Detailed formats of a tax invoice

By Annapoorna

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Updated on: Apr 20th, 2022

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3 min read

A tax invoice broadly contains the description of goods sold, their quantity, taxes charged, total taxable value, and other particulars. It is a piece of primary evidence that the recipient of goods can claim an input tax credit.

Benefits of having formats for tax invoice

Having a proper invoicing system is very helpful for a business in many ways. The availability of various invoice formats has made it possible for a business to customise its invoice and thus make it more reliable and trustworthy. Some of the other benefits are-

  • Customise the invoice to advertise its brand and thus help in business promotion.
  • A business can make necessary changes to suit its business and industry requirements.

Various formats for a tax invoice

There are various formats of a tax invoice. ClearOne provides various invoice formats. A taxpayer can choose a format that best suits its business requirements. Some of the formats are shown below:

tax invoice format
tax invoice format
tax invoice format
tax invoice format
tax invoice format

Ideal contents of a tax invoice

A valid tax invoice follows the same basic invoice format. An ideal tax invoice usually contains the following information:

  • Business name and contact details
  • GST and PAN number of the supplier and registered buyer
  • Customers name and contact details
  • Should contain the words ‘invoice’
  • Unique  tax invoice number
  • Invoice date
  • Date of supply of goods
  • Place of supply
  • Description of goods or services provided
  • GST rate, HSN code, and tax amount
  • The gross value of goods sold
  • Discounts
  • Taxable amount
  • Signature of the supplier

Choosing the right format for a tax invoice

The main objective of a tax invoice for a recipient is to avail input tax credit. From a supplier’s point of view, they serve as proof of goods sold and provide data for financial reporting purposes. Thus, a business can choose the right format based on its business needs. Simpler and good looking formats help to enhance business finance in a better way.

Fields of a tax invoice that can be customised

Below fields of a tax invoice can be customised:

  • Customer name and contact details
  • Payment terms
  • Product description
  • Prices and units
  • Printing sales invoice with an authorised signature

By saving this information or creating a master list using an invoicing tool, one can avoid potential mistakes while typing out addresses and descriptions for each new invoice. In addition, it improves efficiency.

About the Author

I preach the words, “Learning never exhausts the mind.” An aspiring CA and a passionate content writer having 4+ years of hands-on experience in deciphering jargon in Indian GST, Income Tax, off late also into the much larger Indian finance ecosystem, I love curating content in various forms to the interest of tax professionals, and enterprises, both big and small. While not writing, you can catch me singing Shāstriya Sangeetha and tuning my violin ;). Read more

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Quick Summary

A tax invoice includes goods details, taxes, and contact information. Different formats available suit business needs. Benefits include brand promotion and customization. Fields like payment terms and product description can be customized to enhance efficiency.

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