Invoicing Rules Under GST

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Every registered person under GST is required to Issue GST Invoices/bill to his clients in bellow specified manner.

1. What is a GST Invoice?

An invoice or a bill is a document which lists out the goods Sold or services provided, along with the amount due for payment and other details as specified bellow.

2. Who should issue GST Invoice?

Every registered person under GST need to provide invoices (as per rules) to his clients for sale of good and/or services.

3. What are the mandatory fields a GST Invoice should have?

A GST Invoice must have the following mandatory fields so that recipient of good/service can claim ITC with the help of invoice:

  1. Invoice number and date
  2. Customer name
  3. Customer and taxpayer’s GSTIN (if registered)#
  4. Shipping and billing address
  5. Place of supply
  6. Item details i.e. description, quantity (number), unit (meter, kg etc.), total value
  7. HSN code/ SAC code
  8. Taxable value and discounts
  9. Rate and amount of taxes i.e. CGST/ SGST/ IGST
  10. Whether GST is payable on a reverse charge basis
  11. Signature of the supplier

#If the recipient is not registered AND the value is more than Rs. 50,000 then the invoice should carry:

  1. name and address of the recipient,
  2. address of delivery,
  3. state name and state code

4. Time Limit to issue invoices?

The GST Act has defined time limit to issue GST tax invoices, revised bills, debit notes, and credit note.

Following are the due dates for issuing an invoice to customers:

  1. Goods (Normally): On or before removal/delivery
  2. Goods (Continuous Supply): On or before the issue of account statement or receipt of payment.
  3. Service (Generally): Within 30days of supply of service
  4. Services (Banks & NBFCs): Within 30days of supply of service

5. Other types of invoices?

A. Bill of Supply

A bill of supply is similar to a GST invoice the only difference is a bill of supply does not contain any tax amount/details as the seller cannot charge GST to the buyer.
A bill of supply can be issued in the following casesharged:
  • The registered person is selling exempted goods/services,
  • Registered person has opted for composition scheme

Invoice-cum-bill of supply

As per Notification No. 45/2017 – Central Tax dated 13th October 2017

If a registered person is supplying taxable as well as exempted goods/ services to an unregistered person, then he can issue a single “invoice-cum-bill of supply” for all such supplies.

B. Aggregate Invoice

If the value of multiple invoices is less than Rs. 200 (each invoice) and the buyer are unregistered, the seller can issue an aggregate or bulk invoice for the multiple invoices on a daily basis.

Example, you may have issued 3 invoices in a day of Rs.80, Rs.90 and Rs. 120. In such a case, you can issue a single invoice, totaling to Rs290, to be called an aggregate invoice.

C. Debit and credit note

debit note is issued by the seller when the amount payable by the buyer to seller increases:

  1. Tax invoice has a lower taxable value than the amount that should have been charged
  2. Tax invoice has a lower tax value than the amount that should have been charged

credit note is issued by the seller when the value of the invoice decreases:

  1. Tax invoice has a higher taxable value than the amount that should have been charged
  2. Tax invoice has a higher tax value than the amount that should have been charged
  3. Buyer refunds the goods to the supplier
  4. Services are found to be deficient

7. Can we revise invoices issued before GST?

Yes, Every registered person must issue a revised invoice against the invoices already issued between Date of implementation of GST to date of issue of registration certificate with in one month from date of registration. 

8. How many copies of Invoices should be issued?

  • For goods– 3 copies
    • 1st from Buyer
    • 2nd for transporter
    • 3rd for himself
  • For services– 2 copies
    • 1st from Buyer
    • 2nd for himself

Disclaimer: Due care has been taken to draft this write-up and is intended to express the Authors understanding and to start an academic discussion on the subject discussed in above write-up. it should not be considered as professional advice. Readers are advised to refer to relevant provisions of law before applying any of the above-mentioned views. The author accepts no responsibility whatsoever and will not be liable for any losses, claims or damages which may arise because of the content of this write-up.

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