Mahatma Education Society’s

Pillai College of Arts, Commerce and Science

(Autonomous)
New Panvel
ISO 9001:2015 certified
Affiliated to University of Mumbai

PROJECT REPORT
ON THE TOPIC
“TAX INVOICES, DEBIT AND CREDIT NOTES IN GST
& E-WAY BILL”
SUBMITTED BY-
ABIZER ZUZER KACHWALA
ROLL NO- 8421
TYBAF-A

TO-
PROF.SHARDUL BUVA
AS A PART OF CONTINUOUS ASSESMENT –II FOR THE
SUBJECT –
INDIRECT TAXES
(SEM-V)
A.Y-2020-21

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 INDEX
SR.NO NAME OF THE PAGE NO.
TOPIC
1 Tax invoice -Sec.31, 3-5
Particulars of Tax
Invoice

2 Manner of issuing 6-8

tax invoice and
sample format,
Bill of Supply and
various vouchers

3 Debit and credit 9-14

notes and E-Way Bill
,its format and
benefits

4 Conclusion and 15
References

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 TAX INVOICE-SEC.31

A registered person supplying taxable goods shall, before or at the

time, of:
(a) removal of goods for supply to the recipient, where the supply
involves movement of goods; or
(b) delivery of goods or making available thereof to the recipient,
in any other case, issue a tax invoice showing the description, quantity
and value of goods, the tax charged thereon and such other particulars
as may be prescribed.

a) Revised invoices may be issued against the invoice already

issued during the period starting from the effective date of
registration till the date of issuance of certificate of registration
within one month from date of issuance of certificate of
registration.
b) No invoice required if value of goods or services or both < Rs.
200
c) Composition dealers and Person supplying exempted goods or
services to issue a bill of supply instead of tax invoice

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 e) In case of continuous supply of goods where successive
statements of accounts/ payments are involved, invoice shall be
issued before or at the time of each such statements/
payment.
f) In case of continuous supply of services
 Due date ascertainable – invoice to be issued before /
after payment is liable to be made by recipient but within
prescribed period (whether or not payment received)
 Due date not ascertainable – invoice to be issued before /
after each such time supplier receives payment but within
prescribed period
 Payment linked to completion of an event – invoice to
be issued before / after time of completion of that event
but within prescribed period.

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 PARTICULARS OF TAX INVOICE
Subject to rule 54, a tax invoice referred to in section 31 shall be
issued by the registered person containing the following particulars,
namely:
1. Name and address and Goods and Services Tax Identification
Number of the supplier
2. A consecutive serial number not exceeding sixteen
characters, in one or multiple series, containing alphabets or
numerals or special characters- hyphen or dash and slash
symbolised as ‘_’ and “/” respectively, and any combination
thereof, unique for a financial year.
3. date of its issue.

4. name, address and Goods and Services Tax Identification

Number or Unique Identity Number, if registered, of the
recipient.
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 5. If Unregistered:

6.HSN code.
7.Total value of goods and services including rate of taxes and GST
applicable.
8.Reverse charge details in the invoice
9.Digital signature of supplier or his authorised representative.

MANNER OF ISSUING TAX INVOICE

(SEC 31(1) & (2) read with rule 48)
Rule 48(1)- Issuance of Invoice for Goods:
In Triplicate
original- for recipient
duplicate- for transporter
triplicate- for supplier.

Rule 48(2)- Issuance of Invoice for Services:

original- for recipient
duplicate-for supplier

Rule 48(3)- The serial number of invoices issued during a tax period
shall be furnished electronically through common portal in GSTR-1.

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 TAX INVOICE SAMPLE FORMAT

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BILL OF SUPPLY-

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When a registered supplier makes a supply of exempted goods or
services, or the supplier is registered under the composition scheme,
then he has to issue a Bill of Supply instead of a tax invoice.

RECEIPT VOUCHER:
GST receipt voucher is a commercial document and evidence for
advance payment for the supply of goods or services.
Entities registered under GST must issue a GST receipt when
advance payment is received from a customer.

REFUND VOUCHER:
In case of a refund of the advance payment and nil supply, the
taxpayer can issue a refund voucher.

PAYMENT VOUCHER:
 Payment Voucher is a type of GST invoice which is issued by a
registered person liable to pay tax under Reverse Charge. Further,
the payment invoice is an evidence of goods and services received by
such a registered person from the supplier.

DEBIT AND CREDIT NOTES

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Debit Note- A debit note in GST is a document issued by the supplier
in the following cases:

 Increase in Taxable Value -When a supplier requires to

increase the taxable value of a supply, he/she has to issue a debit
note to the recipient.
 Increase in GST charged in invoice - When a supplier requires
to increase the rate or value of GST charged in an invoice,
he/she has to issue a debit note to the recipient.

Details of debit notes issued should be furnished in Form

GSTR-1 for the month in which the debit note is issued. These
details will be made available to the recipient in Form GSTR-
2A, post which the recipient has to accept the details and submit
in Form GSTR-2.

