GST Tax Invoices to be Signed or Not

[Shrey Shah]

Hi,

I recently received my GST number and started exporting IT services to an international client under LUT and I issue invoices every month. I had 2 queries:

1) Is it mandatory to sign the Tax Invoices?

2) If yes for signing, then can I upload my signature (like a scanned copy of my signature) and attach it to the invoices digitally or is it mandatory to print the invoice and sign it manually?

Help is much appreciated! Thanks a lot

[Sadanand Bulbule]

Plz refer Section 31 of the CGST Act, 2017 read with Rule 46 of the CGST Rules, 2017 for particulars to be incorporated in the invoice, more particularly the following proviso:

Provided also that the signature or digital signature of the supplier or his authorised representative shall not be required in the case of issuance of an electronic invoice in accordance with the provisions of the Information Technology Act, 2000 (21 of 2000).

Reply

[Shilpi Jain]

Digital signature is allowed. However, your signature in scanned copy may not be digital signature.

[Yash Shah]

As per Rule 46(q) of the CGST Rules, 2017, it is mandatory for the registered person to sign the invoice. By interpreting the above-mentioned rules, we can say that a person can have three options :

1)Sign manually on the invoice

2) Sign digitally

3) Issue an invoice according to the IT Act,2000, so there would be no requirement of issue with the signature

Basically Digital signature is a mathematical technique used to validate the authenticity and integrity of a digital document, message, or software.

So by scanning a copy of the signature and attaching it to every invoice is not considered a Digital signature, which is not valid as per the rule.

So scanned signature is, in our view is not allowed; the client has to sign manually.

AI Summary

Invoice signature requirement: invoices must bear supplier signature unless issued electronically under the IT Act, or signed digitally. Signature requirements for GST tax invoices require supplier signature unless the invoice is issued electronically under the Information Technology Act, in which case no signature or digital signature is required. Where a signature is necessary, compliance may be achieved by a manual handwritten signature or a valid digital signature; a scanned image of a handwritten signature attached to an electronic invoice is not a valid digital signature and does not meet Rule 46 requirements.