If invoice is proper then only one can be able to take credit. In the Input tax credit Rule, one of the conditions for claiming the ITC is that one should have a proper supporting documents like tax invoice, debit note, supplementary invoice, etc.
We will deal on following:
- Types of invoice
- Contents in invoice
- No of copies
Types of invoice:
- If he is regular dealer- Tax Invoice
- If he is a composition dealer- Bill of supply
What is a tax invoice?
All the taxpayers registered under GST must issue a tax invoice for goods or services supplied by them.
The necessary fields in Tax invoice other than exporter is as follows:
- Name, address and GSTIN number of the seller
- Invoice Number and date
- If the recipient is registered
– Address and
– GSTIN number of the recipient,
- HSN code of goods or accounting code of services Description of goods or services
- Quantity and unit of goods
- Total value
- Taxable value (after deducting discounts and rebates)
- Rate and amount of GST
- Place of supply and the state for interstate sales
- Delivery address if it is different from the place of supply
- Whether the tax is payable on reverse charge mechanism
- and Signature of the authorized signatory
Details Required in case of Exporters:
In the case of goods or services that are meant for export, the following list of details are to be mentioned.
The invoice should also mention that “supply is meant for export on payment of IGST’ or ‘supply is meant for export under bind without payment of IGST”, depending on the case. The details to be mentioned are as given below:
- Name and address of the recipient.
- Name of the country of destination.
- Address of delivery.
- Number and date of application for the removal of goods for export in form ARE-1.
Note: Additional details such as the number of digits of the HSN code for goods or the accounting code for services may also have to be mentioned, if required.
No of Copies:
- If you are Supplier of goods – 3 Copies
- If you are the Supplier of the services – 2 copies
- If you are the exporter – 2 copies