GST invoice is the primary commercial document which is issued by supplier of goods or services to recipient and it is also issued to the seller if goods in some cases.
In general it can be said that is document from which GST sales, purchases, sales returns, purchase returns revolves around. Proper and correct GST invoicing helps both the supplier and the recipient for correct accounting and payment of GST liabilities. GST invoice is the base document on which gst return filing date is prepared for gst monthly return filing
Broadly speaking GST invoice identifies supplier, recipient, and provides information about the description of goods quantity of goods, date, mode of transport and other price related details. Apart from mandatory details required by SEC 31 of CGST act for practical purpose it is advisable to add details of payment terms, bank details, etc.
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GST Invoice Vs Bill of Supply ?
GST registered dealer will generally issue GST invoice to recipient but in the case of the dealer registered under composition scheme, bill of supply will be issued by the supplier, similarly in the case of exempted goods or services bill of supply will be issued by the supplier.
Bill of supply is similar to Invoice without tax calculation having the words mentioned as bill of supply.
Contents of Invoice or Invoice format
Proper invoice shall contain all the below details
- Serial number of invoice which is consecutively numbered
- Date of Invoice
- Name, Address, GSTN of supplier and recipient
- If recipient is unregistered and value of goods or services is more than Rs.50,000 then details of HSN / SAC code shall be mentioned.
- Description, quantity, rate, unit of goods or services shall be mentioned.
- Total value, taxable value, discount, tax amount, tax rate separately shown as IGST, SGST, CGST etc.
- Address of delivery
- Details regarding reverse charge
- Signature of authorized person.
How do I mention invoice date for sale of goods or services ?
Incase the dealer is selling goods date of invoice shall be before or at the time of removal of goods or when the goods available for the recipient to take delivery or any time before that. In simple terms invoice date should be on or before the sale of goods which was for the recipient to take delivery. To give a clear picture as gst return filing consultant let me provide simple real life example below
Eg : Mr. Satish gets order from Mr. Ravi on 27/05/2022 and payment of Rs.1000 made for the goods worth of Rs.15,000 on same day and balance amount payable on credit, Satish allows to take the delivery of goods on the 28/05/2022. In this case even tough the sale order is confirmed only on 27th but delivery is not provided on same day date of invoice shall be 28/05/2022(date on which goods are available for delivery).
Similarly in case of supply of services invoice can be issued before supply of services or after supply of services but when invoice is issued after supply of services it shall be issued with in 30 days from the date of supply of services.
Eg : Mr. Satish gets order from Mr. Ravi on 25/05/2022 and work is completed on 31/05/2022. In this case invoice can be issued any time on or after 25/05/2022 or with in 30 days after 31/05/2022 (date of completion).
So time limit is From 25/05/2022 to 30/06/2022, with in this period invoice shall be issue to the recipient of services.
How to issue invoice in case of advance payment by recipient ?
Invoice shall not be issued for each advance receipt instead the supplier needs to issue receipt voucher for amount received with al the details that is contained in the invoice in addition to amount received. If the tax rate at the time of advance payment is not known GST rules permit to use the rate of 18% for tax calculation.
When to issue credit note or debit note ?
- Credit note issued when the the value of goods or tax amount charged is more than actual what it should be the credit note issued to the recipient.
- In simple terms where the invoice total is reduced credit note is issued.
- Credit note shall be consecutively numbered and filed in the month respective month.
- Credit note document shall clearly mention the words “CREDIT NOTE”.
- All the Information related to supplier and recipient that will be added in Invoice shall present in the credit note.
- Clear details about amount of credit against taxable value and tax shall be presented.
- Similarly debit note is issued when tax amount or taxable value needs to be increased from original amount.
