With the complex structure and rules that are set by GST in India, there could be confusion about the GST invoice format, what it should contain, and how it should be applied. Without a clear understanding of invoices, staying GST compliant could be confusing.
Answers to 10 frequently asked questions regarding the GST business invoice.
What is an invoice?
An invoice is a document that’s issued by a supplier or seller to the customer as proof of sale. It contains all the details of the sale or supply of goods or services. Under GST, it is mandatory to issue an invoice. It is not just necessary to produce an invoice only when a sale happens. It is compulsory for an individual who is buying services or goods from any unregistered person to issue a tax invoice as well as payment receipt.
What are the various types of invoices under GST?
Invoice-cum-bill of supply: This invoice/bill is supplied when a registered individual is supplying goods or services which are taxable as well as those that are exempted for an unregistered individual, then the supplier issue a single invoice-com-bill of supply for such supplies.
Bill of Supply: It is issued when tax cannot be charged. Like, The supply of exempted services or goods by a registered individual or if a registered individual has opted composition scheme.
Aggregate Invoice: This Invoice is issued from a registered supplier to an unregistered consumer for the value of the Invoice of sale is lesser than Rs. 200. The supplier can issue multiple invoices daily in such cases.
What is credit note and debit note
Credit Note and Debit Note:
Credit Note: The seller/supplier issues a credit note if the amount payable by the consumer decreases for the goods and services that were charged to GST.
Debit Note: The supplier/seller issues a debit note if the amount payable by the consumer increases for the goods and services that were charged to GST.
How many invoice copies should be issued for goods and services?
Under the GST regime, the serial number of invoices should be obtained and furnished in the GSTR1 form through the GST portal. You should prepare and issue triple invoices for goods. For services, two invoices should be issued.
- The original or the first copy of the Invoice should be marked and issued as “Original for Recipient.”
- The second copy or duplicate copy of the Invoice should be marked and issued as “Duplicate for Transporter.”
- The third copy or triplicate copy of the Invoice should be marked and issued as “Triplicate for Supplier.”
- The first copy or original copy should be marked and issued as “Original for Recipient.”
- The second or the duplicate copy should be marked and issued as “Duplicate for Supplier.”
What is the time limit of issuing an invoice:
For the supply of goods, in general, the time limit for issuing invoices is on or before the date of delivery or removal of goods. For usual services, the time limit for issuing an invoice is within 30 days of supply. For Banks or NBFCs services, the time limit is 45 days. For Continuous supply of goods, the time limit is on or before the date of the issue of payment.
What are the necessary fields that should be mentioned in a GST invoice?
A GST compliant invoice should have some necessary details of a supplier like a Name, Address, and GSTIN. There should be a unique tax invoice number mentioned on the Invoice. The nature of the Invoice should be specified, like whether it is a supplementary invoice, revised Invoice, tax invoice, or the date of issue. The Invoice should also mention the name, address, and GSTIN of the registered buyer. If the buyer is unregistered and the value of product or services is more than Rs. Fifty thousand then the Invoice should include the name and address of the buyer, address of where the product is being delivered, and the state name and its code. There should be a mention of the HSN code of Goods. The Invoice should contain the quantity and value of goods or services provided. It should also mention the rate and amount tax with a clear break up of CGST, SGST, IGST, UGST, and cess. It should specify the place of supply. There should be a statement issued clarifying if the GST is to be paid on a reverse charge basis.
What should be the GST invoice format for the Export of Goods or Services?
There are some necessary details that should be mentioned in this type of Invoice. It should mention the name and address of the buyer: delivery address and destination country. An export invoice needs a declaration that GST has been paid for exports. Details of transport agency should be mentioned like the name and address of the transporter, the number of the vehicle, the total weight of the consignment, location of origin, details of the destination, and GSTIN of the individual liable for the tax. A declaration of supply meant for export on payment of IGST should be mentioned on Pre-paid IGST. For exports without IGST payment, a declaration of supply meant for export with bond or letter of undertaking without the payment of IGST should be mentioned.
What should be the invoice format for the registered individual with the same state code and pan as the ISD?
For such invoices, the details that should be mentioned are Name, GSTIN, and address of the individual. Date of issue. Supplier’s GSTIN. Invoice number of the original Invoice. Name, GSTIN, and address of the input service distributor. Validation or authentication by the registered individual or if there is an authorized representative. And lastly, Invoice should contain the rate of tax, taxable value, and the amount of credit that is to be transferred.
Can an invoice issued before GST revised?
Under the GST regime, all the suppliers should apply for provisional registration before getting the permanent certificate of registration.
How to authenticate/Personalise Invoice?
A personalized invoice is much more than the proof of sale or purchase. It creates more authenticity and trust with the customer. The best way to personalize your Invoice is through the logo of your company on your Invoice and a signature. There are different software that is available online, which you can download and use to create and issue a personalized invoice. A “transparent logo” in png format will be one of the best formats to add the logo to your Invoice. To add a signature, you should create and save a digital signature on your device, and you can add that signature to all your invoices. It takes less than two minutes to add your logo and signature, but it creates a lasting impression and also authenticates your Invoice.
Remaining GST complaint with a proper GST invoice format need not be difficult because there is useful software available online that can be of great help. GST in India has evolved since its launch with several changes it has been through to accommodate ease in filing taxes and to help taxpayers remain GST compliant.