ISSUE OF SALE BILLS

[BAL KRISHAN GARG]

Dear All Members , Mr. A having TIN NO.and dealing in tax free goods or First Point Tax Paid Goods like atta,maida ,besan etc.and also having agency from branded companies like rose brand ,shakti bhog etc.and making retail sales in the area including sales to customers having TIN NO. . My issue is that whether he can issue a retail invoice / or tax invoice ? Mr.A is having his Sales Tax Registration No. before applicability of VAT and he is filling his vat returns although of exempted / or First Point Tax Paid goods . Whether he should issue Retail Invoice / or Tax Invoice to all his customers or Tax Invoice to customer having TIN No. because he is not charging any tax amount to all his customers . Thanks to all BAL KRISHAN GARG

[Darshan Jain]

Under the MVAT Act, a registered dealer can issue tax invoice only if he is covered under the regular scheme of VAT i.e. not under composition scheme for retailer. Further, he is supposed to issue tax invoice only if he sell any taxable goods to another registered dealer. In case of exempt goods or goods subjected to first point tax, it is not advisable to issue a tax invoice as no tax credit is be passed on to the buyer. In my opinion, therefore, you may issue retail invoice after confirming that there is nothing against it in your local VAT Act. If the dealer is registered under MVAT Act he should issue a Bill or cash memorandum instead of a tax invoice.

AI Summary

Tax invoice issuance: guidance on when registered dealers should issue tax invoices versus retail bills. A registered dealer under the regular VAT scheme may issue a tax invoice when supplying taxable goods to another registered dealer; dealers under a composition scheme should not issue tax invoices. For exempt goods or goods subject to first point tax, issuing a tax invoice is generally inadvisable because no input tax credit is passed to the buyer; instead issue a retail invoice, bill, or cash memorandum, subject to local VAT law.