GST INVOICES

GST invoice or tax invoice in common language is a document which is issued by a GST Registered seller to a buyer. Entities which are registered under GST have to issue GST invoice for every taxable supply of goods and services supplied to purchaser. Invoice contains information indicating the products, quantities, agreed prices,GST Rate, HSN codes and other necessary points for products or services which the seller had provided to the buyer.

Issue Of GST Invoice

When a GST Registere business is selling some goods / services he needs to give GST Invoice to purchaser whether that he is registered or unregistered, however in some cases Bill of Supply to be given instead of GST Invoice which is explained on right.

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Issue Of Bill Of Supply

The Cases where a registered supplier needs to issue the bill of supply: Supply of Exempted/Nil-rated, Non-taxable/Non-GST goods or services Paying tax under he composition scheme.

[su_button url=”https://www.complypartner.com/wp-content/uploads/2018/01/Bill-of-Supply.xls” background=”#f37a08″ size=”4″]Bill Of Supply Format[/su_button]

Current TAX Invoice

In Current scenario there are different types of Tax Invoice are levied

  1. Invoice With Service Tax.
  2. Invoice with VAT.
  3. Invoice with Excise.
  4. Invoice with Other Taxes which GST has replaced.

Now there would be Majorly one Tax i.e. GST

Details In Invoice

A GST invoice should have these fields

  1. Invoice number and date.
  2. Customer name.
  3. Shipping and billing address.
  4. Customer and taxpayer’s GSTIN (if registered)**.
  5. Place of supply.
  6. HSN code/ SAC code( As Per turnover).
  7. Item details i.e. description, quantity (number), unit (meter, kg etc.), total value.
  8. Taxable value and discounts.
  9. Rate and amount of taxes i.e. CGST/ SGST/ IGST.
  10. Whether GST is payable on reverse charge basis.
  11. Signature of the supplier.

**If the recipient is not registered AND the value is more than Rs. 50,000 then the invoice should carry:

  • name and address of the recipient,
  • address of delivery,
  • state name and state code.

Time Period

As per GST Model law there is time limit for issue of GST tax invoices, debit note and credit note and revised bills.

For Service –

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

GST tax invoice has to be issued by a registered dealer

For Goods –

  1. On or before the time when goods are removed for supply (where supply involves movement); and
  2. On or before the time when delivery is received by the recipient (where no movement is involved).

GST Invoice Copies

In Case of Goods- 3 copies

In Case of Service- 2 copies

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 transporterin in order to be presented as evidence and it is known as ‘Duplicate for the Transporter’. However,If supplier has obtained an invoice reference number then in that case transporter doesn’t need to carry the invoice.

Triplicate copy of GST Invoice: This copy is retained by the supplier for his own record.

Case

Revised Invoice and Debit-Credit Notes

In Case any change is required in GST issue invoice which has been issued than it has to be changed by either of two ways:

  • Either be adjusted by issuing debit-credit note;
  • or by issuing revised invoice.

Inadmissible Input Tax Credit

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

  1. Section 74 – 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.
  2. Section 129 – Detention, seizure, and release of goods and conveyances in transit.
  3. Section 130 – Confiscation of goods or conveyances and levy of penalty.

Export

In Case of Export GST Invoice should have these words” Supply for export on payment of Integrated tax” or “supply for export under bond or letter of undertaking without payment of integrated tax” Along with these

  • Name and address of the recipient
  • Address of delivery
  • Name of the country of destination

Reverse Charge

When A person is paying tax as reverse charge on invoice than it has to be mentioned on invoice , registered person should issue a invoice of goods and services received by him from the supplier who is not liable to charge GST and he has to retain that single copy for GST return filing purpose.

Input Service Distributor

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

  1. Name, address, and GSTIN of the ISD.
  2. Consecutive serial number.
  3. Date of issue.
  4. Name, Address, and GSTIN of the recipient to whom the credit is distributed.
  5. Amount of the credit distributed.
  6. Signature or digital signature.

Other Point

What is Aggregate Invoice?

If the value of multiple invoices is less than ₹ 200 and the buyer is unregistered, the seller can issue an aggregate or bulk invoice for the multiple invoices on a daily basis.In case a Ice cream shops sells 100 ice cream per day each of INR 150 than he can raise aggregate invoice of INR 15000.

What is invoice date and due date?

Invoice date refers to the date when the invoice is created in books , while the due date is when the payment is due against the invoice, if payment terms is of 30 days than 30 days after invoice date.

Is it mandatory to maintain invoice serial number?

Yes, invoice serial number must be maintained strictly. In case it needs to be changed than it needs to be intimated to GST officer along with details.