As a registered GST Dealer, You are required to provide your customers with GST Invoices, also known as GST Bill. An Invoice or a GST Bill is a list of items sent or services rendered, along with the amount payable. ClearTax BillBook Software allows you to create GST compliant invoices FREE of costs.
When you are a GST Registered company you must provide your customers with GST-compliant invoices for the selling of products and/or services. Your registered GST vendors will send you GST-compliant purchase invoices.
Information Required in a GST Invoice
The tax invoice issued must clearly state information in the 16 headings below:
- Provide Name, Address and GSTIN.
- Date of issue.
- If the receiver is not licensed AND the value exceeds Rs. 50,000 then the invoice will bear:
- Name of recipient and address.
- Address of Delivery.
- State name and State code.
- HSN Code for product or service accounting.
- Goods / Service overview.
- Goods (number) and unit quantities (meter, kg etc).
- Average value of the goods/services offered.
- Taxable supply value following modification of any discount.
- Tariff applicable for GST
(CGST, SGST, IGST, UTGST and Cessation levels clearly indicated).
- Amount of tax
(Breakdown of CGST, SGST, IGST, UTGST anc cessation amounts).
- Place of distribution and destination state name for interstate sales.
- Delivery address as separate from the place of delivery.
- That GST is payable against reverse charge.
- Signature of the supplier.
- Using 2-digit HSN code for transactions between 1.5-5 crores.
- Turnover greater than 5 crores will use 4-digit HSN code.
- The number of digits of the HSN code for goods or the service accounting code and the different classes of registered persons should be indicated.
Tax Invoices Format for Exports
In export situations, a statement stating that GST was charged on these exports must also be included in the invoice. For such instances the text to be used is as follows:
- “Supply Meant for Export on Payment of IGST”.
- “Supply intended for export under bond or letter of enterprise without IGST payment”.
The following information relating to the seller are required in export invoices:
- Name and Address of the buyer
- Delivery Address
- Destination Country
- Number and Date of Application for removal of goods for export
Reason for Not Issuing a Tax Invoice
A registered individual is not permitted to issue tax invoices when:
- The target is not an Enrolled Person.
- No such invoice is required of the receiver.
In respect of all such supplies, the registered individual shall give a consolidated tax invoice for such supplies at the end of each day.
The registered person MUST issue a tax invoice in every other case. Failure to do so in an offense under the GST Act and will be punishable.
Raising Copies of Invoice
The GST Act requires companies to keep copies of all their invoices. This is furnished in detail below.
Invoices for Supply of Goods
They will plan the invoice in triplicate. They’ll specifically be classified as:
- Initial Copy for receiver use.
- Duplicate Copy for conveyor use.
- Triplicate Copy for Supplier’s use.
Invoices for Supply of Services
The invoice shall be prepared in duplicate and marked specifically as:
- Initial Copy for receiver use.
- Duplicate Copy for Provider use.
From GSTR-1 shall include the serial number of invoices issued during the tax period along with other purchase details.
Registered persons who sell exempted goods/services or pay GST under the composition scheme will have to issue a separate supply bill. We have a separate article that addresses this subject.
Here’s a video on invoice generation using ClearTax GST Software:
Which are the compulsory fields which a GST Invoices should have?
In general, a tax invoice is issued to charge the tax and pass the tax credit on inputs. A GST Invoice should include the following mandatory fields-
- Invoice Number and Data
- Customer Name
- Shipping and Billing address
- Customer and taxpayer’s GSTIN (if registered)
- Place of supply
- HSN code/SAC code
- Item details i.e. description, quality (number), unit (meter, kg) etc. total value.
- Taxable value and discounts
- Rate and amount of taxed i.e. CGST/SGST/IGST.
- Whether GST is payable on reverse charge basis
- Signature of the supplier
If the recipient is not licensed AND the amount exceeds Rs. 50,000 then the invoice will bear:
- Name and Address of the recipient.
- Address of delivery.
- State Name and State Code.
For your reference, here’s a Sample Invoice:
Until when are your supposed to problem Invoices?
The GST Act set time limits for issuing GST Tax Invoices, revising GST Bills, Debit notes and Credit notes.
The due dates for sending an invoice to clients are as follows:
How to configure your GST Invoices?
Using your business logo to customize your invoice. The ClearTax BillBook enables free cost development and customization of GST Invoice.
What other Invoice types are these?
Bill of Supply
A supply bill is similar to a GST Invoice except that supply bill does not contain any tax amount since the seller can not charge the buyer GST, In cases where tax can not be paid, a Delivery Bill is issued:
- Registered sell exempt goods / services.
- Registered individual has opted for the method of composition.
Invoice-cum bill of supply
According to Notification No. 45/2017 – Central Tax of Oct-13-2017.
If a registered person supplies an unregistered individual with taxable and exempts goods/services then he may issue a single “Invoice-cum-bill of supply” for all such supplies.
If the multiple Invoices value is less than Rs. 200 and the buyer is unregistered, the seller can issue a daily aggregate or bulk invoice for multiple invoices.
You many have given 3 invoices in a day of Rs. 80, Rs. 90 and Rs. 120 for instance. In such a scenario, you will issue a single invoice to be called an aggregate invoice totaling at Rs. 290.
Debit and Credit note
If the amount payable by the buyer to the seller rises, a debit note is given by the seller:
- Tax Invoice has lower taxable value than the sum payable.
- Tax Invoice has a lower tax value than the amount payable.
If the value of the invoice decreases, the seller issues a credit note:
- Tax Invoice has a higher taxable value than the sum payable.
- Tax Invoice has a higher tax value than the amount payable.
- Purchase shall refund the products to the seller.
- Resources considered to be lacking.
Could invoices given before GST be revised?
Hey, Invoices given prior to GST may be updated. Under the GST regime, before obtaining the permanent registration certificate, all dealers must apply for provisional registration.
To clarify the procedure for issuing a revised invoice see this picture below:
It refers to all invoices issued between the date of GST implementation and the date on which your certificate of registration was issue.
As a dealer you have to file a updated invoice against the already published invoices.
How many copies should be given of the Invoices?
For Goods – 3 copies
For Services – 2 copies
GST Invoicing under Special Cases?
In some cases, the government has received relaxations on the invoice format submitted by the manufacturer, such as banking, passenger transport etc.
FAQ on GST Invoice
Ques:- What is the difference between the date and the due date of the Invoice?
Ans:- The date of Invoice refers to the day the invoice is produced on the bill-book, while the due date refers to the date the payment is due on invoice.
Ques:- Why to file reverse-charge invoice?
Ans:- In the case of GST payable at reverse charge on the GST Invoice you must also note that tax is charged at reverse charge.
Ques:- Was it mandatory to retain serial number on voice?
Ans:- Sure, Serial number of invoice must be strictly preserved. You may adjust the format by sending the GST department official a written intimation along with reason for the same.
Ques:- May I sign my invoice digitally via DSC?
Ans:- Yeah, invoice can be signed digitally via DSC.
Conclusion on GST Invoice in India
I suppose you have followed each step carefully for GST Invoice : Rules & Bill Format in India for PC. After downloading this software, open this software.
I suppose your PC does not installed this software. Then, you can download this software from ItTechGyan website. Now import that software file to your PC.
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