What is Receipt Voucher and When
should Receipt Voucher Should be Issued:
Sometime in the normal trade of business the
register person may received advance payment from the recipient which need to
be properly recorded in the books of account. A registered person shall, on
receipt of advance payment with respect to any supply of goods or services or
both, issue a receipt voucher or any other document, containing such
particulars as may be prescribed,
evidencing receipt of such payment. The register taxpayer is also required to
upload the details of receipt voucher in GSTR-1 as per the provision of GST
Law.
Time of supply determines when the taxpayer is
required to discharge tax on particular supply. Time of supply provisions are
governed by Section 12 to 14 of the CGST Act, 2017. As per the said provisions,
the time of supply is determined with reference to the time when the supplier
receives payment with respect to the supply as well as a few other references
like issue of invoice, receipt of goods etc. In general, the time of supply is earliest of issuance of invoice or
receipt of payment. Therefore, in case of advance received for any supply,
time of supply is fixed at the point when advance is received, irrespective of
the fact whether the supply is made or not. Accordingly, GST needs to be paid
with reference to the time at which advance is received, if any, and this
requires compliances with a few procedures, documentation and reconciliation of
taxes paid on the advances and supply made. As per the explanation 1 to Section
12 of the CGST Act, 2017 a “supply” shall be deemed to have been made to the
extent it is covered by the invoice or, as the case may be, the payment. For
instance, an advance of Rs. 10 lacs is received for a supply worth Rs. 1 crore
to be made in future. The time of supply to the extent of advance received i.e.
Rs.10 lacs shall be at the time of receipt of advance and for the balance
amount of Rs. 90 lacs, it shall be determined with reference to date of issue
of invoice and other parameters.
Content
of Receipt Voucher
A receipt
voucher shall contain the following particulars, namely,-
(a) name,
address and Goods and Services Tax Identification Number of the supplier;
(b) a
consecutive serial number not exceeding sixteen characters, in one or multiple
series, containing alphabets or numerals or special characters-hyphen or dash
and slash symbolised as "-'' and "/" respectively, and
any combination thereof, unique for a financial year;
(c) date of its
issue;
(d) name,
address and Goods and Services Tax Identification Number or Unique Identity
Number, if registered, of the recipient;
(e) description
of goods or services;
(f) amount of
advance taken;
(g) rate of tax
(central tax, State tax, integrated tax, Union territory tax or cess);
(h) amount of
tax charged in respect of taxable goods or services (central tax, State tax,
integrated tax, Union territory tax or cess);
(i) place of
supply along with the name of State and its code, in case of a supply in the
course of inter-State trade or commerce;
(j) whether the
tax is payable on reverse charge basis; and
(k) signature or
digital signature of the supplier or his authorised representative:
Exemption from payment of tax at
the time of Advance Receipt
Recognizing the fact
that small businessmen may be burdened with compliance issues with regard to
GST on advances, the Government has come
out with Notification no. 66/2017 dated 15.11.2017, whereby all suppliers
of goods who have not opted for composition scheme, have been exempted from the
burden of paying GST on Advances received. For such categories of taxpayers,
time of supply would arise only at the time of issue of invoice and they need
to discharge GST liability accordingly. But the supplier of services are
required to pay GST at the time of receipt of advances.
Treatment of Advance Received in GSTR-1
Table 11A of FORM
GSTR-1 captures information related to advances received, rate-wise, in the tax
period and tax to be paid thereon along with the respective place of supply
(POS). Table 11B captures adjustment of tax paid on advance received and
reported in earlier tax periods against invoices issued in the current tax
period. The details of information relating to advances would be submitted in
Table 11A only if the invoice has not been issued in the same tax period in
which the advance was received. Whereas adjustments made in respect of advances
received during the earlier tax period, but invoices issued in the current tax
period would be reflected in Table 11B
Disclaimer:
All the Information is based on the notification, circular and order issued by
the Govt. authority and judgement
delivered by the court or the authority information is strictly for educational
purposes and on the basis of our best
understanding of laws & not binding on anyone.
