How to prepare GST Invoice ?

Quick guide on GST Invoice Preparation.

An Invoice is a commercial instrument issued by a supplier to the recipient. It includes the details like parties involved in the transaction, description, quantity and rate of goods or services, date of transaction and other terms and conditions.

Time Limit for issuance of GST Invoice

  1. Taxable supply of goods:
    • Supply involves movement of goods: Invoice shall be issued before or at the time of removal of goods for supply to recipient.
    • In any other case: Invoice shall be issued before or at the time of delivery of goods or making available to the recipient.
  2. Taxable supply of services: Invoice shall be issued before or after the provision of service but within a period of 30 days from the date of supply of service.

Contents of GST Invoice

The tax Invoice issued by the registered taxable person to recipient must contain the following details,

  • Name, address and GSTIN of supplier,
  • A Consecutive serial number in one or multiple series,
  • Date of its issue,
  • If the recipient is registered- Name, address and GSTIN of the recipient,
  • If the recipient is unregistered- Name, address of the recipient and the address of the delivery (along with state name & code),
  • HSN/SAC code for goods/services,
  • Description of goods or services,
  • Quantity of goods,
  • Total value of supply of goods or services or both,
  • Taxable value of supply of goods or services or both after taking discount or abatement into account,
  • Rate of CGST, SGST / UTGST and IGST,
  • Amount of CGST, SGST / UTGST and IGST charged,
  • Place of supply along with the name of state in case of inter-state trade,
  • Address of delivery where the sale is different from place of supply,
  • Whether the tax is payable on reverse charge,
  • Signature or digital signature of the supplier or his authorized representative.

Requirement of HSN digits on GST Invoice

The board on the recommendations of council has specified the number of digits of HSN code to be mentioned on the tax Invoice for the class of registered persons:

S . NoAnnual Turnover in the preceding Financial YearNo . of digits in HSN code
1Annual Turnover ≤ 1.5 crores0
2Annual Turnover greater than 1.5 crores and less than or equal to 5 crores2
3Annual Turnover ≥ 5 crores4

Issuance of Credit Note

For issuing a credit note, an Invoice should have been issued earlier. The registered supplier of goods or services or both can issue credit note to the recipient of goods or services or both in the following cases.

  • Taxable Invoice in Invoice > Taxable value in respect of such supply.
  • Tax charged in Invoice > Tax payable in respect of such supply.
  • When the goods supplied by the supplier are returned by the recipient.
  • Where the goods or services or both found to be deficient.

Issuance of Debit Note

For issuing a debit note, an Invoice should have been issued earlier. The registered supplier of goods or services or both can issue debit note to the recipient of goods or services or both in the following cases.

  • Taxable Invoice in Invoice < Taxable value in respect of such supply.
  • Tax charged in Invoice < Tax payable in respect of such supply.

Quick Invoice FAQs

1Can an unregistered person issue a tax Invoice?

No, only a registered person can issue a tax Invoice.

2What is bill of supply?

A bill of supply should be issued instead of tax Invoice in case of the following supplies,

  • Supply of exempted goods or services.
  • Supplies made by a composition supplier.
3What is receipt voucher?

Receipt voucher is a document issued when advance is collected or received in advance in relation to supply of goods or services.

4What is refund voucher?

When the registered taxable person receives an advance but subsequently no supply is made and no tax Invoice is issued, the registered taxable person may issue a refund voucher.

5What is the manner of issuing tax Invoice?
  • In case of taxable supply of goods: Invoice should be prepared in triplicate (original for recipient, duplicate for transporter and triplicate for supplier).
  • In case of taxable supply of services: Invoice should be prepared in duplicate (original for recipient, duplicate for supplier).
6What is the Invoice or other documentation required in case of reverse charge?

The recipient of goods or services shall issue a payment voucher at the time of making payment to supplier in case of goods or services that are notified on which tax is payable on reverse charge.

If the supplier is unregistered person, the recipient is required to issue an Invoice in respect of such goods or services.

7What is revised Invoice and what is the time limit for issuing revised Invoice?

Revised Invoice can be issued against the Invoice already issued during the period starting from effective date of registration till the date of issuance of certificate of registration. It can be issued within 1 month from the date of issuance of certificate of registration.

8What are the cases in which registered taxable person is not required to issue tax Invoice?

A registered taxable person is not required to issue a tax Invoice in respect of supply of goods or services or both if the value does not exceed Rs 200 subject to the following conditions,

  • The recipient is not a registered person.
  • The recipient does not require such Invoice.
9What is the time limit for issue of Invoice for goods sent on approval?

Invoice should be issued at the earlier of the end of 6 months from their removal or approval to accept supply.

10Is it possible to take input tax credit based on the bill of supply?

No, it is not possible to take input tax credit based on bill of supply.