Introduction

  • GST Invoice is required to be issued as it is a document evidencing supply of goods and services which become the basis for a charge of tax.
  • Invoicing forms a crucial function when it comes to the purpose of execution of a transaction.
  • On every sale/purchase, an invoice is issued by the supplier i.e. the person who is making the sale.

Current Invoice Regime

In the current tax regime, there are different types of invoices which are issued:GST Invoice

GST Invoice Regime

  • When a registered taxable person supplies taxable goods or services, he has to issue a GST invoice.
  • The serial number shall be furnished electronically in FORM GSTR 1 of invoices issued during a tax period.
  • Thereafter, issue of the following 2 documents takes place:
    • GST Invoice
    • Bill of supply    

GST Invoice

Particulars

Format of Invoice

GST Invoice Sample

Bill of Supply

  • Generally, the GST invoice is issued in order to charge the tax from the recipient and also pass on the credit.
  • In GST there are however some instances where the recipient is not a registered person or where the supplier is not allowed to charge any kind of tax and hence a GST invoice can’t be issued.
  • Instead, another document called Bill of Supply is issued.

The Cases where a registered supplier needs to issue the bill of supply:

Particulars

  • Name, Address & GSTIN of supplier
  • Consecutive Serial Number
  • Date of issue
  • Name, Address & GSTIN (if registered) of the recipient
  • HSN/SAC code
  • Description of Goods, Quantity & Value
  • Signature or Digital Signature

Special Provisions for Composition Taxpayers

  • The person who is registered as a composition taxpayer shall at the top of the bill of supply issued by him, mention the words- “not eligible to collect tax on supplies”.
  • because person registered as the composite taxpayer is not eligible to collect tax on the supplies from his buyer
  • Rathe the composite taxpayer himself pays the tax at a special rate laid down for the composite dealers.

Number of GST Invoice copies issued

GST Invoice Copies

  • In case of supply of goods, the supplier shall issue 3 copies of the invoice
    • Original
    • Duplicate, and
    • Triplicate.
  • Whereas, in the case of supply of service, he shall issue only 2 copies of the invoice.

Original GST Invoice

When a buyer makes the purchase he gets the first copy of the invoice, marked as ‘Original for Recipient’.

Duplicate copy of GST Invoice

  • The duplicate copy of GST invoice is issued to the carrier of the goods i.e., the transporter in order to be presented as evidence as and when it is required and is also marked as the ‘Duplicate for the Transporter’.
  • If the supplier has obtained an invoice reference number then transporter doesn’t need to carry the invoice.

Triplicate copy of GST Invoice

This copy is retained by the supplier for his own record.

Time Limit to issue GST Invoice

The GST Model law has defined the time limit for issue of GST tax invoices,  debit note and credit note and revised bills.

A registered dealer will issue a GST tax invoice 

For Goods

The dealer will issue the tax invoice:

  • where supply involves movement
    • On or before the time when supply involves removal of goods
  • where supply does not involve movement
    • On or before the time when the recipient receives the delivery

For Services

Invoice has to be issued within 30 days (45 days in case of banks and NBFCs) of supply of services.

Special cases of GST invoice

Export

  • The GST invoice in the case of export of goods or services, shall clearly mention the words :
    • “supply for export on payment of Integrated tax” or
    • “supply for export under bond or letter of undertaking without payment of integrated tax”,
  • It shall contain the following details in addition to those already listed above:
    • Name and address of the recipient
    • Address of delivery
    • Name of the country of destination

Reverse Charge

  • The recipient of the supply is liable to pay tax in the case of reverse charge mechanism.
  • Every person who is paying tax on reverse charge basis has to mention this fact in his tax invoice that is being issued.
  • A registered person who is liable to pay tax under reverse charge has to mandatorily issue an invoice in respect of goods or services both received by him from the supplier who is not registered under the GST.
  • There will be a single copy of such invoice which he shall retain for return filing purpose.

Input Service Distributor

An invoice or credit note issued by an Input Service Distributor (ISD) should have the following details:-

  • Name, address, and GSTIN of the ISD
  • Consecutive serial number
  • Date of issue
  • Name, Address, and GSTIN of the recipient to whom the credit is distributed
  • Amount of the credit distributed
  • Signature or digital signature

Revised Invoice and Debit-Credit Notes

  • Supplier issues Invoice to the recipient who accounts invoice in his books of accounts.
  • If the tax is involved in such sales, the tax is paid on the basis of such invoice issued by the supplier.
  • However, if a Tax Invoice is already issued by the supplier and later if such tax invoice amount is required to be changed, it can

Inadmissible Input Tax Credit

Any invoice issued for tax payable in following cases should prominently contain the words “INPUT TAX CREDIT NOT ADMISSIBLE”:

  • Section 74, states “determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts”
  • Under section 129  provisions for “detention, seizure, and release of goods and conveyances in transit” is given.
  • Section 130 provides for “confiscation of goods or conveyances and levy of penalty”.

List of facts on GST invoice

The Central Board of Excise and Customs has given a list of clarifications on invoicing relating to GST:

  • Taxpayers are free to design their own GST invoice format.
  • They shall only mention certain fields under the GST Law.
  • The time period prescribed for issuing an invoice for goods is anytime before its delivery and for services while for services it is within 30 days from the date of supply.
  • Small taxpayers like small retailers and vendors who deal in a large number of small transactions up to a value of INR 200 shall not issue an invoice for every such transaction.
  • They can issue one consolidated invoice at the end of each day.
  • The transporter shall carry one copy of the invoice in a normal transaction.
  • To keep compliance burden low for small taxpayers, GST law provides that taxpayers need not mention the HSN Code with an annual turnover of up to INR 1.5 crore.
  • Keeping in view the large number of transactions in the insurance, banking and passenger transport sector, taxpayers need not mention the serial number in their invoices and the address of the customer.
  • When the goods are transported for delivery but quantity to be supplied is not known at the time of removal, the good may be removed on delivery challan and invoice may be issued after delivery.
  • If VAT invoice is issued for non-taxable supplies then no need to issue separate Bill of supply.

Conclusion

You can get comprehensive assistance with GST Registration and GST Return Filing. You can also use our GST software for doing end-to-end GST compliance.