On Sep. 30, IND BSE issued clarification on the contract note format.
IND BSE updated the requirements on the contract note cum tax invoice format.
Background
Rule 48(4) of the CGST rules, 2017 requires certain taxpayers to prepare the invoice by including certain particulars contained in form GST INV-01 (i.e. tax invoice).
This is after obtaining an invoice reference number (IRN) and QR code by uploading information contained therein on common goods and services tax electronic portal.
Further it is prescribed that a registered person whose aggregate turnover in a financial year exceeds IDR 500 crores, shall prepare an invoice, in terms of rule 48.
This is in respect of the supply of goods or services or both to a registered person.
Every person to whom this is applicable is required to incorporate additional field w.r.t IRN and QR code along with the relevant information as required under GST rules.
Format of contract note cum tax invoice has been prescribed as per the GST rules.
Requirements
Members shall have the option to send the contract note in combination with the tax invoice or send them separately in accordance with their internal policy.
Those opting to send contract note cum tax invoice shall incorporate additional fields such as IRN and QR code in the existing format in accordance with rule 48(4).
Members are requested to follow IRN/QR code related guidelines, if any, prescribed by GST/CBDT/other relevant authority, if sending separately format has been outlined.
The guidelines are subject to the member following the practice consistently for a minimum period of 1 year and practice not being changed in intermediate period.
Members may issue contract note cum tax invoice or contract note without compromising contents of contract note format by including additional relevant details.
Members need to ensure that stamp duty, securities transaction tax, commodities transaction tax and goods & service tax are mentioned separately in the contract note.
Mar. 2022 Format Change
On Mar. 25, 2022, IND BSE, NSE issued a revision regarding the contract note format.
Follows IND SEBI introduced T+1 rolling settlement optional basis, see #115329.
Members will use one of two formats depending on if they opt to send contract note cum tax invoice or whether they send the contract note and tax invoice separately.
May 2024 Revised Contract Format
On May 13, 2024, IND BSE revised format of contract note and tax invoice.
Brokers will issue electronic contract notes (ECNs) with single weighted average price (WAP) for trades across exchanges per security/common contract for the total traded quantity per settlement; format of contract notes has been revised accordingly.
Revised with removal of exchange identification, inclusion of single WAP for trades across exchanges per contract; straight-through processing (also referred to as STP) systems along with service providers are instructed to update for implementation.
Members must attach trade details as annexure when showing consolidated obligations in contract note; compliance with revised format required from Aug. 1, 2024.
May 13, 2024 IND NSE Revised Format
On May 13, 2024, IND NSE issued circular on contract notes revised format; includes the same information as that issued by IND BSE on the same date, as detailed above.
STP centralized hub, STP service providers are advised to make necessary system changes and compliance with the revised format is required from Aug. 1, 2024.
Document dated May 13, 2024, received from IND NSE May 15, summarized May 20.
Jul. 2024 IND BSE Compliance Deadline Extended
On Jul. 31, 2024, IND BSE extended the deadline for compliance with its notice dated May 13, 2024 above with regard to the revised contract note format, to Oct. 31, 2024.
Regulators
IND BSE; IND NSE
Entity Types
B/D; Corp; Exch
Reference
Nt 20240731-51, 7/31/2024; Cir NSE/INSP/61999, 33/2024, Nt 20240513-22, 5/13/2024; Cir NSE/INSP/51772, 22/2022, Ntc 20220325-59, 3/25/2022; Ntc 20200930-26, 9/30/2020
