1. GST Tax Invoice - Everything that you must know regarding GST Invoice
GST was announced several times by many governments but was actually implemented in the year 2017 on the 1st of July. GST is the only tax that is levied on the supply of goods and services right from the manufacturer to the consumer and essentially replaces multiple indirect taxes. The main purpose of the GST reform was to merge different types of taxes in the context of single tax taxation and to make one tax one nation. There are some random queries here that can be related to the GST invoice bill. We have expressed a brief understanding of what this document is and the several guidelines involving it. You may be very well aware that what is a GST invoice probably, but still, if any of you does not understand a GST invoice then we have explained below what is GST invoice and its type. Read on!
2. What is the GST Invoice?
A GST invoice is a type of bill or can say GST-compliance which includes the information of the parties involved in the transaction of goods and services as well as lists the purchased items. However, It also presents discounts and the levied tax on goods and services.
3. Elements of a GST invoice
There are certain elements that a GST invoice includes. We have expressed below the list of those elements that must be present in a GST tax invoice specified under Rule 54 of the CGST Act of 2017. Name, GSTIN, Total tax amount and discounts if any Reverse charge Signature of the invoice issuer Name of the customer GSTIN of the customer if registered Information of provided products or services including description, quantity, etc. SAC code or HSN code Rate of CGST, IGST, UTGST, and SGST charged and address of the supplier Invoice number Date of issuance Invoice
4. When should the GST invoice be provided?
The allocation of a GST invoice is related to the concept of time of supply under GST laws. We will look into the time to issue an invoice under GST and the time of supply in a brief. If the value of any goods and services is overreaching the amount of Rs. 200 then the supplier must provide the GST invoice for all the supply of goods and services. However, the time for the issuance of the GST invoices varies based on the type of supply of the goods or services. In some cases, the supplier shall issue a GST tax invoice at the time of providing the goods or while making the goods available to the recipient or buyer. But in such cases, a delivery challan can be issued by the supplier to render a GST e-way bill and transport the goods to the recipient without a tax invoice. For services, the supplier can provide the GST tax invoice before or later for providing the service within 30 days of issuance. For Goods For services In the case of normal supply, the GST invoice must be issued before or on the date of providing the services. For the services of financial services, the GST invoice must be issued within 45 days from the date of issuance of supply. In the case of continuous supply, the GST invoice must be issued on or before the issuance of the account statement. In the general case, the GST invoice must be issued within thirty days of providing the supply. If the supplier is GST registered for the issuance of goods and services, then, the supplier is required to furnish an invoice based on the taxable value, if asked by the customer.
5. Rules for GST invoices
GST invoice signature rules As per the CGST Rules, the issuer's signature is one of the mandatory fields in a GST invoice. Following are the specifications of a valid signature are as follows. The bill can be signed digitally or by the hands, and it is affixed as per the mandates of the Information Technology Act, 2000. The GST invoice must be signed by the supplier/authorized representative. His/her ‘authorized representative’ can be a company secretary as per section 116(2), a practicing advocate, a chartered accountant, a retired officer of the Commercial Tax Department, or a regular employee appearing on the supplier’s behalf.
6. GST invoice payment rules
This is another rule under the CGST Act that concerns a situation where a GST-registered individual purchases from a seller who is not registered. There can be 2 possible cases here. If the individual registered under GST purchases from an unregistered community, the former has to furnish a tax invoice. If the registered individual obtains supplies that are exempted from GST, s/he is required to furnish a bill of supply except for an invoice bill. Now, you might be wondering why it might get difficult to always issue an invoice following such extensive guidelines right upon purchase every time. To ease this process, the Indian government has also provided outlines regarding the time of issue of invoices under GST.
7. GST invoice serial number rules
As per Rule 46 (b) the invoice numbers must be in sequential or in consecutive order. This must be unique for a financial year, containing an alphanumeric combination number. The characters of a serial number should not exceed 16 characters. GST must be divided into CGST, SGST, and IGST. In case of any transactions which is made outside the issuer’s state, then a distinct tax known as an IGST needs to be levied. SGST and CGST should be levied against sales within the same state.
8. How many copies of invoices are to be issued?
There are a number of invoice copies that should remain with all parties including in the selling and purchasing of goods and services. For Services In the case of services, the issuer is required to issue 2 copies of the invoice. Original copy: This copy is sent to the buyer Duplicate copy: This copy remains with the supplier for the post reference. These are the applicable information pertinent to a GST invoice bill. If you are a registered dealer, ensure to issue such documents to avail of Input Tax Credit (ITC). If you are not GST-registered yet, consider getting a certificate to help your business benefit from such regulations. For Goods, In case of goods, the dealer must issue 3 copies of the GST invoice bill. Original Copy: Obtained by the buyer Duplicate Copy: obtained by individuals delivering the products from the end of suppliers to the recipient’s end. Triplicate Copy: This should be kept with the dealer.
9. Revising invoices issued before GST
There may be multiple examples of getting a wrong GST invoice bill provided. but there is a provision to revise such tax invoices before. however, all sellers are also required to apply for provisional registration before they get the permanent certificate. Any tax invoice provided from the date of GST execution till the date on which the permanent registration certificate is provided must have a revised invoice under GST given against them. This must be done within a month from the date of the issuance of the registration certificate. This revised tax invoice under GST must have “Revised Invoice” mentioned on it with all the essential information of a tax invoice.
Frequently Asked Questions
Is it possible to provide an invoice before rendering the services?
Yes. you can issue an invoice before providing the services. But make sure that the issuance date of services must not cross.
Who can issue GST Invoices?
The suppliers need to issue a GST invoice on the provided goods and services exceeding the value of Rs. 200.
What is the difference between the due date and invoice date?
The due date refers to the payment that is due on the invoice. But on the other hand, invoice date is the date of invoice creation.
Can I sign the invoice digitally by DSC?
Yes. You can sign the invoices digitally by the DSC.
How many copies of the invoices can be issued?
There are 2 copies that can be issued based on the services and in the case of the goods, there can be 3 copies provided.
How can I issue an invoice in reverse charge?
You will be required to mention the tax paid on the reverse charge in case of GST payable in reverse charge on the GST invoices.
What is IGST?
IGST is represented as an integrated Goods and Service Tax which is a part of the concept of “one nation one tax.” IGST is taxed on the supply of goods and services from one state to another.
What is GSTIN?
GSTIN is 15 digit identification number that is provided to taxpayers who are registered under the GST laws.
Is it essential to mention the due date on the GST invoices?
Yes. Mentioning the due date on the GST invoices enables the customers to make the payment within the described time.