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All About Invoicing Under GST

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Invoicing under GST is going to go through some changes. It forms a crucial function when it comes to the execution of a transaction. On every sale/purchase an invoice is issued by the supplier i.e person making the sale. The invoice contains S.No, details of product such as product name, description, quantity, etc along with details of supplier, purchaser, tax charged and other particulars such as discounts, terms of sale etc. and all of these would need to be depicted in the GST invoice.

Format of Invoice

Based on GST Invoice Rules (Rule 5), 2016 issued by the Central Government, two kinds of invoices can be issued under GST namely tax invoice and bill of supply.

Time Limit to Issue Invoice Under GST

The GST Model law has defined the time limit for issue of GST tax invoices, revised bills, debit notes and credit note. In normal case, the GST tax invoice has to be issued by a registered dealer on or before the time when goods are removed for supply (where supply involves movement) and on or before the time when delivery is received by the recipient (where movement of goods is not involved).

In case of supply of services the invoice has to be issued issued within 30 days(45 days in case of banks and NBFCs) of supply of services.

How to Revise Already Issued Invoices

As per the revised GST Model Law section 28(3a) revised tax invoices can be issued by a registered taxable person within one month from issuance of certificate of registration i.e. GST Registration. It will be issued against the invoice already issued during the period starting from the effective date of registration till the date of issuance of certificate of registration to him.

What is Bill of Supply?

Tax invoice is generally issued to charge the tax and pass on the credit. In GST there are some instances where the supplier is not allowed to charge any tax and hence a Tax invoice can’t be issued instead another document called Bill of Supply is issued.

What is Debit Note & Credit Note?

Where original tax invoice has been issued and taxable value/GST tax amount in the invoice exceeds/falls shorter than the actual taxable value/tax amount, in such cases the supplier can issue debit/credit note.                                                                                                                                                                                                                                                                                                                                                              source : cleartax.in

Or create invoices on platforms like Vyapar that come with pre-defined GST enabled invoice formats. This will save you a lot of time and effort.

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Happy Vyaparing!!!

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