GST Invoice: A Complete Guide

Table of Contents

If your business is GST registered, you must issue GST invoices to your customers for the sale of goods and services. Your GST-registered vendors will issue you purchase invoices that are GST-compliant. The invoice lists the parties involved in the transaction as well as a description of the goods or services provided.

Due to the importance of the invoice in obtaining GST credit, an incorrect invoice may obstruct the process. As a result, getting the correct GST invoice as a buyer and issuing a GST invoice as a seller or supplier is critical.


What is GST invoicing?

 A GST invoice is a business document issued by a seller or supplier to the recipient or buyer of goods and services. A document like this lists the names of the parties involved as well as the specifics of the goods or services provided in a transaction.

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Mandatory fields in GST Invoice

To charge the tax and pass on the input tax credit, a tax invoice is usually issued. The following fields are required on a GST invoice:

Invoice number and date

  1. Customer name
  2. Shipping and billing address
  3. Customer and taxpayerโ€™s GSTIN (if registered)**
  4. Place of supply
  5. HSN code/ SAC code
  6. Item details i.e. description, quantity (number), unit (meter, kg etc.), total value
  7. Taxable value and discounts
  8. Rate and amount of taxes i.e. CGST/ SGST/ IGST
  9. Whether GST is payable on a reverse charge basis
  10. Signature of the supplier


If the recipient is not registered AND the value is more than Rs. 50,000 then the invoice should carry:

  1. Name and address of the recipient,
  2. address of delivery,
  3. state name and state code

Composition Scheme

Who should Issue GST Invoice?

If your business is GST registered, you must issue GST-compliant invoices to your customers for the sale of goods and/or services.

Your GST-registered vendors will issue you purchase invoices that are GST-compliant.


When should you file a GST invoice?

Goods( Normal Case): On or before the date of removal/Delivery

Goods (Continuous Supply): On or before the date of issue of account statement/ Payments. 

Service(General Case): Within 30 Days of supply services. 

Services (Banks and NBFC): within 45 Days of supply services. 


How many copies of GST Invoices should be raised?

  • For goodsโ€“ 3 copies
  • For servicesโ€“ 2 copies


Are invoices revisable before the issue of GST?

Yes. we can make changes to invoices that were issued before the introduction of GST. Before receiving a permanent registration certificate under the GST regime, all dealers must apply for provisional registration. This applies to all invoices issued between the implementation of GST and the issuance of your registration certificate.

As a dealer, you must issue a revised invoice to replace any previously issued invoices. The revised invoice must be issued within one month of the registration certificate being issued.


Special cases of GST invoicing

The government has relaxed the invoice format issued by the supplier in some cases, such as banking and passenger transportation.

Suggestions:

Check out our other blogs: GST FAQsGSTR-1GSTR-3BBudget 2022 highlights.
Also, check out our billing and invoicing App.

Swipe is a free GST billing software, that helps you track your sales, purchases & estimates in real-time. With Swipe, you can easily manage your inventory, file GST returns, and create & share professional invoices.

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