invoicing under GST

Hello. In this post, we are discussing about Invoicing under GST.  In GST, tax invoices are essential. So in this post, we will discuss the following topics under invoicing:

  1. What is tax invoice?
  2. Who is required to prepare the tax invoice?
  3. What are the mandatory fields in a tax invoice?
  4. What is a bill of supply?
  5. Time limit for issue of invoice?
  6. Can invoice issued in earlier tax regime be revised?

What is tax invoice?

In simple terms, an invoice is a document that is issued by the seller to the buyer describing the value, quantity, mode of transport, discounts, mode of payment etc. of the purchased item. Under GST, tax invoice or bill of supply is required to be issued by the registered supplier in case of supply made by him.

Under GST, the seller (or supplier) has to mandatorily issue the tax invoice in case of supplies made. On the basis of this document, the recipient will be able to take the credit for the taxes paid.

Who is required to prepare the tax invoice?

Every person registered under GST who is supplying any goods or services is required to issue the tax invoice to the recipient.

What are the mandatory fields in a tax invoice?

A tax invoice issued should have the below components:

      1. Name, address, and Goods and Service Tax Identification number (GSTIN) of the supplier.
      2. Name, address and Goods and Service Tax Identification number (GSTIN) of the recipient, if registered.
      3. Invoice date and number
      4. Description of goods or services
      5. Value of supply of goods or services
      6. Rate and amount of tax(CGST, SGST, IGST)
      7. Place of supply
      8. HSN/SAC code
      9. Signature of the supplier

Where tax is payable on reverse charge basis or where supplies are received from unregistered dealers, the registered person is required to issue an invoice in respect of the goods or services received by him. A payment voucher is also required to be issued by him at the time of making payment to the supplier. If the recipient is not registered under GST AND the value of supplies is more than Rs. 50000, following additional details, are also required:

      1. Name and address of the recipient
      2. Address of delivery
      3. Name of the State with its code

What is a bill of supply?

A bill of supply is similar to an invoice with the only difference that no tax is mentioned in the bill of supply because it is not charged by the supplier. There are 2 cases where the bill of supply needs to be issued:

      1. Registered person is supplying exempted goods or services
      2. Where a registered person has opted for composition scheme.

Time limit for issue of invoice :

In case of goods :

      1. Where movement of goods is involved: before removal of goods
      2. Where no movement of goods is involved: Anytime before delivery
      3. In case of continuous supply of goods: On or before date of issuance of account statement or receipt of payment

In case of services :

      • General category: Within 30 days from the date of supply of service
      • In case of banking and financial institution: Within 45 days of date of supply of service

Can invoice issued in earlier tax regime be revised?

Yes.  A revised invoice can be issued under GST within one month from the date of registration, the taxable person may issue a revised tax invoice for supplies from the effective date of registration till the date of issuance of the registration certificate.

That is it for this post. if you have any more question, ask them in the comment section below.

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