GST Invoice

Home Blog GST Invoice

GST Invoice

Introduction 

A GST invoice/bill is like a receipt which is issued on the purchase of taxable goods and services. It is issued by the registered seller under the GST Law to the customer. The invoice mentions the details regarding the goods and services and it also mentions the amount due for those goods and services. The GST invoice is issued by a seller with the help of a valid GSTIN (GST identification number). It is based on the tax rate that prevails under the GST law. 

Further, the GST invoice is varied based on the type of registered person who is supplying goods and services. For this reason, there are various types of GST invoice. They are: 

1.A Tax Invoice 

It is the most basic and regular invoice issued by the seller on the sale of taxable goods or services to the buyer. Such invoice is subject to include the following things: 

  • All the relevant Information regarding the supplier and the buyer
  • The price at which goods and services were rendered. 
  • Name of the Product
  • Number of unit of goods & services that were sold
  • Description of the goods and services sold or rendered 
  • Terms of supply on which the sale was made 
  • Date of supply
  • Discount shall be mentioned if given 

2.Receipt Voucher 

When a buyer makes the payment in advance for the purchase of goods and services then in such a case the seller is bound to issue a receipt voucher. 

3.Bill of Supply 

Bill of supply comes into picture when the sale of goods is done under the ambit of composition scheme as per the CGST act, 2017 or when the sale of exemption goods takes place. 

4.Invoice-cum-bill-of-supply

As per Notification No. 45/2017 – Central Tax dated 13th October 2017 in case if a registered person is supplying taxable and also exempted goods/ services to an unregistered person, then the registered seller can issue a single “invoice-cum-bill of supply” for all such supplies.

5.Refund Voucher 

In case the seller is unable to provide goods and services to the buyer for the advance granted by him/her, then the seller shall issue a refund voucher to the buyer. 

6.Consolidated Tax Invoice 

When a sale is made to an unregistered person under GST, then in such cases, a consolidated tax invoice is issued by the seller. Here, the value of goods or services supplied is less than Rs 200.

7.Invoice issued for continuous supply 

When there is continuous or regular supply of goods or services by suppliers to customers, then this type of GST invoice is issued along with account statements or at the time of receiving payments. 

8.Invoice issued on termination of supply services 

It is one of the special types of GST invoice that is issued when a contract already made for the supply of services between a supplier and a buyer is terminated for any reason. Additionally, an invoice is issued for a period the contract was active as well.

9.Aggregate Invoice 

If there are multiple invoices that need to be issued to the unregistered buyer of goods and services, and all the invoices are of amounts less than 200, the seller can issue an aggregate or bulk invoice for the multiple invoices on a daily basis.

10.Reverse Charge Invoice 

A taxpayer who is liable to pay under the reverse charge mechanism has to issue an invoice for goods or services or both received by him. Further, the receiver shall also mention the fact that the tax was paid under such a mechanism. With these, they will also have to issue a payment voucher while making payment to the supplier. 

11.Debit and Credit Notes 

A debit note is issued by the seller when the amount payable by the buyer to the seller increases. 
A credit note is issued by the seller when the value of invoice decreases.

How many copies of invoices should be issued?

In case of goods, 3 copies of invoices shall be issued.
In case of services, 2 copies of invoices shall be issued. 

                    

What is the time limit to issue invoices? 

                   

Can you revise invoices issued before GST?

The answer to this question is, yes, which means you can revise the invoices issued before GST. Under the GST law, all the dealers are requested to apply for provisional registration before getting the permanent registration certificate.
This applies to all the invoices issued between the date of implementation of GST and the date of the issue of the dealer’s registration certificate. 
As a dealer, it is the duty of the dealer to issue a revised invoice against the invoices that have already been issued. The time limit to issue the revised invoice is 1 month from the date of issue of the registration certificate.

Frequently asked questions on Invoice 

1.Is the condition to maintain a serial number for invoices compulsory?
Yes, the condition to maintain a serial number for invoices is compulsory. The taxpayer is allowed to alter the format of invoices by providing a written statement to the GST department prior and with reasons for the same.

2.How can individuals issue invoices under the Reverse Charge Mechanism (RCM)?
If the GST is payable under the reverse charge mechanism, then the user is expected to additionally mention that the tax is paid on a reverse charge, on the GST invoice.

3.Can a user digitally sign his/her invoice?
To encourage digital India, a user can easily sign his/her invoice with the help of Digital Signature Certificate (DSC).

4.How do you differentiate between a due date and an invoice date?
The due date is referred to as when the payment is due on the invoice, while the invoice date refers to the date when the invoice is created on the bill-book. 

Conclusion 

In simpler words, a GST invoice is nothing but a bill of goods or services provided by the supplier under the GST regime. However, these invoices form a crucial part of buying and selling and shall always be made in adherence to rules, regulations and provisions of GST Law. 


Author : Riya

Date     : 21-Jul-2022

Frequently asked questions on Invoice

Yes, the condition to maintain a serial number for invoices is compulsory. The taxpayer is allowed to alter the format of invoices by providing a written statement to the GST department prior and with reasons for the same.

If the GST is payable under the reverse charge mechanism, then the user is expected to additionally mention that the tax is paid on a reverse charge, on the GST invoice.

To encourage digital India, a user can easily sign his/her invoice with the help of Digital Signature Certificate (DSC).

The due date is referred to as when the payment is due on the invoice, while the invoice date refers to the date when the invoice is created on the bill-book.


GET HELP