How to Invoice under GST - Invoicing under GST

In India, Every business needs to know about the GST Invoice rules. Generally, an invoice is a commercial instrument issued by a seller to a buyer. As per GST law, it is not necessary that only a person supplying goods or services needs to issue an invoice but also “any registered person buying goods or services from an unregistered person needs to issue a payment voucher as well as a tax invoice.” Under GST, the type of invoice to be issued depends upon the category of registered person making the supply.

GST Invoice

In GST, there are two types of invoice:

Tax Invoice
Bill of Supply

1. Tax Invoice

Tax invoice is raised, when a registered taxable person supplies taxable goods or services and also when a registered person is receiving supplies from unregistered persons,then a tax invoice needs to be issued by such registered person

2. Bill of Supply

If a registered person is dealing only in exempted supplies or is availing the composition scheme (composition dealer), then such a registered person needs to issue a bill of supply.

An invoice or a bill of supply need not be issued if the value of the supply is less than Rs. 200/-, subject to specified conditions.

Importance of tax invoice under GST:

Tax invoice under GST is an essential document for the recipient to avail Input Tax Credit (ITC). A registered person cannot avail Input Tax Credit unless he is in possession of a tax invoice or a debit note.

Contents of GST Invoice:

1. Tax Invoice

There is no format prescribed for an invoice, however, it is mandatory as per GST invoice rules to have the following fields (only applicable field are to be filled):

Signature or digital signature of the supplier or his authorized representative
Whether the tax is payable on reverse charge basis
Address of delivery where the same is different from the place of supply
Place of supply along with the name of State, in case of a supply in the course of inter-State trade or commerce
Amount of tax charged in respect of taxable goods or services (Central tax, State tax, Integrated tax, union territory tax or cess)
Rate of tax (Central tax, State tax, Integrated tax, union territory tax or cess)
Taxable value of supply of goods or services or both, taking into account the discount or abatement, if any
Total value of supply of goods or services or both
Quantity in case of goods and unit or Unique Quantity Code there of
Description of goods or services
HSN code of goods or Accounting Code of Services
Name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is un-registered and where the value of taxable supply is fifty thousand rupees or more
Name, address and GSTIN or UIN, if registered, of the recipient
Date of its issue
A consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters like hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year
Name, address and GSTIN of the supplier

2. Bill of Supply

Name, address and GSTIN of the supplier
A consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters like hyphen or dash and slash symbolised as “-” and “/”respectively, and any combination thereof, unique for a financial year
Date of its issue
Name, address and GSTIN or UIN, if registered, of the recipient
HSN Code of goods or Accounting Code for Services
Description of goods or services or both
Value of supply of goods or services or both taking into account discount or abatement, if any
Signature or digital signature of the supplier or his authorized representative

Manner of issuing invoice

1. In case of supply of goods

The invoice shall be prepared in triplicate, in the following manner:

Original copy being marked as ORIGINAL FOR RECIPIENT
Duplicate copy being marked as DUPLICATE FOR TRANSPORTER
The triplicate copy being marked as TRIPLICATE FOR SUPPLIER

2. In case of supply of services

The GST invoice shall be prepared in duplicate in the following manner:

The original copy being marked as ORIGINAL FOR RECIPIENT
The duplicate copy being marked as DUPLICATE FOR SUPPLIER

The serial number of invoices issued during a tax period shall be furnished electronically through the Common Portal in Form GSTR-1.

Visit our website https://www.reachaccountant.com for more articles on GST.

Check GST Common portal for information https://cbec-gst.gov.in/

Kavitha