I think you’ll agree with me when I say:
GST is one of the major tax reforms to be implemented in the country since independence and with GST coming into operation from July 1st 2017, generation of invoice becomes a crucial factor in business transactions as it forms the base for filing returns and availing credit.
Through this post we talk about few aspects of GST such as
- Types of Invoices Under GST
- Timing for Invoicing under GST
- Method for issuing invoices
- GST invoice new additions
- What is Bill Of Supply?
- Supplementary Invoice
- Credit note.
which every business owner needs to be aware of.
Types of Invoices Under GST:
The following are the types of invoices considered valid under GST
- Sales Invoices
- Purchase Invoice
- Bill of Supply
- Credit Notes
- Debit Notes
- Supplementary Invoice
Timing for Invoicing Under GST
In the GST regime, new guidelines have been laid out concerning the issuing of tax invoices to customers while delivering Goods & Services. The following are the due dates for issuing invoices.
- Delivery of Services ( General): Within 30 days of delivery of services
- Delivery of Services for Banks & NBFC: Within 45 days of delivery of services
- Delivery of Goods (General): On or before date of delivery or removal of such goods
- Delivery of Goods (No Movement Involved): Earlier of delivery or making available of such Goods.
- Successive issuance of Goods: Invoice needs to be generated earlier of each issuance.
- Issuance of Credit Note & Debit Note: The following needs to be issued on or before 30th of September
following the end of the financial year when the supply was made or on the date of filing the annual return for that financial year.
Method for issuing invoices
- Delivery of Goods: For the delivery of Goods invoices needs to be generated in Triplicate which consists of a) Original for Recipient b) Duplicate for Transporter c) Triplicate for Supplier
- Delivery of Services: For the delivery of Services invoices needs to be generated in Duplicate which consists of a) Original for Recipient b) Duplicate for Supplier
GST invoice new additions
For claiming input tax credit it is important to issue and receive GST compliant invoices. The GST invoice has many new mandatory fields which needs to be included that were not needed to be included in invoices created before GST regime. For hassle free credit flow between the supplier and the receiver proper reporting of the Invoice Number needs to be looked into.
GST Invoice Sample
The following information needs to be included mandatorily in the GST invoice
- Name & Customer GSTIN
- Name & Supplier GSTIN
- Shipping & Billing address
- Invoice Number
- Invoice Date
- Place of supply
- HSN Code
- Description of Goods or Service
- Total value of the Goods or Services
- Rate and amount of taxes ie CGST/SGST/IGST
- If the recipient is an unregistered person and the value of goods mentioned in the invoice exceeds Fifty Thousand Rupees the name and address of customer as well as delivery address of goods needs to be mentioned.
- Digital or Physical Signature of the supplier certifying the invoice.
What is Bill Of Supply ?
In some cases the supplier is not allowed to charge any taxes hence he won’t be able to generate a normal tax invoice, in such cases a Bill of Supply is issued.
When there is an increase in the price of Service /Goods provided before GST and the same is applicable to GST then the supplier needs to issue a supplementary invoice to the recipient within 30 days from the date of price increase. The format of debit note is similar to tax invoice only the nature of invoice need to be mentioned such as Debit Note etc.
If there is a price reduction and GST needs to be charged in other past transactions a credit note is issued, and as mentioned above it needs to be issued on or before 30th of September following the end of the financial year or on the date of filing the annual return for that financial year.
Invoicing in GST is very much needed for both the supplier and the receiver. As mentioned in article there are a lot of new additions that need to be included in the invoice and due diligence need to be followed while creation of invoice as it will help in the seamless flow of credit between supplier and receiver. Make sure to upgrade your accounting software to comply with GST standards or use a GST compliant accounting software that can help to keep your accounts and avoid loss of credits and customers.