Revised Invoice under GST: How to revise GST invoices

In the business world, mistakes happen, and sometimes, invoices issued under Goods and Services Tax (GST) may need to be corrected. Once a return is filed, it can be difficult to adjust transactions, especially invoices. Whether it’s a billing error or a change in circumstances, fixing these bills is important. Let’s look at how invoices are adjusted under the GST regime.

Why GST is important

GST has changed the tax landscape in India, aiming to pass on input taxes to consumers. Charges per transaction must be reported monthly to ensure accurate tax calculations. Any omission could lead to credit truncation, affecting businesses and consumers alike.

Understanding GST invoices

A GST invoice is an electronic document generated when goods or services are exchanged. It contains important information such as the date of issue, product code (HSN/SAC), and various tax rates (SGST, CGST, IGST), indicating tax liability and creditable amount.

Revised invoice in GST

Sometimes, billing errors or changes in circumstances require correction. This requires invoice revisions, which must be reported on the monthly return. The changes may include price changes, tax rates, or other cases requiring supplementary invoices or credit notes.

Revised invoice meaning and examples

For example, a revised invoice is issued under GST when there's a need to correct invoices issued before obtaining GST registration. This typically happens during the transition from implementing GST to receiving the official registration certificate. Any invoices issued during this time must be rectified with a revised invoice within one month of receiving the registration certificate.

What are Supplementary Invoices?

Supplementary invoices rectify deficiencies in original tax invoices under GST. These deficiencies may include underestimation of taxable values, resulting in lesser taxes being charged. Suppliers can issue supplementary invoices to accommodate incremental changes, including debit and credit notes.

How to amend GST invoice

Follow these steps to adjust the GST invoice.

1. Determine the need: Determine whether any invoices issued prior to obtaining GST registration need correction.

2. Submit revised invoices: Once identified, submit revised invoices for all such invoices within one month of receiving the registration certificate.

3. Include mandatory details: Ensure the GST revised invoice format includes essential details such as:

- Supplier's name and address

- Supplier's GSTIN

- Nature of invoice (e.g., "Debit Note," "Credit Note," "Revised Invoice," or "Supplementary Invoice")

- Invoice serial number

- Invoice date

- Recipient's name, address, and GSTIN

- Details of unregistered recipients

- Original invoice serial number

- Differential tax amount or taxable value

- Authorized person's signature

Use of credit notes

Credit notes are issued when the tax collected on the invoice exceeds the supply tax due. They act as accounting adjustments and determine the exact value and tax rate.

The key differences

- Revised vs. Supplementary Invoices: Revised invoices correct mistakes in previously issued invoices, and on the other hand, supplementary invoices correct deficiencies in the original tax invoices.

-  Debit note vs Credit note: Debit notes are issued when customers return goods to sellers, whereas credit notes are issued when suppliers receive returned goods from buyers. In both cases, it sets off or adjusts the rates and taxes accordingly.

Understanding how to revise invoices and issue supplementary invoices is important for businesses and consumers working in the GST environment. By reporting transactions correctly and without errors in line with  GST rules, governed by the GST Council, ensure fair and transparent taxation for all.

FAQs

Q1: Can I revise my GST return if I make a mistake?

Ans: No, there is no provision for adjustment of returns under GST. You can, however, report the reported change via supplementary invoice or credit note.

Q2: When should supplementary invoices be issued?

Ans: They must be issued within one month from the issuance date of the original invoice. Supplementary invoices should be raised in situations where deficiencies are found in the original tax invoice. These situations may include rejected goods, changes in tax rates, variations in taxable values, short receipts, or supplier refunds.

Q3: How frequently should supplementary invoices be updated on the GSTN portal?

Ans: All supplementary invoices have to be updated monthly on the GSTN portal. For interstate supplies below Rs. 250,000, a consolidated invoice may be issued.

Q4: What are some situations that require issuing supplementary invoices?

Ans: These include rejected goods, changes in tax rates, variations in taxable values, short receipts, or supplier refunds.

Q5: Can recipients issue debit notes under GST?

Ans: Though recipients can issue debit notes, it has no impact under GST. Only debit and credit notes issued by suppliers affect transactions.

Q6: Which documents affect transactions under GST?

Ans: Only debit and credit notes issued by suppliers affect transactions.