Tax Invoice and GST Returns

[Kaustubh Karandikar]

XYZ issued Tax Invoice i.e. date of the invoice is June’21 but the goods were physically moved out of the factory in July’21 and therefore e – way bill and lorry receipt is also dated July’21. In the GST Monthly Returns, this transaction is required to be shown in June’21 or July’21?

[Rajagopalan Ranganathan]

Sir,

If the invoice is issued in June 2021 it will be reflected in GSTR-1 of June 2021. Since you are removing the goods in July 2021 it is advisable to cancel the June invoice and issue a fresh invoice in July 2021because according to Section 31 (1) of CGST Act, 2017 "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:

[DeepakArya DGA]

Sir,

This invoice being issued in the month of June 2021 should be reported in GSTR-1 for the m/o June 2021 only.

[Shilpi Jain]

Agree. The time of supply arises in Jun '21. That is the time when the liability to pay tax arises. Hence disclosure required in Jun '21 returns

AI Summary

GST Reporting Period Dispute: Invoice Dated June 2021, Goods Dispatched July 2021. Should It Be June or July Return? A query was raised regarding the correct reporting period for a GST transaction where the invoice was dated June 2021, but the goods were dispatched in July 2021. One respondent advised canceling the June invoice and issuing a new one in July to align with the CGST Act's requirements. However, two other respondents agreed that the invoice should be reported in the June 2021 GST returns, as the liability to pay tax arises at the time the invoice is issued.