The new Goods and Services Tax (GST) invoicing rules were introduced in March 2022 and took effect from 1 April 2023. These rules aim to replace the current tax invoicing rules with a new framework for information requirements. Most GST registered businesses can continue issuing tax invoices and GST credit notes without altering their systems. However, the new rules allow for a broader range of invoicing practices, such as e-invoicing systems.
It is essential to understand the new terminologies introduced under the rules:
- “Taxable Supply Information” (TSI): This replaces tax invoices and contains the necessary information for taxable supplies subject to GST.
- “Supply Correction Information” (SCI): This replaces credit notes or debit notes and includes the required GST information for corrections to supplies.
For tax invoices after 1 April 2023, businesses have several options. They can provide TSI, a list of information in a format of their choice, instead of using the traditional “tax invoice” document. There is no mandatory format for providing GST information; it can be shared through email, electronic invoices, or e-invoicing systems. Businesses need to ensure that their existing tax invoices include the correct GST information and do not need to issue TSI if the customer is not registered for GST or if the amount charged is below $200 (including GST).
Regarding credit notes or debit notes after 1 April 2023, businesses can continue issuing them under the new rules, but it’s essential to include the required GST information. In some cases, changes to credit note/debit note templates may be necessary to identify the related TSI (tax invoices) correctly. However, businesses don’t need to issue SCI if the error in the TSI has no GST impact.
For businesses in a GST group, they can issue tax invoices or provide TSI under their own name and registration number, or under the name and registration number of the GST group representative. There might be certain notification requirements to the tax authorities for issuing under another entity’s name.
Regarding Buyer Created Tax Invoices (BCTI), businesses don’t need approval from the tax authorities but must have the correct contractual documentation in place. BCTIs should be retained to support input tax claims.
It’s important to note that different rules may apply to imported goods or services, or acquisitions from non-GST registered persons. Additionally, there could be other practical implications resulting from the implementation of the new GST invoicing rules. For further guidance, please contact our team here at BCA.
