Know Everything About GST Invoicing, A Full GST Invoice Guide

Know Everything About GST Invoicing, A Full GST Invoice Guide

Among all the economic reforms, GST has made a milestone in the history of Indian economy. On July 1st, 2017 when GST was launched, every business, every sector and every industry was worried and anxious about the newly launched taxation system.

With the launch of Goods and Services Tax Act, came along the GST invoicing. Invoicing is an integral and an important part of GST. The GST invoice is a significant document which is issued by a seller to a buyer at the time of the exchange of goods and/or services.

What is GST invoice?

The GST invoice is a piece of legal document that is compact with the list of all the goods and services provided by the seller and received by the buyer. The invoice also has mentioned the amount due for payment.

For every registered dealer, it is mandatory to issue GST invoice on the supply of taxable services and goods.

The invoice becomes a legal document to show the title on the property purchased after the payment is done by the buyer against the invoice.

What Are The Mandatory Information That Can Be Filled in the GST Invoice?

If you are a GST registered dealer, it is quite essential for you to issue the GST invoice in the exchange of goods and services. Indian Government with the launch of GST has also implemented new and comprehensive invoice format. The new GST invoice format will make easy the work of tax computing on the goods and services.

The newly implemented GST invoice template is having the following mandatory fields:

  • GSTIN,
  • Name,
  • Address,
  • Serial No. Of Invoice,
  • Date of Invoice,
  • Place of supply,
  • SAC or HSN Code,
  • The details of items (quantity, unit, meter, kgs or ltr etc.)
  • Any discount if applicable along with the taxable value
  • The amount and rate of all taxes such as CGST – SGST and IGST.
  • Signature of the supplier
  • Mentioning the condition if GST is payable on reverse charge basis.

Note – In case, if invoicing amount is more than 50000, and if the supplier is unregistered than the GST invoice must carry:

Address of delivery,

Name and address of the recipient, and

Code of state and the name.

What Are The Time Limits For Issuing Invoices?

Under the GST regime, there are various invoices issued, each with its individual condition attached to it. Following are the conditions:

1. At the time of Supply of Goods in Normal Case

Case 1

  • When Goods are in the movement – the invoice is generated by the registered dealer at the time of removal of goods to the recipient.

Case 2

  • Invoice is generated when the goods are delivered to the recipient.

2. Receipt Voucher

This document is issued as an advance receipt on the supply of goods and services.

3. Supply of Services

  • In Normal Case – Invoice issued within 30 days of completion of services.
  • Involvement of Bank / Financial Institution – It should be issued within 45 days.

4. Continuous Supply of Goods and Services

In the case of continuous supply of goods and services. A registered dealer must issue an invoice periodically along with a statement confirming the payment.

5. At the Time of Reverse Charge

  • The supply of goods and services by unregistered supplier – Invoice issued by the registered person.
  • The invoice will be issued at the time when goods and/or services are received.
  • The recipient is liable to pay tax.

What Are the Approaches of Issuing GST Invoice?

Case 1 – Supply of Goods. 3 Copies Will Be Issued

  • Original will be kept by the recipient.
  • The duplicate copy will be kept by the transporter
  • Triplicate will be kept by the supplier

Case 2 - Supply of Services. 2 Copies Will Be Issued

  • Original Will be Kept by the recipient
  • The duplicate will be kept by the supplier.

Are There Any Other Important Documents Apart of GST Tax Invoice?

Be it a transaction of goods or the transaction of the services an Invoice plays a vital role in all kinds of transactions. All these transactions involve lots of other things apart from GST invoice. Let’s discuss each individually:

1. Bills of Supply

It is an essential document which is issued by a registered supplier in following cases:

  • When the supplier deals in exempted goods or services.
  • When the supplier is registered under the composition scheme.

Following are the things that are included in the Bills of Supply:

  • Unique and well-structured Serial Number.
  • Name, Address, GSTIN and other details of the receiver.
  • Use of the term “Value” during the supply of goods and services.

2. Debit Note

The debit note is issued by the supplier in the case where the tax charged in the invoice is less the tax than actually payable or chargeable. The debit note is also known as supplementary invoice and must be raised within 30 days of price revision.

3. Credit Note

Credit note on the contrary to debit note is issued by the supplier in the case where the tax charged is less than actually payable or chargeable. The credit note is also issued when the recipient returned the goods.

GST Invoices and Other Relevant Details

  • Invoice date and due date are two different things. Invoice date is when the invoice is created on bill book whereas the due date is the date when the payment is due on the invoice.
  • It is mandatory to mention on the GST invoice when the GST is payable under reverse charge.
  • For a user, it is mandatory to maintain the invoice serial number. Though if you wish you can change the format of the invoice.
  • The format of serial number can be changed with the written application to GST department with a valid reason.
  • You can also digitally sign your invoice through DSC.

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