Detailed formats of a tax invoice

Updated on:  

08 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 invoicing 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.