GST Invoicing
Easily setup a sole proprietorship with registrations, LEDGERS and business bank account.
Benefits
- Fewer legal formalities than LLP.
- Associated with the GST and income tax departments.
- Full control over the business for the sole proprietor.
- No separate business tax filings.
- Easy to disassemble.
Offers and discounts
Save 18% with GST Registration
Get GST e-invoice with Input Tax Credit
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Here’s What You Must Know About the GST Invoice
GST invoicing, also called GST billing, is a process of issuing bills or receipts for the supply of goods and services under the Goods and Services Tax (GST) system in India. Your sales and purchases are recorded in a GST invoice. Thus, it provides a standard format with details required for claiming an ITC.
Manual invoice creation works for small businesses with limited transactions, but it introduces errors. Larger businesses automate calculations and ensure data accuracy via GST invoicing software. This software also helps them generate other reports for GST.
Invoicing Rules Under GST
According to the invoicing rules under GST, your invoice should include the following fields:
- Your Business Name, Address, and GSTIN
- Customer Name, Address and GSTIN (if registered)
- Invoice Number (unique for each invoice)
- Date of Issue
- Description of Goods or Services Supplied
- Name and code of the state (if the recipient is not registered)
- HSN/SAC Code (Harmonized System Nomenclature/Services Accounting Code) for the supplied items
- Quantity of Goods or Services
- Address of delivery (if the recipient is not registered)
- Unit Price (excluding GST)
- Rate of GST (5%, 12%, 18%, or 28%) and other taxes (IGST/CGST/SGST)
- Taxable Value (quantity x unit price)
- Total GST Amount (taxable value x GST rate)
- Total Invoice Value (taxable value + total GST amount)
- Payment Terms
- Name and address of the recipient (if the recipient is not registered)
- Shipping and billing address
- Signature of the supplier
- Place of supply
You will get a confirmation message upon a successful GST return filing and you can download a formal receipt for your records.
How a Tax Consultant Helps with GST Invoice Bill
- Awareness of current GST rules.
- Identification of errors in your GST invoice Bill
- Guidance on complex transaction
- Streamlining Workflow
- Integration with Accounting Systems
- Input Tax Credit (ITC) Optimisation
- Efficiency in handling tax complications
Smooth & Error-Free GST Invoice Generation & Maintenance Is Now Possible
Importance of Invoice Under GST
An invoice under GST is more than just a bill because it lets you follow the GST tax regulations. The importance of invoice under GST is as follows:
- Helps maintain transparency and trust with the government, customers and your partners.
- Enhances business reputation for maintaining transparency.
- Provides accuracy and compliance for minimal penalties.
- Brings an opportunity for Input Tax Credit (ITC) claiming on eligible purchases.
- Helps in record keeping and audit which will help you follow other acts.
- Simplifies tax administration and revenue collection for the government.
Final Words
GST invoices help you keep accurate records, maintain transparency and stick to the tax regulations. You may also claim an Input Tax Credit and minimize the risk of penalties. Smaller businesses can opt for manual invoicing but they might need a trustworthy tax consultant along with a GST invoicing software.
FAQs
What Are the Due Dates for Issuing a GST Invoice?
GST invoice on or before the delivery of normal goods. Goods that are supplied continuously require a GST invoice before the payment. In the case of services, an invoice should be generated within 30 days of supply (for normal services) and 45 days (for banking and non-banking financial corporations).
What Does a GST Invoice Format Contain?
A GST invoice format contains fields such as details of the company/supplier, recipient’s details, details of the goods and services (quantity, unit, price per unit, GST, discount, amount and name), terms and conditions and total amount.
When Can a Supplier Grant Relaxation on the GST Invoice?
A supplier can grant relaxation on GST invoices for passenger transport and banking sectors.
Can A GST Invoice Be Signed Digitally?
Yes, a GST invoice can be signed digitally using a digital signature.
Should I Maintain Copies of an Invoice under GST?
Yes, maintain 2 copies of the invoice under GST for goods supplied and 3 copies for the services provided.
