Time Limit of Issuing Tax Invoice in GST Regime


After a decade-long wait, India will finally implement the Goods and Service tax this will help to remove tax barriers between states, creating a single market. The roll-out will replace a plethora of cascading central, state, interstate and local taxes with a single, nationwide, value-added tax on goods and services. In this article we are going go to discuss with you, “Time Limit of Issuing Tax Invoice in GST Regime”.

A Registered taxable person would liable to pay GST at the time of supply of goods/services and to know what would be the time of supply of goods/services, it is very important to know time of issue of invoice as it is one of the factor of determining time of supply.

The following time limits have been proposed under GST for issuing Invoice.

A. A registered taxable person supplying:

Taxable goods

  • Movable: shall before or at the time of removal of goods shall issue a tax invoice showing description, Quantity, value and tax charged.
  • Immovable: Before or at the time of delivery of goods or making available to the recipient.

Taxable Services

A registered taxable person supplying services shall issue an invoice within 30 days from the date of supply of service showing description, value, and tax payable.

B. Reverse Charge

A Registered taxable person who is liable to pay tax under a reverse charge shall issue an invoice in respect of goods/services received by him, on the date of receipt of goods/services from a person not registered under this act.

C. Continuous supply of goods

Where the successive statement of account or successive payments is involved – invoice shall be issued before or at the time each such statement is issued/payment is received.

D. Continuous supply of Services

  • Due date of payment ascertainable – Within 30 days from the date when the payment is liable to be made.
  • Due Date not ascertainable- Within 30 days of receiving payment

E. Payment linked to Completion of event

Within 30 days of completion of an event.

F. Supply of services ceases under a contract

The invoice shall be issued when the supply ceases.

G. Goods sent on approval basis

  1. Before or at the time when it becomes known that the supply has taken place.
  2. Six months from the date of removal. Whichever is earlier?

H. In case of Banking Company and financial institution

In case of banking Company or a financial Institution including a non-banking financial company, invoice shall be issued within a period of 45 days from the date of supply of service.

Protecting a business can be a task but the efforts will make the success of a business smoother. For any assistance, regarding GST go to centrik.in or call 011-46074008

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