written by Khatabook | June 11, 2021

GST Invoice Details: Tax Invoice And Related Components In GST

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Table of Content


GST invoice refers to a receipt or bill of sent items or services offered to a customer by a service provider or seller. It specifically portrays the products or services along with the total due amount. A GST bill determines the price of the service or product before any SGST and CGST are levied on those items. GST invoices also display the amount of taxes deducted on each service or product individual purchases from the service provider or seller. This article will focus on the GST bill in India, invoicing in GST etc.

Did you know? As a GST-registered business, you might need to provide GST-compliant invoices to your customers for the sale of the services and goods

GST Registration and Invoice

Your GST-registered vendors will give you GST-compliant purchase invoices to you. The invoice can identify the involved parties in the transaction and provide a detailed description of the sold goods or supplied services. 

As mentioned in Section 2(66), Central Goods and Services Tax Act, 2017, understanding a tax invoice format can be easier concerning the guideline mentioned in section 31. Although it doesn’t mention the specifications of GST invoice formats, it states the entries or requirements of an official GST invoice.

Also Read: GST Of Travel Agents and Tour Operator Services - How is it Different?

The pattern of GST Billing 

An invoice can be referred to as an electronic document, whether electronic or manual. Here are some mandatory inclusions in GST bills:

  • An input distributor must have issued the invoice.
  • Inclusion of supplementary invoices.
  • Revisions of the invoice made in the past by the supplier. 

An invoice with GST must also include specifications such as 

  • Name, address and GSTIN of the supplier issuing the bill of supply. 
  • A unique serial number is limited to 16 digits.
  • Date of the issuance.
  • For registered recipients, the bill must include GSTIN, name and address of the customer.
  • A detailed description of the goods or services provided along with the HSN code.
  • Tax amount.
  • Amount of applicable discount on the taxes.
  • Invoice valuation.
  • The billing information and address.
  • The CGST, IGST, and SGST rates charged for the service or product must be mentioned. 
  • Shipping information and address.
  • Forward charge or reverse charge.
  • Signature of the authorized representative or the tax invoice issuer.

For your understanding, here is what a GST invoice may look like. Even though the layout may be different in the case of each supplier, the details should remain the same.

Tax Invoice

Date: 

Company Name:

GSTIN:

Address:

Billing Address:

Shipping Address:

Serial No.

Item Desc.

HSN

Qty.

Per Item Rate

Total

Discount

Taxable Amt

CGST(9%)

SGST (9%)

1.

X

 

5

Rs.40

Rs.200

Rs.200

Rs.18

Rs.18

2. 

Y

 

7

Rs.25

Rs.175

Rs.175

Rs.15.75

Rs.15.75

 

 

 

 

Total

Rs.375

 

Rs.375

Rs.33.75

Rs.33.75

Tax Invoice Value (In figures) 

Rs.442.50

Tax Amount Subject to Reverse Charges

 

Also Read: GST benefits - 7 Ways One Must Know How GST benefits the Economy

When Should a GST Invoice be Issued ?

In certain cases, issuing a GST invoice can be difficult, especially when the items are just shipped or the services have been rendered only recently. Therefore, the Government of India has provided a general outline of the suppliers' time limit. 

On Goods (Normal) 

Goods suppliers have to generate the invoice on or before the said date of removal of the products. As mentioned in Section 2(96) of the CGST Act of 2017, the removal of goods refers to -

  1. Goods/services dispatched for delivery to the customer.
  2. Goods collected by the customer or an authorized person on behalf of the customer or consumer. 

On Goods (Continuous Supply) 

Goods supplier needs to issue a GST invoice if the invoice concerns a customer who maintains an uninterrupted business order with the supplier and it should be issued on or before the account statement is generated or the payment is received. 

On Services

If the GST invoice of services is asked for, it should be issued within 30 days of providing the service mentioned.

On NBFC and Bank Services 

If the financial services are provided by financial institutions and banks, the deadline for invoice issuance will be 45 days from the date of product/service supply contrary to the 30 days deadline for other services. 

Copies of Invoicing GST for Supply of Goods 

For raising a goods supply GST invoice, the authoritative issuer will have to arrange 3 copies for the below-mentioned members of the transactions-

  • The recipient will receive the original copy.
  • The individuals responsible for the transportation of goods from the supplier to the consumer will receive a duplicate copy.
  • The supplier will receive the triplicate copy. 

Also Read: Everything You Need to Know About the Latest Amendment to CGST Act

GST Invoice Copies for Services Supply 

For supply services, no transports are required, eliminating the necessity of three invoice copies. 

Among the 2 copies -

  • The service recipient will receive the original document.
  • The supplier will keep the duplicate for internal use.

Revised GST Invoicing 

As per Rule 53 of CGST Act, 2017, there can be revised tax invoices raised against the already issued GST invoices. This can involve an upward or downward change in the cost of services or goods. It can involve changes in previously applied SGST/CGST/IGST rates to the bill. 

The specifications of a revised GST bill should be as follows:

  • It should be marked as “revised invoice” across the bill
  • Date of document issue.
  • Name, address and GSTIN of the supplier.
  • Nature of document.
  • Name, address and GSTIN/UIN of the registered recipient
  • Shipping address with details
  • A serial number and date of the GST invoice.
  • A unique serial number not exceeding 16 characters. 
  • Signature of the authorised representative or the issuer.

When is Tax Invoicing Not Necessary? 

Under certain circumstances, a supplier can avoid a GST issuance. They are-

  • The recipient is not registered in the transaction.
  • If the recipient does not feel the need to receive the invoice.

Satisfying these parameters ensures that the supplier can avoid any legal mandate regarding the issuance of a GST invoice. The supplier can, however, issue a consolidated tax invoice every day to keep track of all supplies.

Also Read: Importance and Functions of GST Network in India

Types of Invoices 

GST brings up a tax structure that is integrated into nature. This helps remove all styles of financial obstacles, allowing the GST to create commonplace countrywide markets

Bill of Supply 

It is similar to a GST invoice, except for the fact that a bill of supply does not display any tax amount since the service provider can’t charge GST to the customer.

Aggregate Invoice 

If the value of numerous invoices becomes less than ₹200 and the consumer is unregistered, the seller has the right to issue bulk or aggregate invoice for multiple invoices each day. 

Credit and Debit Note 

A seller can issue a debit note when the payable amount of the buyer to the service provider goes up. A seller issues a credit note when the value of the invoices decreases. 

Conclusion:

A GST invoice should be issued without fail by businesses that hold a GST registration. Other enterprises, however, do not need to issue these particular invoices. There can be several instances of getting a wrong GST invoice bill issued. As a solution, there is a provision for revising such tax invoices before. 
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FAQs

Q: What is the GST invoice benefit?

Ans:

The GST invoice benefit provides credit for the input tax paid on the purchase of goods and services, which can be offset with the tax to be paid on the supply of goods and services. It reduces the overall manufacturing costs so that the end customer has to pay less.

Q: What is the difference between an invoice and a GST invoice?

Ans:

Tax invoices include information about GST or goods and services tax, whereas regular invoices do not have any such information.

Q: What is a GST invoice?

Ans:

GST invoice evidences the supply of goods and services and is also essential for the recipient to avail of ITC or Input Tax Credit. GST invoice refers to a receipt or bill of sent items or services offered to a customer by a service provider or seller. It specifically portrays the products or services along with the total due amount.

Q: What is the difference between the due date and the invoice date?

Ans:

The invoice date refers to the date when the invoice was first created on the bill book. The due date refers to the date the payment is due on the invoice.

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The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.