When to issue revised tax invoices and file first return in GST

After GST registration, applicant receives a certificate in form GST REG-06. In this certificate, you will find the effective date of registration different from the date on which it is granted by the government. Effective date is generally picked up from the application that you have filled up while applying for registration. According to your application, this will be the date from which you are liable to charge GST to the recipient of goods or services or both.

However, you can’t charge GST on your supplies before getting GSTIN from the government. Therefore, to cover this period for which you have not charged GST on your supplies due to procedural issues, the government has introduced the concept of first return and revised invoice. In this article, we will be discussing;

  • when to issue revised tax invoices, and 
  • when to file first return.

First return in GST

As per section 40, every registered person who has made outwards supplies in the period between the date on which he became liable to registration till the date on which registration has been granted to declare the same in the first return furnished by him after grànt of registration.

Government has not prescribed any specific form to file a first return. Therefore, GSTR-3B or 4 can be used as applicable to file the first return.

Period of first return

As stated above, the registered supplier shall file first return only when such person has effected taxable supplies of goods or services or both between the effective date of registration and the actual date on which GST registration certificate is issued. This means it’s the period from which the supplier is liable to register till the date on which certificate is granted.

What is revised invoice and for which period it should be issued

As per law, a person shall apply for GST registration within 30 days of becoming liable for registration. On the basis of application, a GST certificate will be issued. This process of registration will result in a time lag between the effective date of registration and date on which GST registration is granted. Effective date of registration is the date on which the supplier became liable for registration. You need to specify the effective date of registration while applying for the certificate.

To give effect to these taxable supplies made between the date of the effective date of registration and date on which GST certificate is granted, the registered person has to issue revised tax invoice for the tax liable to be paid under GST law. Such revised tax invoices have to be issued within 1 month from the date of issuance of certificate of registration.

A revised tax invoice shall contain the following particulars;

  • The word revised invoice, wherever applicable, indicated prominently.
  • Name, address and GSTIN of the supplier
  • Invoice number not exceeding 16 characters in one or multiple series unique for a financial year, containing alphabets  or numerals or special characters, hyphens or dash and slash and any combination thereof.
  • Date of issue of the document
  • Name, address of the recipient
  • GSTIN of the recipient, if registered. In the case of UIN, that has to be mentioned.
  • Address of delivery along with the name of the state and its code, if the recipient is unregistered
  • Serial number and date of the corresponding tax invoice, or as the case may be, bill of supply.
  • Signature or digits signature of the supplier or his authorised representative. If its issued electronically, then such a signature is not required.

GST law enables the recipient to avail input tax credit or ITC based on these revised tax invoices.

Consolidated revised tax invoices to unregistered recipient

In case of unregistered recipients, GST law allows you to issue a consolidated revised tax invoice in respect of all taxable supplies made to each recipient, separately. However, if the value of inter state supplies exceeds Rs 2.5 lakhs per recipient, then consolidated revised invoice should not be issued.

Input tax credit for the first return period

As per section 18(1), the person after getting new registration, shall be entitled to claim credit of input tax for inputs held in stock, inputs contained in semi-finished goods or finished goods held in stock by the registered person on the day immediately preceding the date from which such person is liable to registration.

However, in the case of voluntary registration u/s 25(3), the supplier is entitled to take credit of input tax in respect of inputs held in stock, inputs contained in semi-finished goods and finished goods held in stock on the day immediately preceding the date of grant of registration.

Please note, input tax credit with regard to capital goods held as fixed assets as on the date immediately preceding the date from which such person is liable to registration, is not available. Therefore, if you are planning to purchase capital assets for your business, then we suggest you to go for it after getting GST registration.

Furnishing declaration to claim ITC

To claim ITC, the registered person has to furnish a declaration in form GST ITC-01 electronically through the common portal stating that he is eligible to avail credit of input tax on inputs held in stock, inputs contained in semi-finished goods and finished goods held in stock. Such declaration has to be furnished within 30 days from the date of his becoming eligible to claim ITC.

GST ITC-01 must specify the details relating to inputs lying in stock, or inputs contained in semi-finished or finished goods lying in stock or as the case may be capital goods as on the date specified above.

For your reference, the specified dates are:-

  • On the date immediately preceding the date from which the person becomes liable to pay tax – in case of a claim u/s 18(1)(a).
  • On the date immediately preceding the date of grant of registration – in case of claim for voluntary registration u/s 18 (1)(b).
  • On the date immediately preceding the date from which the person becomes liable to pay tax u/s 9 for switching to normal scheme from composition scheme- in case of claim U/S 18(1)(c).
  • On the date immediately preceding the date from which exempted supply of goods or services or both made by the registered person becomes taxable – in case of claim u/s 18(1)(d).

Form GST ITC-01 is required to be certified by a practicing chartered accountant or cost accountant if aggregate value of claim on account of central tax, state tax and integrated tax exceeds Rs 2,00,000.

Example

XYZ Limited commenced business of providing information technology services in India on 1st of May in Bangalore. Its aggregate turnover exceeds Rs 20,00,000 on 3rd of September. To get GST registration, XYZ limited applied for it through a common portal on 25th September, which was then approved by the government and granted a certificate of registration on 4th October.

In this case, the effective date of registration is 3rd September and the grant of registration certificate is 4th October. For this period, XYZ limited can issue revised invoices for all those taxable supplies made between 3rd September and 4th October as per the provisions discussed above.

is a fellow member of the Institute of Chartered Accountants of India. He lives in Bhubaneswar, India. He writes about personal finance, income tax, goods and services tax (GST), company law and other topics on finance. Follow him on facebook or instagram or twitter.

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