As a dealer registered under the Goods and Services Tax (GST) system, it is mandatory for you to furnish GST Invoices, commonly referred to as GST bills, to your clients.
What is GST invoicing?
An invoice, often called a GST bill, is a document that lists the goods delivered or services rendered, along with the corresponding amount that needs to be paid.
Who Shall Issue GST Invoice?
If you are a GST-registered business, you must issue GST-compliant invoices to your clients when selling goods and/or services.
Your GST-registered suppliers will provide you with GST-compliant purchase invoices.
Important Fields In GST Invoice:
Here are the mandatory fields that a GST Invoice should include:
Invoice number and date
Shipping and billing address
Customer's and taxpayer's GSTIN (if registered)
Place of supply
HSN code/SAC code
Item details, including description, quantity (number), unit (meter, kg, etc.), total value
Taxable value and any applicable discounts
Rate and amount of taxes, such as CGST, SGST, or IGST
Indication of whether GST is payable on a reverse charge basis
Signature of the supplier
Note: If the recipient is not registered and the invoice value is more than Rs. 50,000, then the invoice should also include:
Name and address of the recipient
State name and state code
Due Date For Providing GST Invoice:
The invoice for taxable services can be issued either before or after the provision of the service. However, it must be issued within a maximum period of 30 days from the service's provision.
For Banking and Financial Services Institutions (BFSIs), this period is extended to 45 days.
GST Tax Invoice Rules:
Invoice Serial Number Rules:
Invoice numbers must be sequential and unique for a financial year.
The serial number should not exceed 16 characters.
GST should be split into CGST, SGST, and IGST, not charged as a whole.
Invoice Signature Rules:
Invoices can be signed manually or digitally as per the IT Act, 2000.
The invoice must be signed by the supplier or their authorized representative.
When a GST-registered individual buys from an unregistered entity, they must issue a tax invoice.
For supplies exempt from GST, a bill of supply is issued instead of a tax invoice.
Tax & Process
When should I issue a GST invoice for goods or services?
• Normal supply: Issue the GST invoice on or before the removal of goods.
• Continuous supply: Provide the invoice before receiving payment or generating an account statement.
• General case: The invoice should be issued within 30 days of rendering services.
• Financial services: Banks and financial institutions have up to 45 days from the date of service supply to issue the invoice.
What are the different types of GST invoices besides a tax invoice?
Bill of Supply: Used when no GST is charged, typically for composition schemes or exempted goods/services.
Aggregate Invoice: Issued when multiple invoices, each under Rs. 200, are provided to an unregistered buyer.
Debit and Credit Note: Used to correct discrepancies in previously issued invoices or for product/service returns.
When is a supplementary invoice issued?
Supplementary invoices are issued when there are changes to the original invoice, such as quantity, value, or taxes, after the initial invoice has been issued.
How many copies of invoices should a supplier issue?
For goods: Three copies (Original, Duplicate, Triplicate).
For services: Two copies (Original, Duplicate).
Which sectors have special cases in GST invoicing?
Banking, goods, transport agencies, and passenger transport sectors have specific relaxations and rules for GST invoicing.