GST Invoice Creation

A GST Invoice is created as an evidence of the supply of goods and services along with all the significant details regarding such supplies. An individual who has been registered under GST should have the invoice or debit note in order to claim the benefit of Input tax credit. Also, merely possessing the note would not work alone if the details mentioned in it are not right.

 

When to raise GST Invoice?

The timing would depend on the nature of the supply and in case of supply of the taxable goods, it registered person would issue an invoice during any of the following mentioned time :-

  • Before the removal of the Goods
  • After the removal of the Goods
  • Delivery of the Goods
  • After the Recipient is in possession of the Goods.

In case of taxable service, the invoice can be raised at the following times.

  • Before the provision of service
  • Within 30 days from the provision of the service

Necessary Information required for GST Invoice

There are 16 headings in total under which the information should be mentioned clearly:

  • Name, address and GSTIN of the supplier
  • Tax Invoice number
  • Date of Issue
  • Name, address and GSTIN of the recipient (if registered)
  • In case the recipient is not registered, and the value is more than Rs 50,000 the invoice should carry the following information –
  1. Name and address of the recipient
  2. Address of delivery
  3. State name and state code
  • HSN code of goods and accounting code of services
  • Description of the Goods and services
  • Quantity of goods and unit
  • Total value of supply of goods/services
  • Taxable value of supply after adjusting any discount
  • Applicable rate of GST
  • Amount of Tax
  • Place of supply along with the name of destination state or inter- state sales
  • If GST is payable on reverse charge basis
  • Signature of the supplier

Format for the Exports

Individuals who are creating the invoice for export should also mention that the GST has been paid on such exports.

Details related to the buyer

  • Name and address
  • Delivery address
  • Destination country
  • Number and date of application for removal of goods for exports

Bill of Supply

If an individual is dealing only with the exempted supplies or is availing the benefit of the composition scheme, then he needs to raise the bill of supply.

A bill of supply contains the following details:

  • Name, address and GSTIN of Supplier
  • A consecutive serial number in one or multiple series, containing alphabets or numerical or special characters such as hyphen, dash, slash and any combination which is unique for a financial year.
  • Date of the issue
  • Name, address and GSTIN or UIN
  • HSN code of goods and in case of service, SAC code
  • Description of goods and service of both
  • Value of goods and services considering discount
  • Digital signature of the supplier or his authorized representative.

 

Invoice under special Circumstances

 

Reverse charge basis – In case the provision is applicable, the recipient should raise an invoice on self. It should be raised on the consolidated basis for all payments for which the GST has been levied during the reverse charge.

 

Continuous supply of goods – In this case the successive payments are involved in which case the invoice should  before or at the time of the statement is issued.