What Is GST Invoicing?

Being a dealer under the Goods and Services Tax (GST) regime, you are required to provide GST invoices (commonly known as GST bills) to your customers.

The document that you receive and that mentions the goods supplied or services rendered and the amount that has to be paid is called an invoice or a GST bill in the case of GST compliance.

Who Shall Issue GST Invoice?

GST-registered through the GST invoicing company for businesses and companies selling goods and/or services should issue GST-compliant invoices to their clients.

Your suppliers registered in the GST will issue you purchase invoices compliant with the GST.

Key Fields Of GST Invoice:

Being the top GST invoicing agency in India, as a Services Plus, we already mentioned the required fields that a GST invoice must contain are:

• Invoice number and date
• Customer's name
• Shipping and billing address
• GSTIN of customer and taxpayer (if registered)
• Place of supply
• HSN code/SAC code
• Description of items, quantity(number), unit (meter, kg, etc.), and total value
• Tax-exempt value and any applicable discounts
• Tax rate and amount, as CGST, SGST, or IGST
• Reverse charge applicability indicator
• Signature of the supplier

Note: In addition to the above details, if the recipient is not a registered person and the invoice value is likely to exceed Rs. 50,000, the invoice should also be updated with:

• Recipient name and address
• Delivery address
• State name and state code

Due Date to Issue GST Invoice:

The GST invoicing agency in India  should mention the due date to issue GST invoices to their clients to avoid the penalties; below  are the important due dates:

• The invoice in case of taxable services may be raised either before or after the provision of the service. Nonetheless, it shall be issued no later than 30 days after the service is supplied.
• This time is extended to 45 days for Banking and Financial Services Institutions (BFSIs).

GST Tax Invoice Rules:

As per the GST invoicing online in India, some rules and regulations according to the Income Tax Act rules are:

• Invoice Serial Number Rules:
  
  1. Invoice numbers should be in sequential order and unique for that financial year.
  2. Do not make the serial number longer than 16 characters.
  3. GST is not charged as a whole but should be divided into CGST, SGST, and IGST.
  
  
• The Invoice Signature Rules:
  
  1. And, as per the IT Act, 2000, invoices can be signed either manually or digitally to apply GST invoicing online in India.
  2.Invoice should be signed by the supplier or his authorized representative.
  
  
• Payment Rules:
  
  1.When a GST-registered person purchases from an unregistered entity, a tax invoice should be issued.
  2. In the case of supplies not liable to GST, a bill of supply is issued in place of the tax invoice.

Advantages Of Complying With GST Invoicing Agency In India:

• Complying With the Law & Avoiding Penalties

      1.Helps keep you in compliance with GST laws and avoid fines and penalties for non-compliance.

       2. Being the best GST invoicing agency, as a Services Plus, we make two     copies, which helps companies to keep accurate records of their finances for audits and tax assessments, and one copy is with our agency for further records.

• Little things to keep it simple - smooth ITC claims

  
  1.As per GST invoicing online in India, without proper GST invoices, buyers are unable to claim input tax credit, which escalates the actual tax burden.
  
  2.Get rid of the cascading effect of taxation and ensure seamless tax adjustments.
  
  

• Transparency in Transactions

  
  1.Moreover, they clearly outline all taxes, prices, and discounts, creating transparency and trust between buyers and sellers.
  
  2. Clearly segregates CGST, SGST, and IGST for accurate tax reporting.
  
  

• Better Business Operations: The Trained Processes

  
  1.Enables businesses to monitor sales, inventory, and cash flow easily.
  
  2.Standardization of invoices makes the accounting and reconciliation process easier.
  
  

• Legal Shield & Evidence of Transaction

  1. A GST invoice acts as proof or generates proof in case of a sale or service, so it protects the two parties if, in some case, a complaint arises.
  
  2. Being the best GST invoicing company, Services Plus, we also provide a standardized format that guarantees all required information is captured.

       1. A GST invoice must specify the following components of tax:

• CGST (Central Goods and Services Tax)—charged by the Central Government on intrastate transactions.
• SGST (state goods and services tax)—charged by the state government for intrastate transactions
• IGST (Integrated Goods and Services Tax)—imposed by the Central Government on the transaction between states.
  
  2. Taxable Value & Discounts
  
  
• It is charged on money to be paid on goods or services after any applicable discounts have been considered while applying the GST invoicing online in India.
• The total amount of the invoice includes taxable value plus GST.
  
  3. Requirements for HSN Code & SAC Code
  
  
• HSN code (Harmonized System of Nomenclature)–Classifying goods
• Menu SAC (Services Accounting Code)—It is used for classification of services.
  
  4. Reverse Charge Mechanism:

As per the GST invoicing agency in India, only a few companies are liable to provide services for the reverse charge mechanism; we, as a Services Plus provide every detail and every important service related to the reverse charge mechanism.

• 8% rate has been assigned to different economic units.
• Where one person sells to another and the seller is not GST registered, the buyer has to pay GST under the reverse charge.
• Invoice should indicate whether GST is payable under reverse charge.
  
