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Issue GST invoice on national holiday

02 October 2023

may we issue GST invoice on national holiday?
we are manufacturing company
is that any restriction on GST or factory act or any other?

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7 Replies

Asha Kanta Sharma (Manager - Finance & Accounts) (36355 Points)
Replied 02 October 2023

I do not think isssuance of an invoices can create any problems here.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 02 October 2023

Generally the National Holiday is declared a leave to employees.
In the said day working is restricted...
May be any got any approval from local authorities for working then We can do any works...
Otherwise it's make problem..

SOURAV SAMANTA (106 Points)
Replied 02 October 2023

Thank you sir

sabyasachi mukherjee (27574 Points)
Replied 02 October 2023

The correct answer is there must not be any commercial transaction on a national holiday.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 02 October 2023

Originally posted by : sabyasachi mukherjee
	The correct answer is there must not be any commercial transaction on a national holiday.

Thampi,

Go and check industrial area. You can get some practical knowledge...

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ACCOUNTANT (Student) (559 Points)
Replied 04 October 2023

GST invoice is basically for the purpose of claiming ITC.So for claiming ITC the invoice on a national Holiday shall not be valid for consideration.Either invoice shall be issued before Delivery on a prior date or the very next working day after Holiday.

Asha Kanta Sharma (Manager - Finance & Accounts) (36355 Points)
Replied 04 October 2023

I do not think GST ITC can be linked with the working or nor working of the organisation. These days we are also working from home even offices are shut we should be able to create invoice whenever we want at least without any actual delivery of the goods or services on any day including national holiday. The functioning of the orgnisations on three national holidays will largly be supervised by local authorities in terms of travel / delivery etc

I do not think GST Portal is linked with any Holidays Calender to check the same nor it does disallows ITC claim if so. Even if it does, the same can be challenged in the court of law.

The holidays are declared under the Negotiable Instruments Act, 1981. They are usually applicable to Government departments more particularly to banks. They are not generally adopted by factories and other establishments in the private and public sector. Provisions relating work days are provided in the Standing Orders of establishments as per the Industrial Employment (Standing Orders) Act, 1946. In which provisions relating to employees working on various days as per the requirement of the organisation is mentioned and specification is given regarding their off days for working.

The factory legislations in our country also do not provide for the grant of festival holidays to industrial workers. But inspite of that, some quantum of festivals and national holidays with pay is prevalent in factories and other industrial establishments. Generally, the occupiers of factories fix the number of such holidays in their standing orders or service rules. Apart from this, States are very generous in declaring paid holidays.

National and Festival Holiday Act, which is applicable to all establishments in the country, irrespective of under which law it is formed it is mandatory to grant leave on following 3 days, i.e. 26th January (Republic Day), 15th August (Independence Day) and 2nd October (Gandhi Jayanti). For rest of the festival holidays the declaration depends on the discretion of the concerned States and establishments. Number of festive holidays can differ from state to state.

All the organisations need to remain closed on the three national holidays. But incase due to some reasons if the organisation needs to be functioning on these days, they need to take prior approval from concerned authority. And the employees those are functioning are entitled to get double wages for the day, and some of the states have placed the provision to claim for compensatory leave. The matter concerning to national holidays is subject of Central Legislations, though some states do have made provisions for compensatory leave to the workers who have worked on these national holidays or paying them double wages.

Provisions relating to working on weekend, is not specified under any law or act. But provisions relating work days are provided in the Standing Orders of establishments as per the Industrial Employment (Standing Orders) Act, 1946 which specifies provisions relating to employees working days and their off days for working on weekends.

There are some Acts relating to specific schedule of employment. One of them being The Weekly Holidays Act, 1942[1] which provides provisions relating to weekly holidays to persons employed in shops, restaurants and theatres. Provisions relating to it are as follows:

(1) Every shop shall remain entirely closed on one day of the week, which day shall be specified by the shopkeeper in a notice permanently exhibited in a conspicuous place in the shop.

(2) The day so specified shall not be altered by the shopkeeper more often than once in three months.

(3) Every person employed otherwise than in a confidential capacity or in a position of management in any shop, restaurant or theatre shall be allowed in each week a holiday of one whole day. And there will not be any deduction in their salary/wages for the day.

There are provisions relating to National Holidays and weekend holidays which are mentioned under Shops and Establishment Act of the concerned states. So there applicability depends upon the state legislation. These state laws provide provisions for holidays that are to be provided by establishments to the person employed in the jurisdiction of that state.