Home > GST > Help Center > GST Tax Invoice features Last Updated: Sep 23rd 2022

How a Perfect GST Tax Invoice should look like ?

A Tax Invoice is not only a trade document but also an instrument that goes out side of your organization, hence it carries your branding and confidence with it. This document shows how a Perfect Tax Invoice should look like, its major components, and best practices in creating one. The invoice shown here was generated from EZTax.in GST Accounting Software.

Components of a Tax Invoice

1. Business Info: Top-Left 1st column of the Invoice is generally considered to be the best area to represent your business. Business information should contain business name, logo, business address with mail id, mobile / phone number, along with the GST Number (VAT/ABN for outside of India).


2. Buyer / Consignee Details: Top-middle column is generally meant for your Client information (whom you are selling to), should contain buyer details such as buyer business name with GST Number, buyer business address with mail & mobile number, buyer type such as registered, unregistered, export or SEZ customer or as it defined in the Customer Master.


3. Invoice Details: Top right column is the area to define the Document Type (Eg. Tax Invoice), invoice number, invoice date & due date for the invoice, and the total invoice amount, it is advised to have this information highlighted as possible, as this information is most sought after in the invoice when a tax authority, transporter etc. need to verify the shipment etc.


4. Transport / Other Invoice Information Should contain PO reference, transport details like shipping company, vehicle number, e-Way bill number, or any reference number.


5. Product / Service Information: The middle portion of the invoice should have the products that were sold, the information such as Product / Service name, additional information, HSN code, quantity, price, discount, tax rate(s). Note: If you are using EZTax.in GST Accounting software, all the components mentioned here are highly customizable to your taste.


6. Tax Summary: While this is optional to many countries as they may have single tax structure, for India, it is needed to reflect full break up of taxes such as CGST, SGST or IGST, total taxable amount after all the discounts, final balance due after payments etc.


7. Terms & Conditions (T&Cs): This area based on the type of business such as trading / manufacturing / services, should use to write the terms & conditions of business / product / service in subject.
   
   In EZTax.in GST Accounting, the T&Cs can be configured per the business, and the same can be changed at the time of Invoice / Estimate / DC / PO / Bill Creation.


8. Signature: Today most invoices are generated by the system and no additional stamping as such required (few exceptions) and a signature image through the system add not only reduce the time to generate and distribute but also show the confidence in the process. Refer below best practices to get a safe, compliant invoice for your business.

Best Practices

1. Clean Design: Try avoiding too many boxes, lines, and have the lines as a way to separate only main components of an Invoice.


2. Compliance: The essential main components were given in the below image, which must be maintained, in addition to, having the words 'Tax Invoice'.


3. Colors: Why not days are gone to limit to only Black / White. But when using the colors, maintain the proper contrast so that when printed on a black and white printer, the information should be properly visible.


4. Logo / Trademark: Add the visible identification that can be easily attribute to your work / business. this is a great marketing tool while you are sharing the invoices to various people / entities while serving your Client.


5. Signature: If applicable to your business add a visible signature as an authority have complete tax document. per law (vary from country to country), this signature must be the authorized business signature.