GST Invoice Details : Essential Information

A registered person must issue a tax invoice before, or at the time of removal of goods for supply to the recipient. For supplying services, GST invoices can be issued before, at, or even after the time of supply. Further, e-Invoicing system is also being implemented in a phased manner that requires certain more mandatory fields.

Know all about Invoice under GST

Information Required in a GST Invoice

Rule 46 of the CGST Rules deals with the contents of invoice. The tax invoice issued must clearly mention information under the following 16 headings:

1. Name, address and GSTIN of the supplier
2. Tax invoice number up to 16 characters (it must be generated consecutively and each tax invoice will have a unique number for that financial year) 
3. Date of issue
4. If the buyer (recipient) is registered then the name, address and GSTIN of the recipient 
5. 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** 
6. HSN code of goods or service accounting code for services***
7. Description of the goods/services
8. Quantity of goods (number) and unit in UQC (metre, kg etc.)
9. Total value of supply of goods/services
10. Taxable value of supply after adjusting any discount
11. Applicable rate of GST (Rates of CGST, SGST, IGST, UTGST and Cess clearly mentioned)
12. Amount of tax (With breakup of amounts of CGST, SGST, IGST, UTGST and Cess)
13. Place of supply and name of destination state for inter-state sales
14. Delivery address if it is different from the place of supply
15. Whether GST is payable on reverse charge basis
16. Signature of the supplier or his authorised representative

* Also, to be declared if the value is less than Rs.50,000 only where the recipient requests for the details.

** If the case is an export to an unregistered recipient of value up to Rs.50,000, then the name of the country of destination is required.

*** HSN Code reporting is as follows for businesses, since 1st April 2021:

• Turnover above Rs.5 crore must use 6-digit HSN code for all invoices
• Turnover less than or equal to Rs.5 crore must use 4-digit HSN code for all the B2B invoices. However, this reporting is optional for B2C invoices.

Previously, up to 31st March 2021, the reporting was as follows for businesses

• Turnover less than 1.5 crores- HSN code is not required to be mentioned
• Turnover between 1.5 -5 crores can use 2-digit HSN code
• Turnover above 5 crores must use 4-digit HSN code  

Endorsement on Invoice under GST for exports

Certain invoices under GST must need endorsement or mention on the invoice. The cases include the exports of goods and services and supply to SEZ units or developers for authorised operations in the following conditions:

• With tax payment
• Without tax payment under bond or LUT

The text for endorsement is of two types depending on the condition given above:

• Supply meant for export/supply to SEZ unit or SEZ developer for authorised operations on payment of integrated tax
• Supply meant for export/supply to SEZ unit or SEZ developer for authorised operations under bond or letter of undertaking without payment of integrated tax

Format of GST Invoice

A typical tax invoice, also an e-invoice, with all the 16 mandatory fields under GST will look like this:

** GST Council may notify about:

• the number of digits of HSN code for goods or the accounting code for services and the various classes of registered persons should be mentioned
• the class of registered persons who will not be required to mention the codes

Reasons for Not Issuing a Tax Invoice

A registered person may not issue a tax invoice when:

• the recipient is not a registered person and 
• the recipient does not require such invoice

Raising Copies of Invoice

The GST Law requires businesses to keep copies of all of their invoices. The details of this are furnished below. Invoices for Supply of Goods The invoice must be prepared in triplicate. They will be clearly marked as:

• Original Copy for the use of the recipient
• Duplicate Copy for the use the transporter
• Triplicate Copy for the use of the supplier

Invoices for Supply of Services The invoice must be prepared in duplicate and clearly marked as:

• Original Copy for the use of the recipient
• Duplicate Copy for the use the supplier

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Here’s a sneak peak into the ClearOne product offered by ClearTax:

For more understanding of invoicing, read a host of articles on ClearTax:

• Invoice matching in GST
• Tax invoices in special cases under GST
• All you need to know about Bill of supply for exempt supplies
• Delivery challans under GST