GST INVOICE FORMAT

The introduction of the Goods and Services Tax (GST) in 2017 revolutionised the invoicing system for businesses in India. A GST tax invoice is a legal document issued by registered suppliers. It details the sale of goods or services and includes vital information, such as the description of goods / services, GST rate and amount of GST charged. It plays a crucial role in ensuring compliance with GST regulations and claiming input tax credit.

WHAT IS AN INVOICE AND WHAT ARE THE NEW THINGS TO BE ADDED TO A GST INVOICE?

An invoice is like a bill which has the summary of all the goods and services that have been/will be provided with a sum of the amount that is due. An invoice includes the actual charge of the goods and services along with different charges such as VAT, Indirect Tax, Import/Export charges etc.

With GST being rolled out from the 1st of June, 2017 all the miscellaneous tax charges and overheads will be combined under just one head mainly known as the – Goods and Service Tax. Under this, the charges are divided as either Central and State or Central and Inter-State Tax.

Key Components of a GST Invoice

1. Name, address and GSTIN of the supplier
2. Name, address and GSTIN of the recipient (if registered)
3. Unique invoice serial number
4. Date of issue
5. HSN code for goods or accounting code for services
6. Description and quantity of goods or services
7. Total value of supply before tax
8. Taxable value after factoring discounts
9. GST rate (including CGST, SGST, IGST or cess)
10. Place of supply and state (for inter-state transactions)
11. Signature or digital signature of the supplier

Types of GST Invoices

1. Regular GST Invoice: Issued for taxable supplies to registered recipients.
2. Bill of Supply: Suppliers issue a bill of supply for exempt goods or services or when the recipient is unregistered, provided the transaction value is below ₹200.
3. Debit Note: Issued to increase the taxable value or GST amount on an original invoice.
4. Credit Note: Issued to decrease the taxable value or GST amount on an original invoice.
5. Self-Invoice: Issued by the recipient in case of reverse charge transactions where the recipient pays GST.

WHO SHOULD ISSUE A GST INVOICE?

Every individual who has registered themselves on the GST portal and fall under the GST rule needs to issue a GST invoice for their suppliers and dealers.

If you are a small business/enterprise and do not fall under the minimum GST bracket, it is not necessary for you to issue a GST invoice. Check the List of GST Tax Slabs to find which business/enterprise falls under which GST slab. However, your suppliers and dealers registered under GST will provide you with a GST invoice.

 

WHAT ARE THE MANDATORY FIELDS OF THE GST INVOICE?

The GST invoice can be in different formats and have personalized value additions depending on firm to firm. However, there are certain fields that are mandatory and common between all the invoices. Below is the list of all the mandatory fields one needs to ensure on their GST Invoice.

• Name, address, and GSTIN of supplier
• Invoice number and Date
• Type of invoice – Tax Invoice, supplementary invoice, revised invoice etc.
• Customer and Taxpayers GSTIN (If registered under the GST Portal)
• HSN or SAC code for goods and services provided
• Details of goods and services provided – i.e. Description of goods and services, Quantity, Unit, Final Value
• Total amount value of the goods and services provided
• Amount of discounts if any
• Tax Rate for every item
• GST Rate % and total value under Central and State or Central and Inter-State (CGST, SGST, IGST)
• Place of supply and name of supplying state
• If GST is payable on a reverse charge basis
• Address of delivery (If different from the place of supply)
• The total amount of goods and services include discounts and taxes
• Signature/Digital Signature of the supplier or authorized person

WHEN SHOULD A GST INVOICE BE ISSUED?

A GST invoice can be issued only till a particular time and has a defined time period. The table below shows the timeline for the issuance of the invoice based on the good/service

Type of Goods/Service	Time Period
Goods – Normal Case	On/Before the date of delivery
Goods – Continuous Supply	On/Before the date of issue of account  statement/Payment
Services – General Case	Within 30 days of supply of the service
Services – Banks and NBFCs	Within 45 days of the supply of service

Note: If a person paying tax on reverse charge receives goods or services from an unregistered supplier, the receiver needs to issue an invoice on the date of receipt of the respective goods or services.

HOW MANY COPIES OF THE GST INVOICE DOES A SUPPLIER NEED TO MAKE?

The copy of invoices again is divided depending on the type of good/service provided. The table below shows how many copies a supplier needs to make.

WHAT ARE THE TYPES OF GST INVOICES?

Bill of Supply

There are a few goods and services that come under the 0% tax bracket. Due to this, the suppliers cannot charge any tax but this does not mean they do not issue any proof of document. Such dealers have to issue a Bill of Supply. A bill of supply is issued when GST is not applicable to a transaction or when GST is not to be recovered from the customer.

Aggregate Invoice

Quite often the value of multiple bills is less than a particular value and the buyer is not registered under the GST portal. Here, the supplier can issue an aggregate bill or an aggregative invoice. This is actually a single invoice with values over a period of time.

Debit and Credit Notes

A debit note is issued when the amount paid to the supplier increases while a credit note is issued when the amount paid to the supplier decreases. There are various conditions and instances under which debit and credit notes are issued.

WHERE TO DOWNLOAD THE FORMAT FOR GST INVOICES FROM?

The GST official website provides a format for the invoice along with many other websites and tax-related online portals that let you download a standardized GST format invoice. However, if you have a business on a large scale and need better services, it is advisable to have a personalized format for carrying out your business.

Conclusion

The GST invoice format is a critical aspect of GST compliance for businesses. By including all mandatory details and applying the correct GST rate based on the HSN code, you can avoid penalties and successfully claim input tax credit. In case of cash flow issues, an MSME business loan or online business loan can help businesses meet their GST liabilities. Before you apply for a business loan, ensure you meet the minimum turnover, business vintage and credit score requirements set by lenders.

If you’re looking for quick and affordable business loans online to pay your GST, consider FlexiLoans business loans. With minimal documentation, fast approval and flexible repayment options, FlexiLoans makes it easy for businesses to get the funds they need. Check your business loan eligibility criteria and apply for a collateral-free MSME Loan today!

FAQs

1. What is the difference between a regular GST invoice and a bill of supply?
   A registered supplier issues a regular GST invoice for taxable supplies to registered recipients, including all GST details. In contrast, suppliers issue a bill of supply for exempt goods or services or low-value supplies to unregistered recipients, and it does not include any GST details.
2. Can I claim input tax credit without a proper GST invoice?
   No, you must have a valid GST tax invoice to claim input tax credit. Without all the required details, including the GSTIN and the correct HSN code, you cannot claim the GST paid.
3. What is the time limit to issue a GST invoice?
   For goods, you must issue the GST tax invoice before or at the time of removal for supply.
4. What happens if you do not follow the GST invoice format? Failure to comply with the prescribed GST invoice format can result in penalties, interest charges, and even cancellation of GST registration. Moreover, the recipient may lose the ability to claim input tax credit.
5. What is the importance of the GST tax slab and HSN code in a GST invoice, and how do they affect compliance?The GST tax slab determines the applicable GST rate on goods and services, while the HSN code classifies these items for accurate taxation. Including both in a GST invoice is crucial for compliance, ensuring correct tax calculations and facilitating input tax credit claims.

Read More:

Advantages and Disadvantages of GST in India

Types of GST in India

GST Number

Checklist of Documents Needed for GST Registration