IND BSE Contract Note and Tax Invoice

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 13, 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
  • 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.

Regulators IND BSE; IND NSE
Entity Types B/D; Corp; Exch
Reference 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
Functions Compliance; Financial; Operations; Product Administration; Reporting; Tax; Trading
Countries India
Products Securities
Regions AP
Rule Type Final
Rule Date 9/30/2020
Effective Date 8/1/2024
Rule Id 87704
Linked to N/A
Reg. Last Update 5/13/2024
Report Section International

Last substantive update on 05/20/2024