Invoice is a key function when it comes to the execution of a transaction. An Invoice under Goods and Service Tax or GST becomes a basic document for recording sale/ purchase of goods and services in books of accounts. The rules regarding invoicing along with a template of invoice are placed under GST INV-01, which covers concepts such as supplier’s details, GST tax rates etc.

What Is A GST Invoice?

A GST Invoice is a document created to be kept under record and is prepared under a sale transaction. In cases when a sale takes place, an invoice will be issued by the seller to the buyer. The details of a seller or a buyer with a registration number if any, along with the details of sales and other related information are covered in a sale invoice.

How To Prepare A GST Tax Invoice?

A tax invoice is issued based on the guidelines of tax authorities. It is prepared on the basis of the GST Law of India, and is issued by the supplier containing the following details.

1.    Name And Address Of Supplier

The name and address of the supplier must be mentioned. If the supplier has multiple places, GST invoice should be issued from the place where supply is made.

2.    GSTIN Number Of Supplier And Recipient

The GST Identification number or GSTIN of both the supplier and the recipient must be mentioned on the GST tax invoice. This acts as an evidence to substantiate the fact that the supplier has registered with the GST.

3.    Tax Invoice Number

Usually, an invoice is prepared with a consecutive invoice number. Under the GST tax invoice, a consecutive serial number, containing alphabets or numeric, has to be mentioned in the invoice. Invoice number cannot exceed 16 characters. For eg. if your GST invoice is named with only alphabets, numeric, or alphanumeric (numbers and alphabets) characters, it should have a unique number. Consecutive numbers are allotted to each invoice number as per time of issue of invoice.

4.    Date Of Invoice

The GST Law has prescribed time limits for issuing an invoice. Please refer our detailed article on Invoice for further details.

5.    Details Of Recipient On Invoice

The Name, Address, GSTIN and the shipping address along with the name of the state and its code must be present in the GST tax invoice.

6.    Description Of Goods/ Services In Tax Invoice

If Goods are supplied, then such goods will be mentioned in the GST invoice. In case service supplies are affected, the details pertaining to such services will also be mentioned in the GST invoice.

7.    HSN Code And SAC Code In GST Invoice

A Harmonized System number code and Service Accounting Code number can be used to find out details of your commodity. These codes will help ensure safety of commodities thus classifying it to reveal details only to you about your commodities and the slab fixed under it.  

8.    Unit Of Quantity To Be Mentioned In Tax Invoice

The quantity of goods and services must be mentioned in the GST invoice. This is similar to sales invoice details as mentioned above.

9.    Total Value Of Goods/ Service Mentioned In Invoice

The total value of goods or services will be mentioned similar to that mentioned under sales invoice.

10.   GST Rate And Amount Charged In Invoice

The rate of GST must be mentioned in the GST Tax invoice. CGST, SGST and IGST should also be mentioned in the GST Tax invoice depending upon the nature of transaction pertaining to inter-state supply or intra-state supply of Goods or Services.

After computation of GST, the amount of GST imposed with regard to taxable goods or services need to be mentioned in the GST tax invoice. Such GST amount will be mentioned separately as IGST, CGST and SGST.

11.   Inter-State Supply Of Goods/ Services

The place of supply along with the name of State, in case of a supply in the course of inter-state trade or commerce must be mentioned in the GST invoice.

12.   Place Of Supply Under GST Tax Invoice

If the place of supply differ from the place of supply of goods/services, such a place of delivery must be mentioned in the GST Tax invoice.

13.   Signature Of Supplier Or Authorised Representative

A GST Tax invoice has to be signed by the supplier or by his authorized signatory. The signature can be in digital form (eSign) as per the guidelines of GST authorities.

How To Avail GST?

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