Invoicing under GST means to post an input of tax entry of your business. Invoicing under GST plays a very important role in tax system for the business and government. The process of invoicing has been made simplified procedure, and keeping in mind, it is user friendly. This is a required field in GST implementation for better records. Invoicing is a legal document which is executed when there is supply of goods from one place to another. This is now done through GST invoice or invoice reference, not digitally generated portal. The format is a defined format in which GST invoice is written. It useful in further maintain records of supply of goods and writing in books of accounts.
What should be included in the GST invoice?
- Details of the supplier
- Details of the buyer
- Date of invoice
- HSN/ SAC code and product details
- Unique serial number of the invoice being executed.
- Description of goods
- Total value of goods and services
- Tax that is being applied on the goods or services after deduction of trade discount or any other.
- GST tax rate- CGST, SGST, IGST, UGST
- Tax amount and then the total amount which is to be paid
- Digital signature of tax payer and its representative.
Invoicing under GST
The process of invoicing under GST is-
- Tax invoice- Under the act of GST, a registered taxable person supplies good to another registered taxable person having GSTIN, he can generate invoice as per the procedure given under GST portal. The purchaser can avail the tax input within 90 days from date of purchase of goods. A tax invoice can be issued even at the time of interstate supply of goods and services. Input tax credits are available on all valid supply of goods and services.
- Bill of supply- Under GST, this bill of supply is usually used in B2C chain of supply of goods. One need to supply bill of supply at the time of supplying goods to the retailer or directly to the customer.
Under previous system of VAT, the same system for invoice was used, and it’s the same in GST with a little more advancement.
What is the time limit of issuance of tax invoice?
- In case of normal supply of goods, tax invoice can be generated on or before the time of supply of goods.
- When goods are supplied on sale on return or sale on approval, invoice has to be issued within 6 months of sales of return or when the goods are finally supplied.
- In case of reverse charge liability- on date of receipt of goods from the unregistered dealer.
- Continuous supply- In this case when the supply is being continuously made, and successive payments are involved then, invoice is issued on payment.
How many copies of invoices are to be issued under GST?
- Original invoice-The original copy of invoice is issued to the buyer of goods and services. This is the original one given to the recipient of goods. To avail the input tax credit it should be with the purchaser.
- Duplicate copy- It has to be issued as proof to show to the GST officer that there was movement of goods from one place to another. The transporter does not require duplicate copy of invoice if the supplier has obtained an invoice number from the GST portal.
- Triplicate copy- Every supplier under GST has to maintain a triplicate copy of invoice for further records and also get invoice number from GST portal for each supply of goods and services.
How to generate invoice reference number from GST portal?
Every supplier who supplies goods need to get a unique reference number from GST portal, it is created by uploading a copy of invoice to the portal. This invoice reference is useful when there is movement of goods from one place to another. This is valid only for 30 days and should be maintained for future uses. The requirement of invoice reference is necessary only when there is any supply in tax invoice, but in case of bill of supply this is not necessary.
How to revise invoice already generated or issued?
In case the invoice is already issued, it cannot be amended, but when there is a difference in value then, it can be settled through credit note or debit note.
- Credit note- issued to supplier when there is reduction in taxable amount on the original invoice.
- Debit note- issued by supplier of goods and services to increase the taxable amount on the original invoice.
Under GST issuing of invoice is very important, as to keep a track and maintain the supply of goods and services from the suppliers end and also for maintain the tax system under GST for both supplier and buyer. Invoice is not issued when there is just bill of supply given. This bill of supply is to be maintained and recorded by the supplier for proper tax maintenance.For more detail visit our website .