GST INVOICING

GST INVOICING

GST invoicing is the most important document as it is evidence of the supply of goods or services and is issued by the registered taxable person. In order to avail Input Tax Credit, one of the most important conditions is to issue a GST invoice. If he does not issue a GST invoice then the person subsequent to him ie., the person who brought it (Registered Taxpayer) will not be able to take the benefit of tax while in use the same in course of business. The government has also introduced a concept of e-invoicing. Also, the GST invoice has various types as provided under the GST law, the same issued in accordance with the registered person making the supplies, we will discuss it on a later stage.

GST invoice is a very important document as it is the evidence of supplies of goods or services in accordance with the GST law, one needs to understand the components of GST invoice, here are the basic and most important descriptions which should be there in every GST invoice:

  • Name of the parties
  • Date and place of supply
  • Details of the goods or services being provided
  • Quantity
  • Price charged
  • HSN code
  • Discount, if any

Format has also been defined under the GST Act

IMPORTANCE OF GST INVOICING

Here you can understand why GST invoicing is of vital importance, some of the factors are as follows:

  1. Proof of Supply: It forms a proof of supply which means that a suit can be brought or payment can be demanded on the basis of GST invoicing. It is mandatory for a person registered under the GST Act to raise an invoice whenever, he is supplying any goods or services to his clients.
  2. Claiming ITC: As already discussed, in order to avail Input Tax Credit one of the most important conditions is to issue a GST invoice. If he does not issue a GST invoice then the person subsequent to him ie., the person who brought it (Registered Taxpayer) will not be able to take the benefit of tax while in used the same in course of business.
  3. Time of Supply: It reflects the time of supply, the date mentioned in the invoice is served as a time of supply of goods or services so while understanding the time of supply GST invoice is very important.

TYPES OF INVOICES

There are various types of Invoices as defined under the GST Act issued at the time of supply of goods or services which are as follows:

  1. Tax Invoice: A Tax invoice is nothing but an evidence of supply of goods or services issued by registered taxpayer to the recipient. Here are the basic and most important descriptions which should be there in every Tax invoice::
  • Name of the parties
  • Date and place of supply
  • Details of the goods or services being provided
  • Quantity
  • Price charged
  • HSN code
  • Discount, if any
  1. Bill of Supply: Bill of Supply is one of the type of invoices where a bill is issued by a registered person supplying any exempted goods as well as the person opted for composition scheme in GST Act.
  2. Refund Voucher in Case of Receipt of Advance Payment: Receipt voucher is issued by the registered taxpayer who received an advance payment against the supply of goods or services. This is also known as a document that is a proof of receipt.
  3. Invoice in Case of Continuous Supply of Goods and Services: As we know that there are certain cases when goods or service being provided on a continuous basis. Here successive statements of accounts or successive payments are involved and here invoices are being issued on or before each such statement being issued or payment received by the supplier of goods or services.

TIME LIMIT OF ISSUING THE GST INVOICE

 

 

IN CASE OF SUPPLY OF GOODS

 

 

IN CASE OF SUPPLY OF SERVICES

 

The GST Invoice shall be issued on or before:

 

• Removal of Goods, where supply involves movement of goods

• Delivery of goods to the recipient, where supply does not require movement of goods

•Issue of account statement/ payment, where there is continuous supply

 

The GST Invoice shall be issued within:

 

• 30 days from the date of supply of the services

• 45 days from the date of supply of the service, where the supplier is an insurer or banking company or a financial institution

 

 

MANNER OF ISSUING INVOICES

The GST invoice is to be prepared in triplicate (3 Copies), in case of supply of goods and shall be issued in the following manner:

  • The Original copy shall be marked as Original for Receipt.
  • The Duplicate copy shall be marked as Duplicate for Transporter; and
  • The Triplicate copy shall be marked as Triplicate for Supplier

Further, all the Serial numbers of invoices as are issued during any Tax period shall be filed in electronically return as provided under the GST Law in FORM GSTR-1.

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