  5. Time Limit for Issuing GST Invoice and for the GST Invoicing agency in India:
  
  
• On Supplies of Goods: There is a requirement as to when an invoice to be issued, which is at or before the time of supply.
• For services: An invoice shall be issued within a period of 30 days from the date of provision of service (for the BFSI sector, this duration is extended to 45 days).
  
  6. Special Cases in Tax Invoices :
  If the value of the invoice is more than ₹50,000 for an unregistered recipient, it is required to be inclusive of:
  
  
• Recipient(s) name & address
• Delivery address
• State name & state code

Documents Required For GST Invoicing

The Goods and Service Tax (GST) regime requires the usage of several types of documents for compliance, tax calculation, and record-keeping. As per the GST invoicing agency in India, there is a detailed list of each and every required document with their description and what is required.

1. GST Invoice (Tax Invoice)

When a registered supplier sells taxable goods or services, he issues a GST invoice online in India. This document serves as a basis for the buyer to claim ITC (Input Tax Credit).

2. Bill of Supply:

• Supplies exempted from GST
• Composition Scheme dealers (pay tax at a fixed rate but cannot charge GST to customers).

3. Debit Note

• The supplier adds to an invoice its taxable value.
• The GST charged is higher due to an increase by the supplier.

4. Credit Note

• The supplier will lower the taxable value of an invoice.
• The supplier lowers the GST charged.
• Goods are returned.
• The discount is applied post-sale.

5. Payment Voucher

 GST issued under Reverse Charge Mechanism (RCM)

6. Receipt Voucher

When an advance payment is received before supply of goods/services, it is issued.

7. Refund Voucher

Issued when an advance payment is returned since the supply did not take place.

8. Delivery Challan

• Penalty for carrying goods without a tax invoice, e.g.:
• Supply of liquid gas (quantity not known at time of dispatch)
• Job work transactions
• Branch transfers
• Commercial samples or goods sent for exhibition or testing

9. E-Way Bill

It is issued when a consignment is carrying goods worth more than ₹50,000. This document is required to comply with GST rules on goods movement.

10. Self-Invoice

To be issued when goods/services are procured from an unregistered supplier (Reverse Charge Mechanism).

PROCEDURE FOR THE GST INVOICING:

STEP 1:  Identify if it’s an invoice

First things first: As per the GST invoicing company, Services Plus, before we create an invoice, we make sure you know which type of invoice is best for you based on the transaction:

Type of Invoice Purpose:

• Tax Invoice Issued for Taxable Goods/Services
• Bill of Supply for exempted goods/services or Composition Scheme dealers
• Debit Note Issued when taxable value or GST is increased post issuance of invoice
• Credit Note Issued when taxable value or GST is reduced, or goods are returned
• Receipt Voucher When advance is received
• Refund Voucher Generated when an advance payment is refunded
• Payment Voucher Applicable upon Reverse Charge Mechanism (RCM)
• Delivery Challan Null issued when goods are taken without the invoice

Step 2: Collect Necessary Information

Here are the things, being the best GST invoicing agency in India, we must have ready before creating a GST invoice with the following details:

• Supplier Details:
• Name & address
• GSTIN (Goods and Services Tax Identification Number)
• Contact information
• Recipient Details:
• Name & address
• GSTIN (if registered)
• Shipping and billing address
• Invoice Details:
• Unique invoice number (max 16 characters, sequential)
• Date of issue
• Goods/Service Details:
• S.N. Code (Goods) or S.A.C. Code (Services)
• Description of goods/services
• Numerous for quantity and unit (kg, meter, etc.)
• Rate per unit
• Total value before tax
• Tax Computation:
• Applicable GST rate
• CGST, SGST and IGST Details
• Discounts (if applicable)
• Total amount of invoice (including GST)
• Reverse Charge Indication:

GST Payable on Reverse Charge Basis (if applicable)

• Signature:

Manual or digital signature of the supplier

Step 3: Create the GST Bill

Through our GST invoicing agency, we generate GST invoices using:

• Accounting software (Tally, QuickBooks, Zoho Books, etc.)
•  GST e-Invoicing Portal (for companies with annual revenue above ₹5 crore)
• Excel or Word templates
• Manual invoicing (for small businesses).

Step 4:  Send the Invoice before the Due Date.

• Tax Invoice is to be issued — For Goods: at or before the time of the supply.
• For Services: Raise the invoice within 30 days (45 days for BFSI sector).

Step 5: Share the Invoice with the Buyer

•  Provide the invoicing in print or digital format.
• Make sure it contains any required fields.
• When the invoice is for more than ₹50,000 or for an unregistered buyer:
• Recipient’s name & address
• Delivery address
• State name & code

Step 6: Compliance Preparation:

•  GST Law – Copies of the issued invoices must be retained for a minimum period of 6 years.
• Ensure a suitable invoice number sequence for reference.
• Timely file GST return (GSTR-1, GSTR-3B, etc.) based on the data in the invoice.

Step 7: E-way Bill Generation (If Applicable)

• If the value of an invoice is greater than ₹ 50,000, prepare an E-Way Bill for transit.

- Include:

• Invoice number & date
• Transporter details
• Vehicle number

Step 8: File GST Returns Using Invoice Data

• Use invoice details while filing GSTR-1 (sales return).
•  Cross-check with GSTR-2A (purchase return) for ITC claims.