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.
The tax Invoice issued by the registered taxable person to recipient must contain the following details,
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 . No||Annual Turnover in the preceding Financial Year||No . of digits in HSN code|
|1||Annual Turnover ≤ Rs. 1.5 crores||0|
|2||Annual Turnover greater than Rs. 1.5 crores and less than or equal to 5 crores||2|
|3||Annual Turnover ≥ Rs. 5 crores||4|
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.
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.
No, only a registered person can issue a tax Invoice.
A bill of supply should be issued instead of tax Invoice in case of the following supplies,
Receipt voucher is a document issued when advance is collected or received in advance in relation to supply of goods or services.
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.
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.
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.
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,
Invoice should be issued at the earlier of the end of 6 months from their removal or approval to accept supply.
No, it is not possible to take input tax credit based on bill of supply.
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