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Since the implementation of the Goods and Services Tax (GST), every GST-registered business must share a GST invoice with their customers/clients. A GST invoice can be defined as a bill that enlists services and goods transferred from the seller to the buyer and the amount of money the latter owes to the former.

Who Should Issue GST Invoice

GST invoices are issued by GST-registered businesses. The sellers must maintain a particular GST invoice format while sending GST-complaint bills to the clients. Vendors registered with the GST Council with their own GST Identification Number (GSTIN) are required to provide the bills of purchase in the GST invoice format.

GST Invoice Format

As per the format prescribed under the GST Act, 2017, a GST invoice must include the following fields:

  • Date of issuance of the invoice

  • Invoice number

  • Name of customer

  • Billing address

  • Shipping address

  • GSTIN of the business and the customer (in case the customer is registered)

  • Place of supply

  • HSN (Harmonised System of Nomenclature) Code

  • Quantity, description, and any other details about the product/service

  • Discount applicable

  • Net taxable value

  • Applicable GST rates

  • Total GST charged under the different headers: CGST, SGST, UTGST, and IGST

  • Signature of the supplier

GST Invoice Rules

Businesses are required to follow certain rules and guidelines related to the serial number, signature, and payments while issuing a GST invoice:

Serial Number Rules for GST Invoice

  • The invoice number must be an alphanumeric combination.

  • GST invoices must be numbered in a sequential manner.

  • The serial number of a GST invoice must be 16 digits or less.

Signature Rules for Invoicing Under GST

  • The GST invoice must be signed either by hand or digitally (as per the regulations laid down by the Information Technology Act, 2000).

  • The invoice must be signed by either the supplier themselves or by any of their representatives.

GST Invoice Payment Rules

  • If a registered entity makes a payment to an unregistered entity, the former has to issue a GST invoice.

  • In case a registered entity receives a product/service that is exempt from the GST Act, they need to issue a bill of supplies instead of a tax invoice.

When to Issue a GST Invoice

There are certain rules regarding the timing of the issuance of GST invoices as per the Goods and Services Act, 2017. The rules are different for goods and services.

For Goods

  • For a one-time supply of goods, the GST invoice should be issued on or before the date of delivery.

  • In cases of continuous supply of goods, the GST invoice must be issued on or before the day when the account statement is issued.

For Services

  • GST invoice for services must be issued within 30 days of the supply.

  • In cases of services associated with banks or NBFCs, the GST invoice has to be issued within 45 days of supply.

Types of Invoicing Under GST

There are three types of GST invoices prescribed under the GST Act, 2017:

  • Bill of Supply: A bill of supply is issued when the supplied goods/services are exempt from GST or the supplier has opted for the composition scheme. Whenever a Bill of Supply is issued, the supplier is not liable to pay any GST.

  • Aggregate Invoice: The seller is permitted to issue an aggregate invoice or a bulk invoice in case the buyer is unregistered and the total value of several invoices is not more than a total of two hundred rupees.

  • Debit/Credit Note: If the value of the invoice changes later (after the supply of goods/services), the seller issues a debit note (if the invoice value increases) or a credit note (if the invoice value decreases).

Can GST Invoices be Revised

There can be several reasons owing to which a seller might end up issuing a GST invoice with incorrect data. Therefore, the GST council has provided a provision for revising an invoice that has been issued. A revised GST invoice must have “Revised Invoice” mentioned on it.

How Many Copies of a GST Invoice Should a Dealer Issue

A seller must issue three copies of the invoice in case of the supply of goods - the original copy to be received by the buyer, a duplicate copy to the transporter of goods, and a third copy to be kept by the seller.

In the case of services, only two copies of the invoice are to be issued - one each for the buyer and the seller.

GST Invoicing Under Special Case

In the case of certain special services such as banking and passenger transportation, certain relaxations are provided by the government in terms of GST invoicing and/or following the GST invoice format. It must be noted that you must generate your GST invoice format in an Excel sheet while following the rules to ensure the smooth functioning of your business operations.

 

Lates GST Invoice News

For B2B companies, the government has mandated the use of electronic invoices. 

From April 1, 2021, all companies registered under GST will be required to use e-invoice for B2B transactions, according to the Finance Secretary. Previously, E-invoicing was made available to the registered taxpayers with a turnover of more than INR 100 Crores in any previous financial year from 2017-18 onwards, starting on January 1, 2021.

The main advantage of e-invoicing is that it allows for a completely integrated flow from one company's ERP system to another, resulting in less invoice mismatches during reconciliation.

- March 5, 2021

FAQs on GST Invoice

✔️Is the GST number mandatory on the invoice?

Yes, the GST number of the supplier is mandatory on the invoice.

✔️Is a hand-written bill allowed in GST?

Yes, a hand-written invoice is allowed as per the GST rules.

✔️Can I digitally sign my invoice through DSC?

Yes, you are allowed to sign the invoice either by hand or digitally using a Digital Signature Certificate (DSC).

✔️How does the invoice date differ from the due date?

The invoice date is the date on which the invoice is issued, while the due date is the last date by which you have to pay the bill to the seller.

✔️How to issue an invoice under reverse charge?

While issuing a GST invoice under the reverse charge, it is mandatory to clearly mention on the invoice that the applicable tax was paid in the reverse charge.