Hey, confused in Preparing the GST Invoice, let us understand how to issue a GST Invoice. Also refer our previous blogs about GST, Type of GST Taxes, Advantages and Disadvantages of GST, Exemption List, and Place of Supply etc.
Invoicing forms a crucial function when it comes to the purpose of execution of a transaction. On every sale/purchase, an invoice is issued by the supplier i.e. the person who is making the sale. GST invoice is required to be issued as it is a document evidencing supply of goods and services which become the basis for a charge of tax.
Before Introduction of GST, i.e., In VAT and EXCISE DUTY system, the different of types of Invoices to be issued by supplier are as follows: –
Now After Introduction of GST,
When a registered taxable person supplies taxable goods or services, a GST invoice is to be issued. It is based on the rules regarding the details required in an invoice. The serial number shall be furnished electronically in FORM GSTR 1 of invoices issued during a tax period. We will discuss How to fill Form GSTR1 i.e., return of outward supply later on. There are 2 types of documents which will be issued:
- GST Invoice
- Bill of supply
Highlights of GST Invoice
- Name, Address & GSTIN of supplier
- Consecutive Serial Number
- Date of issue (related to concept of Time of Supply)
- Name, Address & GSTIN (if registered) of recipient
- HSN/SAC code (as per eligibility on turnover basis)
- Description of Goods, Quantity & Taxable Value
- Rate & Amount of Tax – CGST, SGST, IGST
- Place of Supply (and Address of Delivery if it is different from POS)
- Reverse Charge
- Signature or Digital Signature
Hey, For more basics of GST refer our other blogs by clicking here: –
Special Provisions for Composition Taxpayers
The person who is registered as a composition taxpayer shall at the top of the bill of supply issued by him, mention the words- “not eligible to collect tax on supplies” because person registered as the composite taxpayer is not eligible to collect tax on the supplies from his buyer rather tax is paid by the composite taxpayer himself at the special rates decided for the composition dealers.
FORMAT OF GST INVOICE IS GIVEN HERE:
HOW MANY COPIES OF GST INVOICE ARE TO BE ISSUED?
When the goods are supplied, the supplier is required to issue 3 copies of the invoice – Original, Duplicate, and Triplicate. Whereas, in the case of supply of service, only 2 copies of the invoice are to be issued.
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 transporter in order to be presented as evidence as and when it is required and is also marked as the ‘Duplicate for the Transporter’. If the supplier has obtained an invoice reference number then transporter doesn’t need to carry the invoice.
Triplicate copy of GST Invoice: This copy is retained by the supplier for his own record.
Time Limit to issue GST Invoice
The GST law has defined the time limit for issue of GST tax invoices, debit note and credit note and revised bills.
GST tax invoice has to be issued by a registered dealer
For Goods –
On or before the time when goods are removed for supply (where supply involves movement);
On or before the time when delivery is received by the recipient (where no movement is involved).
For Service –
Invoice has to be issued within 30 days (45 days in case of banks and NBFCs) of supply of services.
List of facts on GST invoice
The Central Board of Excise and Customs has given a list of clarifications on invoicing relating to GST:
1) Taxpayers are free to design their own GST invoice format.
2) GST Law requires only that certain fields should be mentioned.
3) The time period prescribed for issuing an invoice for goods is anytime before its delivery and for services while for services it is within 30 days from the date of supply.
4) Small taxpayers, like small retailers and vendors doing a large number of small transactions for up to a value of Rs. 200 to end-customers are not required to issue an invoice for every such transaction. They can issue one consolidated invoice at the end of each day.
5) One copy of the invoice is required to be carried by the transporter in a normal transaction.
6) To keep compliance burden low for small taxpayers, GST law provides that taxpayers need not mention the HSN (Harmonized System of Nomenclature) Code with an annual turnover of up to Rs. 1.5 crore.
7) When the goods are transported for delivery but quantity to be supplied is not known at the time of removal, the good may be removed on delivery challan and invoice may be issued after delivery.
In case you are confused about GST, feel free to consult the GST experts at ItsLyf. Also contact for comprehensive assistance with GST Registration and GST Return Filing by email us at email@example.com
Geetika Goyal (Team Itslyf)