Dawn of New Financial Year! Still confused over Invoice series to follow?
Contributed by: CS Payal Kataria
As per GST Rules, at the onset of every New financial Year, follow unique Invoice Series. On 04/04/2019 GST Portal issued
GST was rolled in the mid of FY 2017-18 and even at the entry of third Financial Year under GST regime, there is ambiguity over Invoice Series to be followed. Let’s remove the ambiguity and understand the concept lucidly. Rule 46 (b) and Rule 49(B) talk about Invoice Series. Below is the extract of Rule 46(b) and Rule 49(b):
Extract of Rule 46 (b) of CGST Rules 2017
“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;”
Bill of Supply
Extract of Rule 49 (b) of CGST Rules 2017
“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;”
- Consecutive Serial Number means successive and next number to be used and there should not be any break and missing number, once
particularseries is adopted inthe beginning of Financial Year. Example: Inthe beginning of FY 2019-20, First Invoice issued, bearing Invoice No. 0001 then next Invoice to be issued be 0002, 0003, 0004 … and so on. After issuing 0004 one can’t jump to 0009. Don’t forget to keep properrecord of cancelled invoices.
- Not Exceeding Sixteen Characters means total characters used in invoice number,
will beupto16 and it may contain any combination of alphabets or numerals or special characters hypenor dash and slash. Example: Invoice No: PKA001/2019-20 contains 14 Characters, allowed, Invoice No: PKA0001/09/2019-20 contains 18 character, not allowed
- One or Multiple series means in the same Financial year one or multiple Invoice series can be used. Example:
Mr.A registered person is doing both Export and domestic supplies, he can use separateInvoice series for export and domestic supplies.
- Unique for Financial year means
sameseries or number cannot be used for nextfinancial year. Example 1: If in financialyear 2018-19 Invoice series PKA01 to PKA50 is used and lastinvoice raised in FY 2018-19 is PKA50 then in next FY 2019-20 Invoice Series PKA01 to PKA50 cannot be used and of course Invoice No. PKA51, PKA52, PKA53 … and so on can be used in next FY i.e FY 2019-20. Example 2: Mr, A registered person started his business on 10th April 2018 and use printed bill book for making Tax invoices, and First Invoice No in bill book is 01 and he used invoice No. 30 till the end of Financialyear 2018-19 .Now for nextfinancial year i.e. 2019-20 he can use samebill book and next Invoice No 31 to be used in the Financial year2019-20. For the financial year 2019-20 he cannot use invoice No. 01, 02, 03, … 30 as these numbers are already used in FY 2018-19
Consequences Highlighted By GST portal
If the provisions of Rule 46 or Rule 49 are not adhered to, apart from being a compliance issue, taxpayers may face problem while generating E-Way Bill on E-way bill system or furnishing their Form GSTR 1 or for applying for refund on GST Portal.
Conclusion: Thus to avoid consequences of not following Rule 46 and 49, better imbibe the correct knowledge of related provisions and do business peacefully.
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