GST Invoice is required to be issued because this document is evidence of the supply of goods and services which become the basis for a charge of tax. Invoicing forms an important step in the procedure when it comes to the purpose of execution of a transaction. On every sale or purchase, an invoice is issued by the supplier. He or she is the person who is making the sale.

Current Invoice Regime

In the current tax regime, there are different types of invoices which are issued:GST Invoice

GST Invoice Regime

  • He or she has to issue a GST invoice when a registered taxable person supplies taxable products or services,
  • The serial number should be furnished digitally in FORM GSTR 1 of invoices issued during a tax period.
  • Thereafter, the following 2 documents are issued:
    • GST Invoice
    • Bill of supply

GST Invoice Particulars

  • Name, Address and GSTIN of supplier
  • Date of issue related to Time of Supply
  • Consecutive Serial Number
  • HSN or SAC code (as per eligibility on the turnover basis)
  • Description of Goods, Taxable Value and Quantity
  • GSTIN (if registered), Name and Address of recipient
  • Rate and Amount of Tax (SGST, CGST, IGST)
  • if it is different from POS, Place of Supply and Address of Delivery
  • Reverse Charge
  • The signature or Digital Signature

Format of GST Invoice

GST Invoice Sample

Bill of Supply

  • Generally, the GST invoice is issued to charge the tax from the recipient and also pass on the credit.
  • However in GST there are some instances where the recipient is not a registered individual or where the supplier is not permitted to charge any type of tax and hence a GST invoice can’t be issued.
  • Instead, another document is issued which is called Bill of Supply

Situations where a registered supplier needs to issue the bill of supply:

  • Supply of Exempted or Nil-rated, Non-taxable or Non-GST products or services
  • Paying tax under the composition scheme

 

Particulars

  • Name, Address and GSTIN of supplier
  • Date of issue
  • Consecutive Serial Number
  • GSTIN (if registered), Name and Address of recipient
  • HSN or SAC code
  • Description of Goods, Quantity and Value
  • Signature or Digital Signature

 

Special Provisions for Composition Taxpayers

  • An individual who is registered as a composition taxpayer shall at the top of the bill of supply issued by him and mention these words “not eligible to collect tax on supplies”.
  • Person registered as the composite taxpayer is not allowed to collect tax on the supplies from his buyer
  • The composite taxpayer himself pays the tax at a special rate laid down for the composite dealers.

Number of GST Invoice copies issued

GST Invoice Copies

  • In case of supply of goods, the supplier shall issue 3 copies of the invoice
    • Original
    • Duplicate, and
    • Triplicate.
  • Whereas, in the case of supply of service, he shall issue only 2 copies of the invoice.

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 GST’s duplicate copy of invoice is issued to the carrier of the products i.e. the transporter for the evidence as and when it is required. It is also known as the ‘Duplicate for the Transporter’.
  • Then transporter doesn’t need to carry the invoice if the supplier has obtained an invoice reference number

Triplicate copy of GST Invoice

This copy is retained by the supplier for his own record.

Time Limit to issue GST Invoice

The GST Model law has defined the time limit for issue of GST tax invoices,  debit note and credit note and revised bills.

A registered dealer will issue a GST tax invoice 

For Goods

The dealer will issue the tax invoice:

  • Supply involves movement:- On or before the time when supply involves removal of products
  • Supply does not involve movement:- On or before the time when the recipient takes the delivery

For Services

Invoice has to be issued within 30 days of supply of services (45 days in case of banks and NBFCs).

Special cases of GST invoice

Export

  • The GST invoice shall clearly mention the words in the case of export of goods or services :
    • supply for export on payment of Integrated tax
    • supply for export under letter or bond of undertaking without payment of integrated tax
  • It shall include the following details in addition to those already listed above:
    • Name and address of the recipient
    • Address of delivery
    • Name of the country of destination

Reverse Charge

  • In the case of reverse charge mechanism, the recipient of the supply is liable to pay tax.
  • Every person who is paying tax on reverse charge basis has to specify this fact in his tax invoice that is being issued.
  • A registered person who is liable to pay tax under this rule has to mandatorily issue an invoice in respect of products or services both received by him from the supplier who is not registered in the law of the GST.
  • There will be a one copy of such invoice which he will retain for return filing purpose.

Input Service Distributor

An invoice or credit note issued by an Input Service Distributor (ISD) should have the following details:-

  • Name, address, and GSTIN of the ISD
  • Consecutive serial number
  • Date of issue
  • Name, Address, and GSTIN of the recipient to whom the credit is distributed
  • Amount of the credit distributed
  • Signature or digital signature

Revised Invoice and Debit-Credit Notes

  • Supplier issues Invoice to the recipient whose accounts invoice in his books of accounts. In such sales, the tax is paid on the basis of invoice issued by the supplier.
  • However, if a Tax Invoice is already issued by the supplier and if such tax invoice amount is needed to be changed later, it can:
    • Adjusted by issuing debit-credit note; or
    • Issuing a revised invoice

Inadmissible Input Tax Credit

Any invoice issued for tax payable should prominently contain the words “INPUT TAX CREDIT NOT ADMISSIBLE” in following cases:

  • According to Section 74, it mentions determination of tax not paid/ short paid/ erroneously refunded/ input tax credit wrongly availed/utilized by reason of fraud/any wilful misstatement or suppression of facts.
  • According to section 129 provisions for seizure, detention, and release of products and conveyances in transit is given.
  • According to Section 130, it provides for confiscation of products or conveyances and levy of penalty.

List of facts on GST invoice

The Central Board of Excise and Customs has provided list of clarifications on invoicing in GST:

  • Tax payers should only mention specific fields under the GST Law.
  • The time duration prescribed for issuing an invoice for products is any time before its delivery and for services while for services it is within thirty days from the date of supply.
  • Taxpayers have freedom to design their own GST invoice format.
  • Small taxpayers like small retailers and vendors who do large number of small transactions up to a value of INR 200 shall not issue an invoice for every such transaction.
  • Tax payers can issue one consolidated invoice at the end of each day.
  • GST law provides that taxpayers need not mention the HSN Code with an annual turnover of up to INR 1.5 crore to keep compliance burden low for small taxpayers.
  • The transporter shall carry single copy of the invoice in a normal transaction.
  • Keeping in view the huge number of transactions in the insurance, banking and passenger transport sector, taxpayers need not to mention the serial number in their invoices and the address of the customer or clients.
  • If VAT invoice is issued for non-taxable supplies then there is no requirement to issue separate Bill of supply.
  • When the products 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.

Conclusion

You can get complete assistance with GST Registration and its Return Filing. You can also use our GST software for doing end-to-end GST compliance and connect with our experts to solve your problems.