By : CA Alok Krishan
Section 31(3) in clause (d) prescribes 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. Clause (e) requires that id advance received and recorded in an advance voucher is not followed by supply of Goods or Services or both, the amount may be repaid and a Refund Voucher may be issued against it.
Rule 5 of the Tax Invoice, Credit and Debit Note Rules prescribe that the receipt voucher issued pursuant to Section 31(30)(d) shall contain the following particulars:
- Name, Address and GSTIN of the Supplier
- A Consecutive Serial Number, that can be a maximum of sixteen characters. It may contain alphabets, numbers or special characters hyphen ( – ) and slash ( / )
- Date of its Issue
- Name, Address and GSTIN or UIN, if registered, of the recipient
- Description of Goods or Services
- Amount of Advance taken
- Rate and Amount of tax (CGST, SGST, IGST, UTGST, Cess)
- Place of Supply along with the Name of State and its Code, in case of inter-state trade
- Whether the tax is payable on Reverse Charge basis
- Such receipt voucher can be signed manually or through digital signatures, by the Supplier or his Authorized Representative
The rules further provide that where at the time of receipt of advance, the rate of tax is not determinable; the tax shall be paid at the rate of eighteen per cent which shall be later adjusted in invoice as per actual rates. It further provide that where the nature of supply (ie. Inter State or Intra State supply) is not determinable at the time of receipt of advance, the same shall be treated as inter-State supply.
CA Alok Krishan is a practicing Chartered Accountant with a professional degree in law at Chandigarh. He has a strong 22 years post qualification experience out of which around 10 years has been with corporate sector and the balance as a practising Chartered Accountant with specialisation in Indirect Taxes. The views expressed are his personal views and source of law should be referred to before relying on the same.