QUESTION

Sir, We are exporting goods to China, and generating normal accounting invoice, and for generating IRN no. we are filling detail of this accounting invoice in E invoice portal through Template in this template then we fill detail in bill to Column the buyer name and address thereafter in SHIP to column, we fill address of port of india and CHA name, and we taken print out of this E invoice after filling all column and we generate E way bill upto Port of India and send goods with this E invoice, accounting invoice/bill and E way bill, we want to know that our proceedure is correct or not ? (2) we have to write IRN no. in accounting bill then we generate accouting invoice (3) we are right in writing the name of CHA and address of PORT in Ship to column, pl guide what is the proper proceedure and what detail we have to fill in E invoice and when we are support to generate this IRN, (5) we can generate this IRN after removal of goods or issue of account debit note and credit note in Next month. please guide there is a lot of confusion in this regard, when we have to generate it for accounting entries which supplier gives in year end and book in his books of account in 31st March, but generating E invoice (IRN) next month.

ANSWER

REPLY 1: In Normal procedure there is no need to generate an Accounting invoice with E-Invoice. So far as GST is concerned, the formalities of it is completed with generation of E-invoice. If you need an Accounting invoice for your ERP control etc, then you can do so. There is no restriction in GST. To avoid any confusion in Accountancy and to facilitate reconciliation of Accounting and GST records, it will be good if you mention corresponding E-invoice number in your Accounting invoice. Make sure that the Accounting entries are executed either by E-invoice or by Accounting invoice. Do not allow inputs in computer with both of them (either of them as available).

In case of Export you are required to generate commercial invoice as per requirement of your customer. Your customer is not concerned with your E-invoice. For export you have to prepare 2 invoices. One for movement of goods from your Business Place to Port. This invoice is entertained by GST/Custom Officer for allowing Export at zero rate or for refund of ITC/GST. Other one as per requirement of your customer.

REPLY 2: We understand your question as follows:
Sometimes supplier generate invoices at the closing of month to achieve sale target but the material is dispatched in next month.

Section 31 of CGST Act related to Tax Invoice is reproduced below:

(1) A registered person supplying taxable goods shall, before or at the time of,'
a) removal of goods for supply to the recipient, where the supply involves movement of goods; or
b) delivery of goods or making available thereof to the recipient, in any other case,
issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed

Section 31 allows supplier to issue invoice before delivery of goods. In this case Time of supply will be the date of issue of invoice.

Suppose invoice is generated in the month of December and goods are transported in the month of January.

In this case you have to deposit tax (GST) with the filing of GSTR-1 for the month of December.

Rule 55 of CGST Rules relates to movement of goods without issue of invoice. Here the term without issue of invoice does not mean that invoice is not issued but it means that the invoice is not issued at the time of movement of goods. Since in your case the invoice is already generated and not issued at the time of transportation of goods. So you should generate delivery challan. Mention on Delivery challan that invoice is already issued on ____ date.

E Way Bill will be generated against this Delivery Challan. The E-invoice is to be generated with the invoice in the month of December (Reply dt. 09/04/2021)