All that you need to know about GST Invoicing
Invoicing is a crucial aspect of tax compliance for every business. It is essential to be aware of the rules of invoicing when you get GST registration. Let us understand these in detail.
In the current tax regimes, two types of invoices are issued:
I. Tax Invoice
When a registered taxable person supplies taxable goods or services, a tax invoice is issued.
II. Bill of supply.
The bill of supply shall be issued in the following cases:-
- Where the registered supplier supplies exempted goods or services
- Where the registered supplier is paying tax under the composition scheme.
1. How many copies of Tax Invoices are to be issued?
When goods are supplied, the supplier is required to issue three copies of the invoice– Original, Duplicate, and Triplicate.
- Original – for Recipient
- Duplicate – for Transporter
- Triplicate – for Supplier
2. Who shall issue the GST invoice?
- Address, and
- GSTIN of the supplier
3. What are the different aspects of a GST invoice?
The various aspects of the GST invoice are explained below in the video:-
4. What else is needed to be given on GST invoice?
Here are other important particulars to be filled in a GST invoice:-
- A consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolized as “-” and “/” respectively, and any combination thereof, unique for a financial year.
- Date of its issue of invoice
- Name, Address and GSTIN or UIN, if registered, of the recipient
- Name and address of the recipient and the address of delivery, along with the name of
- State and its code, if such recipient is unregistered and where the value of taxable supply is INR 50,000 or more
- HSN Code of goods or Accounting Code of services
|Serial Number||Annual Turnover in the preceding financial year||Number of Digits of HSN Code|
|1||Up to rupees 1.5 crores Nil||Nil|
|2||more than rupees 1.5 crores and up to 5 crores||2|
|3||more than rupees 5 crores||4|
- Description of goods or services
- Quantity in case of goods and unit or Unique Quantity Code thereof
- Total value of supply of goods or services or both
- Taxable value of supply of goods or services or both taking into account discount or abatement, if any
- Rate of tax (central tax, State tax, integrated tax, Union territory tax or cess)
- Amount of tax charged in respect of taxable goods or services (central tax, State tax,
- integrated tax, Union territory tax or cess)
- Place of supply along with the name of State, in case of a supply in the course of inter-
- State trade or commerce
- Address of delivery where the same is different from the place of supply
- Whether the tax is payable on reverse charge basis
- Signature or digital signature of the supplier or his authorized representative
Get Sample Invoice
5. When to issue a tax invoice in case of supply of taxable goods by a registered dealer?
a) Where supply involves movement of goods
Tax invoice shall be issued before or at the time of removal of goods for supply to the recipient
b) Where supply involves other than movement of goods
Tax invoice shall be issued before or at the time of delivery of goods or making available to the recipient
6. When to issue a tax invoice in case of supply of taxable services by a registered person?
Tax invoice shall be issued before or after the provision of service but not extending 30 days from the date of supply of service.
- Where a supplier is an insurer, banking company, financial institution, a non-banking financial company - Tax invoice (or any other document) shall be issued within 45 days from the date of supply of service.
- A registered person is not required to issue tax invoice or bill of supply in the following cases:-
- Value of goods or services or both is less than against a single transaction;
- A recipient is not having GST registration.
If above two conditions are fulfilled registered person may issue a consolidated tax invoice (instead of separate invoices) for such supplies at the close of each day in respect of all such supplies.
7. When to issue Receipt voucher and refund voucher?
A registered person shall on receipt of advance payment in respect of any supply of goods or services or both, shall issue a receipt voucher, evidencing receipt of such payment.
Where subsequently no supply of goods or services or both is made against such advance, then the registered person shall issue a refund voucher against such payment.
8. Who will issue GST invoice in case of Reverse Charge mechanism?
A registered person receiving goods or services or both from any unregistered person shall be liable to pay tax under reverse charge mechanism. In such a case the registered person is liable to issue an invoice on himself on the date of receipt of goods or services or both.
And also, issue a payment voucher at the time of making payment to the supplier.
Where a registered person receives goods or services or both from any unregistered person
shall not be required to issue an invoice to himself and pay tax, under the following
- Where the supply of goods or services or both is intrastate (i.e. within the state)
- Where the transaction value of goods or services or both does not exceed per day in aggregate from one or all supplier.
9. How will the registered person invoice in case of continuous supply?
In case of continuous supply of goods
Where the supply of goods is continuous or on concurrent basis say for example, through wire, cable, pipeline or another conduit, the supplier may issue invoice on a periodic basis.
In case of continuous supply of services
- Where the due date of payment is can be identified from the contract, the invoice shall be issued on or before the due date of payment
- Where the due date of payment cannot be identified from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment.
- Where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that event.
10. What if the goods are sent on approval or return basis?
Where goods are sent or taken on approval for sale or return, the invoice shall be issued on acceptance of goods by the recipient or six months from the date on which such goods were sent, whichever is earlier.
How would the person deal for all the invoices issued between the period " date of implementation of GST, and date of issue of Registration Certificate"?
The dealers will have to issue a revised invoice against the invoice already issued between the said periods. The revised invoice will have to be issued within 1 month from the date of issue of the registration certificate.
11. When can a person issue a supplementary invoice?
Supplementary tax invoice can be issued by a taxable person in a case where any deficiency is found in a tax invoice already issued by a taxable person. It can be in form of a debit note or a credit note
12. When can a person issue Credit Note?
- Original tax invoice has been issued and taxable value in the invoice exceeds the actual taxable value
- Original tax invoice has been issued and tax charged in the invoice exceeds actual tax to be paid
- Recipient refunds the goods to the supplier
- Services are found to be deficient
13. When can a person issue Debit Note?
A taxpayer can issue a debit note when-
- Original tax invoice has been issued and taxable value on the invoice is less than the actual taxable value.
- Original tax invoice has been issued and tax charged in the invoice is less than the actual tax to be paid
- When extra goods are being delivered to the purchaser
If you need any assistance regarding GST registration, or GST return filing procedure, feel free to contact our business advisor at 8881-069-069.
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