Gst invoicing of restaurant

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Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2017 I have my restaurant and i have clients who pay advance to me at the start of the month and they eat food daily. Do i need to issue invoice to them daily for daily consumption under GST or i can issue consolidated invoice at the end of the month ????

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 May 2017 You have to issue invoice for the advance received.

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2017 i will issue receipt voucher in case of advance received my question is the food the client will eat daily i need to issue invoice daily or i can issue on monthly basis ???

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Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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26 July 2024 In the context of GST for a restaurant, the invoicing requirements for daily consumption and advance payments can vary based on the nature of the transactions and the applicable GST rules. Here's how you can manage invoicing for your restaurant:

### 1. **Advance Payments**

**Receipt Voucher:**
- When you receive an advance payment, you should issue a **receipt voucher** or **receipt cum invoice**. This voucher should indicate the amount received as an advance and specify that it will be adjusted against future supplies.

### 2. **Daily Consumption**

**Invoice Requirements:**
- **GST Invoicing:** Under GST rules, you are generally required to issue a tax invoice for each supply of goods or services. For restaurants, where services are provided on a daily basis (like food consumption), you would typically issue an invoice at the time of supply, which is generally the time of the service (i.e., when the food is consumed).

**Options for Issuing Invoices:**

1. **Daily Invoicing:**
- **Pros:** It aligns with the GST requirement of issuing invoices at the time of supply.
- **Cons:** It may be cumbersome if you have many clients consuming food daily.

2. **Consolidated Monthly Invoicing:**
- **Cons:** While consolidated billing is not explicitly allowed under GST for daily consumption, you may opt for a consolidated invoice if it reflects the complete and accurate details of all supplies made during the month. You must ensure that the consolidated invoice is issued within the time limits prescribed under GST law (e.g., by the 10th of the next month for the previous month's supplies).

**Practical Approach for a Restaurant:**
- **Issue Invoices Periodically:** While issuing daily invoices may be burdensome, you could consider issuing invoices periodically (e.g., weekly or monthly) if you have a structured agreement with your clients. However, ensure that the GST compliance requirements are met, and you document all transactions properly.

### 3. **Documenting the Transactions**

**Record Keeping:**
- Keep detailed records of all advances received and adjust them against the actual invoices issued.
- Maintain documentation of daily transactions to support the consolidated invoice if you choose to issue one.

### Summary:

- **Advance Payments:** Issue a receipt voucher for the advance payments.
- **Daily Consumption:** Ideally, issue invoices at the time of consumption. For practical reasons, you might issue periodic invoices (e.g., monthly) but ensure compliance with GST rules and document transactions accurately.
- **Consultation:** Given the complexities, consulting with a GST professional or accountant to ensure that your invoicing practices comply with GST laws and meet the requirements of your business is advisable.

By aligning with these practices, you can maintain GST compliance while managing the operational aspects of your restaurant effectively.