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GST Invoice Guide: Components, Format and Time to Issue

As per the GST Act, every registered taxpayer needs to issue the GST invoice for the supply of goods or services. GST Invoice acts as a proof of supply of goods or services, yet it is additionally a vital document for the recipient to avail Input Tax Credit (ITC).

In this we will discuss all the basics of GST invoice:

What is a GST Invoice?

A GST invoice is a document that a provider of goods or services issues to the recipient in a given exchange. It contains the following details:

(i) Item name and description

(ii) Amount of goods or services sold

(iii) Information of the provider and the buyer

(iv) Supply terms and conditions

(v) Supply date

(vi) Cost of good sold or services rendered

(vii) Discount

(viii) Taxable amount

(ix) GST Rate

(x) HSN Code for goods and SAC for services rendered

There is no particular recommended format for a tax invoice. Be that as it may, there are certain significant parts that help in structuring a tax invoice.

The significance of the tax invoice under GST has expanded because of the reconciliation system under the GST regime where the outward supplies of the supplier must match with inward supplies of the recipient. This helps the taxpayer to avail input tax credit under GST.

GST Invoice Format

All invoices issued under the GST ought to contain these 15 things:

(i) Name, address, and GSTIN of the provider.

(ii) Date of its issue.

(iii) Name, address, and GSTIN or UIN of the registered recipient

(iv) In case of the unregistered recipient address and name of the beneficiary and the location of conveyance, alongside the name of the state and its pin-code.

(v) HSN Code of goods

(vi) SAC in case of services.

(vii) Description of goods or services or both as the case may be.

(viii) Unique Quantity Code of items.

(ix) Value of supply of goods or services or both before GST.

(x) Value of supply of goods or services or both after GST.

(xi) Discounts if any.

(xii) GST rate

(xiii) Place of supply

(xiv) Address of delivery in case if the place of supply is different.

(xv) Signature or DSC of the provider or his representative.

Time to Issue

Here are certain conditions that help in determining the time to issue of invoice:

  1. Dispatch of the goods for delivery by the supplier or by his authorized representative.
  2. Collection of the goods by the recipient thereof or by his authorized representative.
  3. In case of continuous supply of goods, on or before the date of payment.
  4. In the case of general services, a tax invoice shall be issued within 30 days of the supply of services.
  5. In case of services rendered by the banks and NBFCs, the GST invoice shall be issued Within 45 days of supply of service.
  6. The GST invoice shall be issued before the end of the contract in case of termination of supply.

Invoice Issuing Manner

In the case of goods, the invoice must be issued in triplicate. Here:

(i) The first copy of the invoice is for the recipient,

(ii) the second copy is for the transporter and

(iii) the third copy is for the supplier

In the case of a supply of services, the tax invoice must be issued in duplicate.

(i) The first copy of the tax invoice is for the recipient

(ii) The second copy is for the supplier.