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

GST invoices require manual signatures or proper digital signatures, scanned signatures insufficient under Section 31 CGST Act A registered person queried whether GST tax invoices must be signed and if scanned signatures are acceptable for IT service exports under LUT. Legal experts clarified that Section 31 of CGST Act 2017 and Rule 46 require invoice signatures, but electronic invoices under IT Act 2000 are exempt from signature requirements. Digital signatures are permitted, but scanned signature copies don't qualify as valid digital signatures. The consensus indicates three options: manual signing, proper digital signatures, or electronic invoices compliant with IT Act 2000 provisions, with scanned signatures being legally insufficient.