INVOICING UNDER GST
A GST Invoice is one of the most important documents in any transactions as it evidences the supply of goods and services and also mentions all the relevant details regarding such supplies. Moreover, Invoice Under GST is a major Indicator of the time of Supply.
WHO SHOULD ISSUE INVOICE?
If you are a GST registered business, you need to provide GST-Compliance invoices to your clients for sale of good and/or services. Your GST registered vendors will provide GST-compliance purchase invoices to you.
MANNER OF ISSUING INVOICE:
In case of Supply of GOODS, the GST Invoice should issue in TRIPLICATE.
- The Original Copy being marked as Original for Recipient
- The duplicate Copy being marked as Duplicate for Transporter.
- The Triplicate Copy being marked as Triplicate for Supplier.
In case of Supply of SERVICES, the GST Invoice should issue in DUPLICATE.
- The Original Copy being marked as Original for Recipient.
- The Duplicate Copy being marked as Duplicate for Supplier.
MANDATORY FIELDS IN GST INVOICE:
A Tax Invoice is generally issued to charge the tax and pass on the input tax credit. A GST Invoice must have the following mandatory fields:
- Invoice number and date
- Customer name
- Shipping and billing address
- Customer and taxpayer’s GSTIN (if registered)**
- Place of supply
- HSN code/ SAC code
- Item details i.e. description, quantity (number), unit (meter, kg etc.), total value
- Taxable value and discounts
- Rate and amount of taxes i.e. CGST/ SGST/ IGST
- Whether GST is payable on reverse charge basis
- Signature of the supplier
**If the recipient is not registered and the value is more than Rs. 50,000 then the invoice should carry:
- Name and Address of the recipient,
- Address of delivery,
- State Name and State code
It has also been provided in the Invoice Rules that at the time Receipt of Advances, the Invoice should contain all the particulars as mentioned above plus-
- If the rate of tax is not determinable, the tax rate may be 18%.
- If the nature of Supply is not determinable, the same may be treated as Inter-state Supply.
INVOICE UNDER SPECIAL CIRCUMSTANCES:
- Invoice under Reverse Charge: In case of Reverse Charge, the recipient shall raise invoice on self. Also Invoice shall be raised on consolidated basis for all the Payments made during the day on reverse charge. The Registered Person shall also issue Payment voucher in respect of such supplies at the time of making payment to the Supplier.
- Invoice In case of Export of Goods: In case of Export of Goods or Supplies, the Invoice shall carry one of the following endorsements as –
- Supply meant for export on Payment of Integrated GST.
- Supply meant for export under bond or Letter of undertaking without Payment of Integrated GST.
The Following Details Should also be mentioned on such Invoice-
- Name Of the Recipient
- Address of Delivery
- Name of the country of Destination
- Transportation of Goods without Invoice: Following are the cases, where it is permissible for the consignor to issue delivery challan in lieu of Invoice at the time of removal of Goods:-
- Supply of Liquid Gas where the quantity at the time of removal from the place of supplier is not known.
- Transportation of Goods for Job Work.
- Transportation of Goods for reason other than by way supply.
The delivery Challan shall also be prepared in triplicate i.e for the consignee, Transporter and the Consignor.
TYPES OF INVOICES:
- Bill of Supply:
A bill of supply is similar to a GST invoice except for that bill of supply does not contain any tax amount as the seller cannot charge GST to the buyer.
A bill of supply is issued in cases where tax cannot be charged:
- Registered person is selling exempted goods/services,
- Registered person has opted for composition scheme
- Invoice-cum-bill of supply:
If a registered person is supplying taxable as well as exempted goods/ services to an unregistered person, then he can issue a single “invoice-cum-bill of supply” for all such supplies.
- Aggregate Invoice:
If the value of multiple invoices is less than Rs. 200 and the buyer are unregistered, the seller can issue an aggregate or bulk invoice for the multiple invoices on a daily basis.
For example, you may have issued 3 invoices in a day of Rs.80, Rs.90 and Rs. 120. In such a case, you can issue a single invoice, totaling to Rs290, to be called an aggregate invoice.
GST Debit/Credit Note:
A Credit Note in GST, is a document issued by the supplier in the following cases:
- Supplies are returned or found to be deficient by the recipient – When goods supplied are returned by the recipient or goods/services supplied are found to be deficient by the recipient, the supplier should issue a Credit Note. The credit note serves the purpose of reducing the value of the original supply.
- Decrease in taxable value – When a supplier requires to decrease the taxable value of a supply, credit note can be issue to the recipient.
- Decrease in GST charged in invoice – When a supplier requires to decrease the rate or value of GST charged in an invoice, he/she has to issue a credit note to the recipient.
A debit note in GST is a document issued by the supplier in the following cases:
- Increase in Taxable Value -When a supplier requires to increase the taxable value of a supply, he/she has to issue debit note to the recipient.
- Increase in GST charged in invoice – When a supplier requires to increase the rate or value of GST charged in an invoice, he/she has to issue debit note to the recipient.
Apart from mentioning the above contents, the revised Invoice under GST, the word “Revised Invoice” should be indicated prominently.
Thus, Invoice may be generated electronically or manually be hand and if the invoice is not issued as per the above mentioned rules or issued but recorded in the books of accounts, a penalty of Rs. 25000 can be levied