Exotel follows a prepaid model. Once a payment is made, the final payment receipt will be provided 7-10 days after the payment. This slight delay in giving out the receipt vouchers is because of the current product and operational challenges we have post GST implementation. We are trying to automate this over the next quarter, though. Once done, the receipt vouchers will be available in real-time.
After that we will provide you with monthly usage tax invoice with the help of which your accounts will file for GST return.
What is Receipt Voucher?
This gets generated whenever a client(prepaid) makes a payment. It contains GST component in it. For instance, if a client has made a payment of INR 1,180/- it essentially comprises of a payment of INR 1,000/- and tax component of INR 180/- (18% of the service value).
What is a Tax Invoice?
Tax Invoice is generated at the end of each month determining the usage of services by each client. For instance, if the client has utilized service for INR 500/- the invoice is generated for Rs.590/- along with the Tax component.
Why can't Tax Invoices be issued before payment?
Tax Invoice is given on usage. If you are a prepaid customer, there will be no usage at the time of payment. Which is why we provide a proforma invoice on request so that the payment can be released.
We observed that a very few companies ask for a proforma invoice to make a payment because of their operational reasons.
What is the GST credit which will be shown in the client’s portal?
Since GST component is shown both in the invoice and the receipt voucher, the confusion of which value reflects in the GST portal arises. Under GST Act, the client will be able to claim credit only based on usage (i.e.) though the client has made a payment of INR 1,180/- initially with GST component of INR 180/-, he will be eligible to claim only towards his actual usage which is actually Rs.90/- for the service utilized. Therefore, credit of only Rs.90/- will be shown in his portal for that particular month. The balance amount will be reflected based on the usage in the subsequent months.
As per Section 16(1),(2) of the GST Act, Input credit can be claimed only based on utilization and not on payment.
Why is GST component missing in the invoice?
For prepaid clients for whom we have received payments before 01-July-2017, we would have technically collected Service Tax. The credits granted for those payments which remain unutilized by the end of June, would have been subsequently utilized in the month of July for which we started raising GST invoices. Since, we have already collected Service Tax for that usage, we cannot charge them again with GST, because of which we have shown it as Non-taxable service*. As these invoices does not have any GST component in it, though these have got generated after 01-July-2017, they do not bear any credits for the client in the client’s GST portal.
(*) Non-taxable service shows the value of credits utilized from their credit balance as on 30-June-2017 as per section 142(11) of GST Act, 2017
When will the credits reflect on the client’s GST portal?
Example: For those invoices raised in February 2018, the credits will be already appearing on the portal. For March, the credit will get reflected by 5th to 10th of May. Going forward, it will be reflecting by 10th to 15th of every subsequent month in which the invoice is getting generated.
In case you're unable to follow through any of these, do please feel free to reach out to our Customer Happiness team on 8088919888 or write to us on firstname.lastname@example.org - we'll help out!