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Invoicing

GST Invoice

Invoicing is a crucial activity for any business, irrespective of type and size. Businesses should be careful while generating invoices as every transaction enters into books of accounts through this activity. Further, after introducing the Goods and Services Tax (GST), registered businesses must issue GST invoices, also known as GST bills.

A registered person must issue a tax invoice before, or at the time of removal of goods for supply to the recipient. For supplying services, GST invoices can be issued before, at, or even after the time of supply. Further, e-Invoicing system is also being implemented in a phased manner that requires certain more mandatory fields.

Information required in a GST invoice

Rule 46 of the CGST Rules deals with the contents of invoice. The tax invoice issued must clearly mention information under the following 16 headings:

  • Name, address and GSTIN of the supplier
  • Tax invoice number up to 16 characters (it must be generated consecutively and each tax invoice will have a unique number for that financial year)
  • Date of issue
  • If the buyer (recipient) is registered then the name, address and GSTIN of the recipient
  • If the recipient is not registered and the value is more than Rs.50,000* then the invoice should carry:
    1. Name and address of the recipient
    2. Address of delivery
    3. State name and state code 
  • HSN code of goods or service accounting code for services
  • Description of the goods/services
  • Quantity of goods (number) and unit in UQC (metre, kg etc.)
  • Total value of supply of goods/services
  • Taxable value of supply after adjusting any discount
  • Applicable rate of GST (Rates of CGST, SGST, IGST, UTGST and Cess clearly mentioned)
  • Amount of tax (With breakup of amounts of CGST, SGST, IGST, UTGST and Cess)
  • Place of supply and name of destination state for inter-state sales
  • Delivery address if it is different from the place of supply
  • Whether GST is payable on reverse charge basis
  • Signature of the supplier or his authorised representative

Endorsement on invoice under GST for exports

Certain invoices under GST must need endorsement or mention on the invoice. The cases include the exports of goods and services and supply to SEZ units or developers for authorised operations in the following conditions:

  • With tax payment
  • Without tax payment under bond or LUT

The text for endorsement is of two types depending on the condition given above:

  • Supply meant for export/supply to SEZ unit or SEZ developer for authorised operations on payment of integrated tax
  • Supply meant for export/supply to SEZ unit or SEZ developer for authorised operations under bond or letter of undertaking without payment of integrated tax

Reasons for not issuing a tax invoice

A registered person may not issue a tax invoice when:

  • The recipient is not a registered person and
  • The recipient does not require such invoice

Raising invoice copies

The GST Law requires businesses to keep copies of all of their invoices. The details of this are furnished below. Invoices for Supply of Goods The invoice must be prepared in triplicate. They will be clearly marked as:

  • Original Copy for the use of the recipient
  • Duplicate Copy for the use the transporter
  • Triplicate Copy for the use of the supplier

Invoices for supply of services, the invoice must be prepared in duplicate and clearly marked as:

  • Original Copy for the use of the recipient
  • Duplicate Copy for the use the supplier