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Invoicing under GST

Basic understanding of GST Invoicing

An invoice is an instrument issued by a supplier of goods or services to a recipient. A tax invoice shall be issued by the registered person supplying taxable goods or services or both.

If a taxpayer does not issue a tax invoice to his customer, who is a registered taxable person, then his customer loses the ITC claim and the taxpayer loses its customers.

Particulars of the GST Tax Invoice

  • Name, Address and GSTIN of the supplier
  • If recipient is registered then, his Name, Address and GSTIN.
  • Invoice Number and Date of issue
  • Description of goods or services e.g unit price, quantity, total value
  • Place of Supply
  • HSN/SA Code
  • Total amount of supply of goods or services or both.
  • Rate of Tax (Central tax (CGST) + State Tax (SGST)/ Union Territory Tax (UTGST) (intra-state) OR IGST (inter-state)
  • Any tax is payable on reverse charge basis
  • Signature or digital signature (DSC) of the supplier or his authorized representative.

Meaning of Supplier & Recipient

Supplier is a person supplying taxable goods or services or both including an agent acting on the behalf of supplier.

Recipient of goods or services means:

A person liable to pay consideration for supply of goods or services or both.
Person to whom goods are delivered
Where consideration is not payable for the supply of service then the person to whom service is given.

Manner of Issue of Invoice

Taxable Supply of Goods Taxable Supply of Services
Invoices shall be issued in triplicate Invoices shall be issued in duplicate
Original copy for the recipient
Duplicate copy for the transporter
Triplicate copy for the supplier
Original copy for the recipient
Duplicate copy for the supplier

Time Limit of issue of Tax Invoice/ GST Invoice

In Case of Supply of Goods In Case of Supply of Services
The tax invoice for supply of goods must be issued on or before or – The tax invoice must be issued either –
  • Delivery of goods or making goods available to recipient.
  • Removal of goods* for supply to recipient, where the supply includes movement of goods.
  • Before the provision of serviceor
  • Within 30 days from the date of supply of the service (45 days in case of banking company, insurance company or financial institution)

*Where removal of goods means-

  • Dispatch of goods by the supplier
  • Collection of goods by the recipient.

Types of Invoices under GST

  1. Tax Invoice
  2. Bill of Supply
  3. Debit Note
  4. Credit Note
  5. Aggregate Invoice

1. Tax Invoice – A tax invoice shall be issued by the registered person supplying taxable goods or services or both

2. Bill of Supply – A bill of supply has to be issued if there is no GST output.

It is similar to tax invoice but a Bill of Supply is issued when GST is not applicable on a transaction or where GST is not to be recovered from the customer.

For example: A registered dealer supplies goods or services, which are exempted from GST or where a registered dealer follows composition scheme of supplying goods.

3. Debit Note – The supplier issue a debit note to the recipient when:

  • Taxable value in the Tax Invoice is found to be less than Taxable value of supply of goods/services.
  • Tax charged in the Tax Invoice is found to be less than Taxable payable of supply of goods/services

4. Credit note – The supplier issue a debit note to the recipient when:

  • Taxable value in the Tax Invoice is found to exceed the taxable value of supply of goods/services.
  • Tax charged in the Tax Invoice is found to be less than taxable payable of supply of goods/services
  • The goods supplied are returned by the buyer.
  • Goods or services supplied are found to be deficient.

5. Aggregate Invoice – Where the value of multiple invoices is less than Rs. 200 in single day and the buyer is unregistered, in that case the seller can issue an aggregate invoice for the multiple invoices on a daily basis.

For example, Seller has issued 3 invoices in a single day of Rs.70, Rs.100 and Rs. 90. In such a case, seller can combine and issue a single invoice, amounting to Rs260, which is called an aggregate invoice.

Invoices for Export or supplies to SEZ

Exports in India for goods or services are under the category of Zero-Rated supply. No GST will be levied on the sale of goods or services outside the India. In case of goods or services exported to Special economic zones (SEZ) units, the invoices shall contain the following information:

  • Name and address of the recipient
  • Full Address of delivery
  • Name of the county destination

HSN/SAC Code on the GST Invoice

Harmonized system of nomenclature code (HSN) is used for goods and Accounting Code (SA) is used for services. No HSN Code is to be mentioned on the invoice if the turnover is less than or equal to Rs.1.50 crores for the preceeding financial year.

If the turnover is more than Rs.1.50 crores but less than Rs.5 crores in the preceeding financial year the HSN code at 2 digit level is required.

If the turnover is more than Rs.5 crores in the preceeding financial year the HSN code at 4 digit level is required.

Normally, code used for the classification of goods is 8 digit HSN Code and code used for the classification of services is 6 digit SA Code.

Download GST Invoice Format in Word and Excel.

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