Tax Invoice Under GST (Goods & Service Tax)

Introduction

Tax Invoice under GST is an invoice, which contains specific information required for effective function of GST system.

This article will help you to know about Tax invoice under GST, Mandatory details of Tax Invoice, type of Invoice and other related details.

Topics Covered –

What is Tax Invoice under GST?

According to Section 31 of the CGST Act, 2017, a registered person supplying taxable goods or services shall issue a Tax Invoice.

A Tax Invoice under GST is an invoice, which contains specific information required for effective function of GST system. This invoice contains a list of goods or services provided, amount due for payment and other mandatory details, which we will discuss in this article.

What are the mandatory particulars should be mentioned in the Tax Invoice?

A tax invoice is usually issued to charge the tax and pass on the input tax credit to the Buyer.

A GST Tax Invoice should consist of the following mandatory details.

Contains the word “Tax Invoice”.
Invoice number
Date of issue of the Invoice
Name, Address & GSTIN of the Supplier
State Name & State Code of the Supplier
Name, Address & GSTIN or UIN if registered, of the Buyer
State Name & State Code of the Buyer.
HSN Code / SAC Code.
Description of goods or services.
Quantity (number), unit (meter, kg etc.), total value.
Taxable value of goods or services taking into accounts the discount, if any.
Rate and amount of tax.
Destination details
Dispatch document number
Dispatched through
Signature of the Supplier

Here is the Invoice format under GST for your reference

Time for Issuance of Tax Invoice under GST.

Following are the due dates for Issuing Tax Invoice by Supplier:

In case of Supply of Goods

Goods Normal Case (Where movement of goods are involved)

On or before date of Delivery.

Goods where movement is not required

On or before date of issue of payment.

Goods Continuous Supply

– At the time the goods are delivered / made available to the recipient.

In case of Supply of Service

General Services

– Maximum 30 days of Supply of Services.

Bank & NBFCs Service

– Maximum 45 days of Supply of Services.

What is the importance of Tax invoice under GST?

Under GST, a Tax Invoice is an important document, as it is considered as evidence for supply of goods or services. Also, it is an essential document for the recipient to avail Input Tax Credit (ITC).

A registered person cannot avail Input Tax Credit unless he is having Tax Invoice or a Debit Note.

How many types of Invoices are prescribed under GST?

Different types of invoices prescribed under GST are as under: –

Tax Invoice – Tax Invoice is mandatory document to be issued by every person registered under the GST for all supply of goods or services.
Electronic Invoice (E-Invoice) – E-Invoice stands for the electronic invoice, which can be alternatively called a digital invoice. A digital invoice can be viewed and processed digitally. It contains data from the supplier in a structured format that the buyer’s financial system can automatically recognize, without requiring manual data input from the administrator.

Under the ‘E-invoicing’ system a specific class of person (As of now business having turnover more than 500 Crore) have to prepare an invoice.

Bill of Supply – A bill of supply in GST is issued in cases where tax is be charged, i.e.
- On sale of Exempted Goods or Services under section 11 of CGST Act, 2017.
- Seller has opted for Composition Scheme under section 10 CGST Act, 2017.

Debit Note and Credit Note – Debit or Credit Note is issued when earlier tax invoice for goods / services issued is either less or more than taxable value. Reason of which could be: –

- Tax invoice has a lower / higher taxable value.
- Tax invoice has a lower / higher tax value.
- Buyer refunds the goods to the supplier.

Debit Note is issued when an earlier issued tax invoice for the goods / services is less than the taxable value.

Credit Note is issued when an earlier issued tax invoice for the goods / services is more the taxable value. Apart from this, Credit Note is also issued when buyer returns the goods to supplier

Aggregate Invoice – If the value of several invoices is less than Rs. 200 and the buyer is unregistered, in that case the seller can issue an Aggregate Invoice (Bulk Invoice) for the multiple invoices on a daily basis.

How many copies of Tax Invoices should be issued?

For Goods

3 Copies of Invoices are issued.

- Original for Recipient
- Duplicate for Transporter
- Triplicate for Supplier

For Services

2 Copies of invoices are issued.

- Original for Recipient
- Duplicate for Supplier

GST Invoicing under Special Cases

In case of banking, passenger transport, etc., the government has provided relaxations on the Invoice format issued by the Supplier.

Conclusion

A “Tax Invoice” under GST regime, means the tax invoice referred to in Section 31 of the CGST Act, 2017.

Invoicing under GST can be onerous task, so it’s always better to take Expert’s Advise. Contact Manthan Experts’ team to get Instant assistance in any GST related matter.