A debit note can be raised by a recipient also when the goods

received are returned, damaged in transit, the taxable value
shown in the invoice is more than the actual or tax charged is
more than the actual.

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Credit Note- A credit note in GST is a document issued by the
supplier in the following cases:

 Supplies are returned or found to be deficient by the

recipient - When goods supplied are returned by the recipient of
goods/services supplied are found to be deficient by the
recipient, the supplier should issue a Credit Note. The credit
note serves the purpose of reducing the value of the original
supply.
 Decrease in taxable value - When a supplier requires to
decrease the taxable value of a supply, he/she has to issue a
credit note to the recipient.
 Decrease in GST charged in invoice - When a supplier
requires to decrease the rate or value of GST charged in an
invoice, he/she has to issue a credit note to the recipient.

The details of credit notes issued in a month should be furnished by

suppliers in Form GSTR-1. The recipient of the supply will receive
these details in Form GSTR-2A, post which the recipient has to
accept the details and submit in Form GSTR-2. A point to note here
is, that a supplier will be allowed to reduce his tax liability via a credit
note only if the recipient of the supply accepts the credit note details
in Form GSTR-2. Once this is done, the recipient’s input tax credit

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will be reversed to the extent of the credit note and the supplier’s tax
liability will also be correspondingly reduced.

As per the prescribed debit note format and credit note format, the
following are the details which need to be captured:

1. Nature of the document must be indicated prominently, such as

‘revised invoice’ or ‘supplementary invoice’
2. Name, address, and GSTIN of the supplier
3. A consecutive serial number containing only alphabets and/or
numerals or special characters hyphen “- slash “/”, unique for a
financial year
4. Date of issue of the document
5. If the recipient is registered- Name, address and GSTIN/Unique
ID number of the recipient
6. If the recipient is unregistered- Name, address of recipient and
address of delivery, with state name and code
7. Serial number and date of the original tax invoice or bill of
supply
8. The taxable value of the goods or services, rate of tax and the
amount of tax credited or debited to the recipient
9. A signature or digital signature of the supplier or his authorized
representative.

If the amount payable by the buyer to the seller rises, a debit

note is given by the seller:

Tax Invoice has lower taxable value than the sum payable.
Tax Invoice has a lower tax value than the amount payable.

If the value of the invoice decreases, the seller issues a credit

note:

Tax Invoice has a higher taxable value than the sum payable.
Tax Invoice has a higher tax value than the amount payable.
Purchase shall refund the products to the seller.
Resources considered to be lacking.

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 FORMAT OF DEBIT AND CREDIT NOTE

CREDIT NOTE

DEBIT NOTE

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 E-WAY BILL

(SEC.68 CGST RULES 2018)

E-way bill is an electronic way bill required to be generated at the

time of transport of goods by every registered person if the value of
the consignment exceeds INR 50,000.

It means if the value of one consignment (invoice/ bill/ delivery

challan) exceeds Rupees Fifty Thousand, then an E-way bill is
required to be generated.

An e-way bill is required to be carried by a person who is in charge of

conveyance carrying any consignment of goods for which values
exceeds as prescribed above.

Benefits:

1)Taxpayers or transporters need not visit any tax officers or check-

posts for generation of e-way bill or movement of goods through
states.

2)No waiting time at check-posts and faster movement of goods

thereby optimum use of vehicles or resources, since there are no
check-posts in GST regime.

3)User-friendly e-way bill system.

4)Easy and quick generation of e-way bill.

5)Checks and balances for smooth tax administration and process

simplification for easier verification of e-way bill by tax officers.

An E-way bill may be generated by – 

 A registered person

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  unregistered person or 
 A transporter

However, if a supply is made by an unregistered person to a

registered person, the recipient of goods is responsible to
generate E-way bill. 

A transporter is responsible to generate E-way bill if the same

has not been generated by a supplier.

In case of unregistered transporters, they will be provided with a

Transporter ID on registering on E-way bill portal.

Validity of an e-way bill shall be calculated from the date of

generation of e-way bill. An e-way bill shall be valid for the
period calculated as follows:

Pre-requisites for generation of E-way Bill

 Invoice / Bill of Supply / Delivery Challan 

 Transport by Road 
 Transporter’s ID or Vehicle number 
 Transport by other modes 
 Transporter ID, Transport document number and date

CONCLUSION AND REFERENCES

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 This project helped me learn many things about GST and the
documentation process governing the entire system. It helped
gain an insight into how invoices are issued and what are debit
and credit notes along with other various types of vouchers.
From this project I understood what e-way bill is and how/ when
a business should prepare an e-way bill.

REFERENCES
Books Referred-
1.TYBAF Manan Prakashan –Sem5 Indirect Taxes-I
2.Indirect taxes –GST module I –ICAI

Websites Referred-
1.www.gsthero.com
2.www.financialexpress.com
3.www.gst.gov.in
4.www.cleartax.in

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