Invoice is a tool which acts as evidence for goods and services or both being sold through business to its customer. These documents are used through businesses for collecting payments from buyers for underlying sale transactions. The GST Bill was enacted on September 8, 2016, and it became effective in July 2017, 10 months later. So far, there has been a big influence on the country. Excel table of contents for GST invoice Produce invoices that comply with GST on your computer.
Did you Know? MS Excel is a popular tool for creating GST-compliant invoices used by small businesses.
Laws and Rules Regarding GST
The GST law requires registered taxpayers to produce GST invoices whenever they make a sale. The GST invoice enables the seller to collect payments and allows him to claim input tax credits underneath the new taxes. As soon as the Act goes into force, GST regulations will become operative. They refer to the IGST/CGST/SGST statute while distributing goods or services. The indirect taxes such as entertainment tax, octroi and local tax was levied together by both state and centre. And it led to a lot of overlapping of taxes levied which was removed with the introduction of the GST Law.
Also Read: Impact Of GST On Car Prices And Other Automobiles In India
Creating Invoices for Goods and Services Tax Compliance
If you own a GST-registered business, you must produce a GST(Goods Services Tax) invoice whenever goods or services are supplied. A Bill of Supply must be issued by companies that have registered underneath the composition system. Depending on the characteristics of your supply, there are three different sorts of invoices:
- Intra-State Billing: Only when the supply originates from the state in which the business is registered is it necessary. CGST & SGST are also included in this invoice.
- Inter-State Billing: Only if the supplies are shared by two different states is it necessary. IGST is gathered on this invoice.
- Invoice Export: Once the supply is imported into the nation is it necessary.
GST Invoice Formatting Guidelines
The administration stipulates that the registrant must submit the proforma invoice mentioned in Sec 31 and include the following details:
- The supplier's name, residence & GSTIN.
- the name, residence, & GSTIN of the client.
- Delivery address
- Also include the state's name and state code as well.
- Product or service description
- The date it was published.
- Quantity in the case of the goods.
- The Goods and services tax rate apply to specific services or items.
- The payment was due upon the delivery of services or goods.
- The overall cost of products or services supplied.
- The Harmonized System of Nomenclature (HSN) Code or code services for accounting.
- The location of supplies, as well as the State’s name.
- Reverse charge basis for tax payment.
- a representative's electronic signature from the authorised supplier.
Sections in GST Invoice Template
There are five sections in the GST Invoices template:
- The firm title, postcode, logo, & GSTIN are all included in the header.
- The client's name, residence, GSTIN, account number, & date are entered in the customer information area.
- The Product & Tax Details Section contains information on the product's descriptions, HSE/SAC code, amount, quantities, reductions, and SGST, CGST, and IGST prices.
- The entire quantity of the bill which the customer should pay is provided in the billing summary tab.
- The chargeable amount, sale price amount, and finalized invoice sum are automatically determined, together with the SGST, CGST, and IGST amounts.
- Section for Signatures: This part includes the receiver's and accountant's signatures and other remarks.
Also Read: Place of Supply of Goods under GST
How can I create GST invoices in Excel?
The following are the steps to create a GST invoice in Excel:
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Launch Microsoft Excel.
Open Microsoft Excel, go to the 'File' tab, and choose 'New' from the dropdown menu. Then, double-click ‘Blank Wordbook’ to open a new Excel sheet.
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Remove the vertical line.
To remove the gridlines for invoice preparation, go to the 'View' tab and uncheck 'Gridlines' in the 'Show/Hide' column.
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Include the company logo and heading.
Once you have the blank spreadsheet, select the 'Insert' option and insert your company logo. Make the document's header 'Tax Invoice.'
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Include Company Information
Following the placement of the corporate logo and document header, insert your firm information, such as company name, address, zip code, and GSTIN.
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Enter Customer Information
The next item in the invoice is the 'Bill to' section, which contains your customer's information. Just below your company information, write 'Bill to' and insert customer information such as the customer's firm name, address, zip code, and GSTIN/UIN.
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Include any additional information
Add any other data, such as the order id (PO), invoice date, invoice number, and invoice due date. Because it uses the current day's date, you can use the formula =TODAY () function in the invoice date area for convenience. Assume your payment conditions are Net 20 or 20 days from the bill date.
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Enter Product and Service Specifications
Then, provide a section with goods/service details, price (per SKU), quantity, discount% if available, and applicable tax. You can utilize formulas to make your work easier and use this invoice as a template for future invoices.
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Provide Banking Information
Provide your bank information, company PAN, and a space for digital signatures near the conclusion of the invoice.
Also Read: Effect of GST on the Indian Economy
Things To Consider While Creating Invoices In Excel
When it comes to calculating practically anything, Excel is unrivalled. Excel formulas make computations like tax amount, total taxable items, and so on quite simple. These tools may allow medium and small-business owners to make bespoke invoices, but they are not the only options.
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Extra effort and time
Business owners may design personalized invoices using Excel. However, these need additional time and effort. For example, anytime you add new goods or services, you must update the same in each invoice template.
Furthermore, issuing invoices by email necessitates additional work. This takes up significant time for business owners and reduces their productivity.
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Increased Probability of Data Loss
Assume you have all of your client information in an excel spreadsheet. Looking for specific clients to whom you want to send bills now requires a massive search of the excel database. Furthermore, there is a risk of information being mistakenly deleted or your machine malfunctioning, causing you to lose valuable data.
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Inability to generate invoices on the fly
When you generate invoice templates in Excel, they are saved in your system. These do not allow you to create and submit invoices on the road, such as while travelling to a business meeting or working on a job site.
Advantages of GST Invoice Excel Templates
The advantage of using these Excel invoice templates is that you don't have to start from zero when creating your GST invoice. There are resources available online for getting free Excel templates for GST invoices.
They are classified into four types:
- Standard Format,
- Tax Breakup,
- Tax,
- IGST Format.
The GST Invoice Format in Excel goes a step further; as a tool, a precise formula is incorporated into Excel to determine the discount granted and tax break-up. Columns are insufficient; you can easily alter any of the templates.
Conclusion:
An "invoice" or "tax invoice" under the GST regime refers to the tax invoice referred to in Section 31 of the CGST Act, 2017. This clause requires that an invoice or a bill of supply be issued for every supply of goods or services. It is not required simply for the person supplying the products or services to submit an invoice.
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