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Invoice (section 31)

R.v. Badgali (12 Points)

12 May 2020

If we do not issue invoices with in prescribed time as per section 31 , then what will happen?

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5 Replies

Nihit Somani (109 Points)
Replied 12 May 2020

Tax Invoices which are issued helps in determining the time of supply. Time of supply means the month in which goods are delivered or services are rendered, which helps us to compute GST liability for that month.

Now, as per section 12 and 13 of the CGST Act, the date of issuance of invoice is important. In case invoice is not isaued within the prescribed time limit as per section 31, then too time of supply concept will be applicable on deemed basis I.e. last date on which invoice was required to be issued.

Accordingly, tax payer need to deposit the GST to the govt. In case failure, additional interest and penalty may attract.

Thanks and Regards,
Nihit Somani

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CA Raghavendra Reddy M (40 Points)
Replied 12 May 2020

I agree with Mr. Nihit

CA Haritha Komma (Chartered Accountant) (1147 Points)
Replied 12 May 2020

Yaa.

Need to pay interest for delay in payment of tax..

Penalty may be attracted for non-compliance of law..

Piali Roy Chowdhury (605 Points)
Replied 12 May 2020

General Penalty upto Rs. 50,000/- under Section 125 of the CGST Act 2017 may be levied for non-compliance of the Provisions of the CGST Act 2017, along with Interest and Late Fees.

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 13 May 2020

Section 125 will invoke only if you have not issued the Invoice. But since the invoice is issued but not according to section 12,13 of CGST Act , the interest can be levied.
Note : As per Section 126 No penalty can be impose for minor breaches of tax regulations or procedural requirements.

As per