some Invoice Format and Rules was defined by the GSTN Council.
What is GST Invoice?
Invoice or bills is a list of service provided and goods sent, along with amount due for payment.
Who should issue GST Invoice?
If you are a GST registered business, you need to provide GST-complaint invoices to your clients for sale of goods or services.
What are the mandatory fields a GST Invoice should have?
A tax invoice is generally issued to charge the tax and pass on the input tax credit. A GST Invoice must have the following mandatory fields:
A. Invoice number and date
B. Customer name
C. Shipping and billing address
D. Customer and taxpayer’s GSTIN
E. Place of supply
G. Taxable value and discounts
H. Item details i.e. description, quantity (number), unit (meter, kg etc.), total value
I. Rate and amount of taxes i.e. CGST/ SGST/ IGST
J. Signature of the supplier
If the recipient is not registered AND the value is more than Rs. 50,000 then the invoice should carry:
- name and address of the recipient,
- an address of delivery,
iii. state name and state code
Types of invoices?
1. Bill of Supply
A bill of supply is similar to a GST invoice except for 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:
The registered person is selling exempted goods/services,
Registered person has opted for composition scheme
2. Aggregate Invoice
If the value of multiple invoices is less than Rs. 200 and the buyer are unregistered, the seller can issue an aggregate or bulk invoice for the multiple invoices on a daily basis.
For example, you may have issued 3 invoices in a day of Rs.90, Rs.80 and Rs. 120. In such a case, you can issue a single invoice, totaling to Rs290, to be called an aggregate invoice.
3.Debit and credit note
A debit note is issued by the seller when the amount payable by the 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 the 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
How many copies of Invoices should be issued?
For goods– 3 copies
For services– 2 copies