taxable person must produce a supplemental tax invoice. Debit note is another name for supplementary bills.
There may be instances when the initial tax invoice undervalues the taxable worth of certain goods or services. As a result, it will levy a smaller tax. A supplemental invoice corrects a tax invoice inaccuracy under the GST.
Therefore, an upward revision may be necessary. Supplemental invoices or debit notes are necessary to address such circumstances.
Adjusting using a credit note
A taxable person may issue a credit note if the tax paid for supplying goods and services exceeds the tax owed on that invoice, in accordance with Section 2(35) of the Model GST statute read with Section 24(1).
In the following situations, a credit note must be sent with the required information:
- When a taxable person receives goods and services, they can issue an invoice.
- When a tax invoice includes a value that is higher than the tax obligation.
As a result, credit notes are employed as an accounting adjustment to settle the precise value and tax amount.
Conclusion
The taxable registered person would ultimately find it necessary to present an “updated” invoice for all invoices made between the day GST is implemented and the day they receive their official GST ID number. Within one month after receiving the original registration certificate, this invoice must be sent in compliance with GST requirements. A registered taxable person who has obtained a registration certificate cannot submit a revised invoice.