The inception of GST in 2017 led to changes to the invoice format for several businesses in India. The GST invoice format and the associated rules are clearly stated in the GST Tax Invoice as well as the Credit and Debit Notes Rules.
We would discuss in details about the GST Invoice Format; the way invoice is issued as well as the time for issuing tax invoice.
Invoice Format
All GST issued invoice must have the following information:
- Name, address, and suppliers GSTIN;
- A maximum of 16 characters consecutive serial number. These numbers could contain numerals, alphabets, special characters hyphen, or any of such unique combinations for a financial year;
- Issued date;
- Registered recipients name, address, and GSTIN or UIN;
- Recipients name and address, delivery address, state, and code, for un-registered recipients with goods worth fifty thousand rupees or more;
- Accounting Code of services or HSN code of products;
- Goods or services description;
- Unique Quantity Code;
- Total value goods supplied or services or both;
- The taxable value of the goods provided or services or both in respect to discount or reduction if any;
- Tax rate (State tax, integrated tax, central tax, cess);
- The taxable amount concerning goods or services (State tax, integrated tax, central tax, cess);
- Location where supply was made as well as the State, in case of supply during inter-State trade or commerce;
- Delivery address if it’s different from the place of supply;
- Whether the tax can be paid on reverse charge basis; and
- Signature of the supplier or any other person authorized to sign on behalf of the supplier.
Main Differences between the New and Old GST Invoice Format
There is a specific feature that is common to all Invoice formats across the world. Some of these similarities include name, invoice date, suppliers and recipient address, quantity, goods description, total supply value, tax rate, the taxable value of supply, and final value.
The suppliers GSTIN is a compulsory requirement under GST as it should be written in the tax invoice alongside a unique serial number for each financial year. Therefore, businesses must take on an invoice numbering setup which considers the GST requirements.
Small-scale businesses can adopt a bill format for GST beginning with the fiscal year for example 2018-XXXX, in which the XXXX could be in numerals which will make it easy to track the number of invoices issued by the business in a financial year. The number must not necessarily start from 1. Hence, the business has the liberty to start the numbering from anywhere; all they should ensure is that it should be consecutive.
On the other hand, large businesses can make use of a serial numbering which consists of alphabets to help expand the available space for invoice numbers and to take care of accounting complexities.
GSTIN of the Recipient
The GST invoice format has special rules for recipients who are registered under GST. All businesses are required to have GSTIN which will enable them to claim input tax credit on purchases made. This is an excellent benefit as those without GSTIN won’t have this special privilege. So, if a recipient has GSTIN, then they would need to mention their names and address.
If a recipient doesn’t have GSTIN with a supply value of more than Rs.50, 000, then the resulting recipient details must be stated on the invoice:
- Name
- Recipient Address
- Delivery Address with State and its Code
Accounting Code or HSN Code of Services
HSN stands for Harmonized System of Nomenclature which is a standard and generally acceptable way of invoice format. All tax invoice and invoice of goods sold has to be classified under the appropriate HSN Code. If it involves services, the tax rate under GST will be classified under the Accounting Code of Services.
Business with a profit of fewer than Rs.1.5 crores is not required to include HSN code on the invoice.
Description, Value of Supply, Rate of Tax, Quantity and Taxable Value
When stating your HSN for goods or Accounting Code of Services, comprehensive details need to be mentioned in the invoice. Among the things to be mentioned include quantity, supply value, tax rate, and taxable value of supply. The taxable value of goods or service supplied is the supplied value when the discount has been considered. Finally, the place of supply and the name of State should be included.
Signature of Authorised Representative
In conclusion, the invoice needs to be duly signed by the supplier or authorized representative.
GST Export Invoice
If you need to issue an invoice for goods or services exported, the invoice needs to contain the following certification:
- supply intended for export on integrated tax payment; or
- amount intended for export under bond or letter of undertaking devoid of integrated tax payment.
Additionally, all invoices for exported goods need to have certain details like the recipient’s name and address of delivery and destination country.
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