GST Act along with GST Rules has defined the invoicing rules and formats. Under this category, we will be covering all aspects of invoicing under GST.
What is an invoice?
An invoice or a bill is a list of goods sent or services provided, along with the amount due for payment.
A person registered under GST must issue GST compliant invoices.
- Name, address and GSTIN of the supplier
- Date of issue
- Name, address and GSTINof the recipient (if registered)
- HSN code
- Description of the goods/services
- Quantity of goods
- Value(after discount)
- Rate and amount of GST
A typical GST invoice looks like-
A bill of supply is similar to a tax invoice except that bill of supply does not contain any tax amount as the seller cannot charge GST to the buyer.
A bill of supply is issued in cases where tax cannot be charged-
- Registered person is selling exempted goods/services,
- Registered person has opted for composition scheme
- Unregistered person
What is an aggregate invoice?
If the value of invoice is less than Rs. 200 and the buyer is unregistered, the seller can issue an aggregate invoice or a consolidated invoice for such multiple invoices on a daily basis.
For 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.
A debit note is issued by seller when the amount payable by buyer to seller increases:
- Tax invoice has a lower taxable value than the amount that should have been charged
- Tax invoice has a lower tax value than the amount that should have been charged
A credit note is issued by seller when the value of invoice decreases:
- Tax invoice has a higher taxable value than the amount that should have been charged
- Tax invoice has a higher tax value than the amount that should have been charged
- Buyer refunds the goods to the supplier
- Services are found to be deficient
The GST Act has defined the time limit for issue of GST tax invoices, revised bills, debit notes and credit note.
Following are the due dates for issuing an invoice to customers:
Under GST, all the taxable dealers will have to apply for provisional registration and carry out all the formalities post which they will get the permanent registration certificate.
For all the invoices issued between the period –
- Date of implementation of GST
- Date of issue of Registration certificate
The dealers will have to issue a revised invoice against the invoice already issued between the said period. The revised invoice will have to be issued within one month from the date of issue of the registration certificate.
Various Invoices & Supporting Documents
The different types of invoices and supporting documents under GST are-
- Sales invoices
- Purchase invoices
- Bill of supply
- Credit notes
- Debit notes
- Advance receipts
- Refund vouchers
- Delivery challans (for supply on approval, supply of liquid gas, job work and other)
Copies of Invoices to be issued
In some cases, like banking, passenger transport the government has provided relaxations on the format in which invoice is to be issued by a supplier.
FAQs on Invoice
What’s the difference between invoice date and due date?
Invoice date refers to the date when the invoice is created on the billbook, while the due date is when the payment is due against the invoice.
How to issue an invoice under reverse charge?
You do not have to issue an different invoice if GST is payable under reverse charge. But you must mention on the invoice that tax is paid on reverse charge.
Is it mandatory to maintain invoice serial number?
Yes, invoice serial number must be maintained strictly.
For example, if invoice is being issued with serial number as INV001, the same format must be maintained. You may change the format by providing a written intimating the GST department officer along with reasons for the same.
What details are required to be mentioned in GSTR-1 for documents issued?
You are required to mention the nature of documents issued, number of documents prepared, cancelled and net issued along with serial number of each for the following:
- Invoices for outward supply
- Invoices for inward supply from unregistered person
- Revised Invoice
- Debit Note
- Credit Note
- Receipt voucher
- Payment Voucher
- Refund voucher
- Delivery Challan for job work
- Delivery Challan for supply on approval
- Delivery Challan in case of liquid gas
- Delivery Challan in cases other than by way
Can I sign my invoice through DSC?
Yes, you may digitally sign at our software through DSC and authentic your invoice. In case you do not have a DSC, you will also be provided an option to sign through Aadhaar number.