September 22, 2023


General Blog

All You Need To Know About Tax Invoices

With the implementation of GST (Goods and Service Tax) on July 1, 2017, the people of India only had to pay a single tax in the form of GST, which is to be paid through the tax invoice. So what exactly is a tax invoice, and why do we need it? 

A tax invoice is a legal document issued by the seller to the customer by a registered supplier that depicts how much tax is to be paid by the purchaser. It is issued when the purchaser is not the end-user. If the goods are sold to the end-user, a retail invoice is issued by the seller to the purchaser. If the dealer makes a taxable sale, the tax-registered customer needs an invoice to claim their tax credits. A tax invoice [ใบกำกับภาษี, which is the term in Thai] is issued when the goods are sold with the intent of resale, and the customer is GST registered. 

The invoices are dispatched before or after the provision of service. A maximum period of 30 days is allowed for the issuance of tax invoices after the service provision. In the case of Banking and Financial Services Institutions, the period is within 45 days.

Details Consisting In A Tax Invoice:

  • The name “Tax Invoice”.
  • Name, contact details, and address of the seller.
  • Date of issue of the invoice.
  • Tax identification number.
  • Price per unit.
  • Name and address of the purchaser.
  • The number of goods.
  • Taxes on each item.
  • The total amount with taxes.
  • Details of the payment.

The bill is similar to the tax invoice, except it does not have any tax amount. If the invoice is issued before the GST, the dealer has to issue a revised invoice within 30 days from the date of issuance of the registration certificate.

Importance Of Tax Invoice:

  • It is required for the claim of GST deduction on the purchases.
  • It determines the time of supply.
  • It contains the details of supplies made in a particular taxable period.
  • It is a necessary document to avail Input Tax Credit.
  • It determines when the person can claim his input tax on the tax invoice.

There are certain situations in which tax invoice need not be issued:

  • During the supply of liquid gas where the quantity is unknown.
  • When the principal supplier sends the goods to the job worker, etc.

In such cases, a delivery challan is issued. After the completion of the supply, the supplier issues the tax invoice. Consult professionals to gain more information about the concept of Stock Inventory System [ระบบสต๊อกสินค้า, term in Thai] and Tax invoices in general.