- What is GST Invoice? Who should issue GST Invoice?
- Mandatory Fields under GST Invoice
- GST Invoicing: When to issue a GST invoice?
- Supply of Goods
- Supply of Services
- When not to issue a GST Invoice
- GST Invoice Format
- Types of Invoices under GST
- How many copies of the GST Invoice?
- For Sale of Goods
- For Supply of Services
- GST Invoice format for Exports
The implementation of GST in India has been a huge success for businesses as it has unified the taxation system across the country. Under the rules of GST, service providers, vendors etc. all have to produce GST compliant invoices to their customers in order to convey transparent information about the taxes levied. An invoice is essentially a list of goods/ services provided to the customers along with information of amount payable for the same and taxation levied. In this article, we will look at the GST invoice format which you need to furnish to the consumers of your goods and/or services.
What is GST Invoice? Who should issue GST Invoice?
As we discussed above, an invoice is basically listing down goods/services purchased. A GST invoice is basically an invoice in which the gross payable includes the details of the GST levied on the sale. Generally, a GST invoice has details of CGST and SGST at the prescribed GST Rates.
Here’s an example of a GST Invoice.
If you are a business looking to sell goods and services in India and you will have to register GST and issue GST compliant invoices. Also, your dedicated vendors/suppliers will also have to issue GST-compliant purchase invoices.
Mandatory Fields under GST Invoice
Tax invoices like the GST invoice are intended for levying taxes as well as for passing along the Input Tax Credit. Whenever you issue a bill in the GST invoice format, make sure you include the following fields in the in the invoice:
- Date of issue and the Invoice Number
- Billing Address as well as Shipping Address
- Customers and /or Taxpayer’s GSTIN [If Registereed]
- Place of Supply
- HSN Codes / SAC Code
- Description of Goods and Services availed Quantity (Number), Units (Kg, Litres) as well as the total value
- Total Taxable value as well as discounts(if applicable)
- Types of GST levied ie. CGST, SGST, IGST or, UTGST
On local sales, CGST and SGST will be charged
In the case of Intra-state supplies, IGST will be charged
In the case of supply of goods in Union Territories, UTGST will be charged
- Details of Reverse Charge Mechanism whether or not it is applicable.
- Digital Signature or Normal Signature of Supplier or signatory authority
If the recipient is unregistered and the value of the invoice exceeds ₹ 50,000 the invoice should mandatorily carry:
- Name and Address of Recipient
- Delivery Address
- State code and the State Name
GST Invoicing: When to issue a GST invoice?
There are two broad cases in which you should issue an invoice to customers. These are as follows:
Supply of Goods
Supply of goods could be of types:
Where supply requires goods to be moved from one place to another: GST invoice is to be issued before commencing the movement of goods
Where supply doesn’t require movement of goods: GST invoiced to be issued on or before delivery of goods to the customer
Supply of Services
In the case of supply of any kind of services to a particular customer, the invoice should be produced and delivered within 30 days of original supply of service.
If the supplier of the service is a bank or financial institution, they should produce an invoice within 45 days of the supply of service.
In case, a taxpayer making tax payments under reverse charge mechanisms receives goods/services from an unregistered supplier, the receiver needs to issue an invoice on the date receipt of the respective goods/services.
When not to issue a GST Invoice
A trader/taxpayer who has performed GST enrolment is under no obligation to issue a tax invoice to the customer in the following cases:
- Customer refuses/rejects taking an invoice/ does not need a tax invoice
- Customer/ recipeint is not a GST registered individual. You might have to print an extra copy of the invoice if the customer demands it.
A registered trader has to issue consolidated tax invoice at the end of each day
GST Invoice Format
Types of Invoices under GST
Given below are the 5 types of invoices under GST
- Tax Invoice
- Bill of Supply
- Aggregate Invoice
- Debit Note
- Credit Note
How many copies of the GST Invoice?
A copy of the tax invoice has to be shared with multiple parties involved in the transaction for the sale/ purchase of the goods and /or services. In accordance with the same, the number of copies you require for the same are as follows:
For Sale of Goods
Original Copy: To hand over to the recipient
Duplicate Copy: This will go to the transporter of the said goods. Not mandatory if the supplier has an invoice reference GSTN (GST Network) portal
Triplicate Copy: The supplier can retain this invoice for reference, bookkeeping and accounting purposes.
For Supply of Services
Original Copy: The recipient of the particular services will get this copy.
Duplicate Copy: This copy is for the supplier himself.
GST Invoice format for Exports
In India, the export of any goods or services has been put into the category of a zero-rated supply. This essentially means that no GST will be levied on the sale of goods and services to recipients outside India.
However, invoices for such sales made should be generated by the supplier. The invoices should contain the following information:
- Name and address of the recipient
- Delivery Address and Country
- Number as well as Date of Application for removal of goods for export
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