When you are a GST registered dealer, you are required to provide GST invoice for the sales of your products and services, also known as GST bills to your customers.
The GST invoice mentions the parties involved in the transaction and a description of the products sold or services supplied.
It is known amongst the retailers that an incorrect invoice can obstruct the avail of GST credit.
And so, it is important to get the right GST invoice as a purchaser and issue a GST invoice as a supplier or seller.
Before we get into the know-how of the GST invoice, let us cover the basics of the GST and GST invoice.
Goods and Services Tax is one of the tax reforms in the history of India. Rolled out in July 2017, GST is one of the indirect taxes on the supply of products and services from the supplier to the consumer.
GST includes all taxes into one and subsumes all the indirect taxes. This is applicable for all the state-level and central-level taxes.
A seller issues a GST bill, or an invoice is issued for the recipient or the buyer of products and services.
The bill is issued by the seller or the supplier of the products and services.
This document includes the details of the parties involved in the transaction and details of all the products and services, along with the amount due for payment.
When you have to issue a GST invoice, make sure that you include the following is included in the GST invoice –
A GST invoice is issued to charge the tax and pass on the input tax credit.
As per the Section 31 of the CGST Act, 2017, a GST invoice must have the following mandatory fields –
The GST Act defines a time limit to issue a GST tax invoice, revised GST bill, credit note, and debate note. The invoice should be given before or after providing products/services in terms of taxable products/services.
The due dates to issue a GST invoice are the following –
Several variables make the GST invoice important for the smoother recording of profits.
A GST invoice will guarantee that citizens won’t miss their deadlines for filing returns. The GST receipt contains the record of all exchanges that were made during a month. When a taxpayer files their monthly returns, the GST invoice will fill in as a record to determine the measures of GST a taxpayer should pay and the due date.
Invoice under Reverse Charge Basis
If the Reverse Charge Basis is applicable under the GST, the recipient must raise an invoice on self. Invoice must be raised on a consolidated basis for all the transactions done during the day on which GST is levied under Reverse Charge.
The registered party should issue a payment voucher for supplies when making the payment to the supplier.
Issuing of Invoice Provided there is a Continuous Supply of Goods.
When there is a continuous supply of goods, successive statements of accounts or payments are included; thus, the invoice should be issued before or at the time of each transaction.
Invoice in case of Continuous Supply of Services
Invoice in case of Export of Goods or Services
When exporting goods/services, then the invoice should carry one of the following endorsements as to the case maybe –
Following are the details that shall be mentioned on an invoice –
Transportation of Goods without Invoice
Under the following cases, it is allowed for the consignor to issue a delivery challan in place of the invoice at the time of removal of goods –
The delivery challan should be made in triplicate for the consignee, the consignor, and the transporter.
A debit note is issued when the GST Invoice has been issued for a supply, and later on, it is found that the value or tax charged in that voice is less than what is actually chargeable.
A registered person who issues a debit note concerning the supply of goods/services can send the details of the debit note in return for the month during which the debit note has been issued.
A credit note is issued when the GST invoice is issued for a supply, and subsequently, it is found that the tax charged in the invoice is more than what is actually payable or when the recipient has returned the goods.
A registered retailer who issues a credit note is required to declare the details of the credit note in the GST return for the month during which the credit note has been issued. However, they have to ensure that they issue the note not later than September following the end of the financial year when the supply was made or the date of furnishing the relevant annual return, whichever of the two is earlier.
Yes, it is possible to revise invoices that were issued before GST. Under the GST regime, all dealers should apply for provisional registration before acquiring the permanent registration certificate.
Refer to the following image to understand the protocol of issuing a revised invoice.
This process applies to all the invoices between the date of issue of the registration certificate and the date of implementation of GST. As a dealer, the revised invoices must be issued against the invoices that are already issued. The dealer has to ensure that the revised invoice is issued within one month of the issue of the registration certificate.
There are several benefits to business that are likely to come on GST Invoice are different in every other respect.
GST merges most of the existing taxes into the single system of taxes, and it replaces the taxes that the Central and State governments previously levied.
The GST tax invoice has proven to be a better tax system because it is more efficient, effective, transparent, and increases competitiveness in the global market.