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All about GST Invoice and Notes

GST22/08/2021 Source: GST

 

GST Invoice

GST invoice is issued by a registered GST supplier to the buyer of goods and services. A GST invoice consists of the names of the parties involved as well as the details of goods or services including description, quantity, discount, terms of sale, etc. under supply of goods or service.

GST Invoice is issued by registered business on the sale of goods or supply of services to customers.

When to Issue GST Invoices

Invoice for

Type of supply

Period

Supply of Goods

Normal supply of Goods

GST Invoice will issue on/before the date of removal or delivery

Supply of Goods

Continuous Supply (eg contract base supply) of Goods

GST Invoice will issue on/before the date of issue of account statement/payment

Supply of Services

Normal supply of Services

GST Invoice will issue within 30 days of Supply of services

Supply of Services

Banks and NBFCS

GST Invoice will issue within 45 days of Supply of services

Useful of GST Invoice

  1. Claiming input tax credit(ITC): GST invoice will act as proof of GST paid, which will be use to claim the input tax credit.
  2. Proof of supply: When a GST Invoice is generated, it will act like proof that the supplier has supplied the goods to the buyer, and can demand payment against it.
  3. Time, Date and Place of supply: The GST Invoice represents the date, time and place of supply, which may act as a supporting document in case there is a misunderstanding in the future between the two parties.

Contents of GST invoice

The following must be are the mandatory fields-

  1. Supplier GSTIN
  2. Invoice number
  3. Invoice Date
  4. Shipping and billing address
  5. Customer GSTIN
  6. Place of supply
  7. HSN Code/SAC code
  8. Item details i.e. description, quantity (number), unit (meter, kg, etc.), total value
  9. Taxable value and discounts
  10. Rate and amount of taxes i.e. CGST/SGST/IGST
  11. Whether GST is payable on a reverse charge basis
  12. Signature of the supplier

How many copies of the GST Invoice should be issue

In case of supply of goods– 3 copies of the GST invoice will issue by the registered supplier of goods. Supplier shall prepare all the GST invoices in triplicate in case of a supply of goods. However, the individual shall mark the original copy as "Original GST Invoice" for recipient of goods and the duplicate copy should indicate "Duplicate GST Invoice" for transporter and the triplicate copy should indicate "Triplicate GST Invoice" for supplier of goods.

In case of supply of services– 2 copies of GST invoice will issue by the registered supplier of service. In case of supply of services, the supplier shall prepare the GST invoice as duplicate. The original copy should specify "Original GST Invoice" for recipient of services and the duplicate copy should specify "Duplicate GST Invoice" for supplier of service.

Minimum amount for which one can raise a GST Invoice

A tax invoice need not be issued when the value of the goods or services supplied is less than Rs 200 if –

  • The recipient is unregistered and
  • The recipient does not require an invoice, in case the recipient demands for the invoice, should be issued.

However, a consolidated GST invoice should be prepared at the end of each day for all such supplies for which the tax invoice is not issued in a day.

How to disclose GST Invoice in GSTR-1 Return

1. GST Invoices issued to registered buyers shall report as B2B Invoices supplied to registered person.

2. GST Invoices issued to unregistered buyers shall report as B2CS (Either Large or other) supply to unregistered person.

3. GST Invoice issued against export shall report as Exports Invoices (EXP) Invoices.

 

Note

Debit note(DN) is issued by the registered gst supplier when the amount payable by the buyer to seller increases in respect of supply of goods or service:

  1. GST Tax invoice has a lower taxable value than the amount that should have been charged 
  2. GST Tax invoice has a lower tax value than the amount that should have been charged

Credit note(CN) is issued by the seller when the value of gst invoice decreases in respect of supply of goods or service:

  1. Tax invoice has a higher taxable value than the amount that should have been charged
  2. Tax invoice has a higher tax value than the amount that should have been charged
  3. Buyer return the goods to the supplier
  4. Services are found to be deficient

How to disclose Debit and Credit Note in GSTR-1 Return

1. Debit note(DN) and Credit note(CN) issued to registered buyers shall report as Credit /Debit Notes Registered (CDNR) supplied to registered person.

2. Debit note(DN) and Credit note(CN) issued to unregistered buyers shall report as Credit /Debit Notes Unregistered (CDNUR) supply to unregistered person.

 

Bill of Supply

Bill of Supply is to be issued by a registered gst supplier in the following cases:

  1. Supply of exempted goods or services
  2. Supplier is paying tax under composition scheme

Similar to the GST invoice, a bill of supply need not be issued when the value of goods or services supplied is less than Rs. 200 unless the receiver insists for the bill. However, a consolidated bill of supply should be prepared at the end of the business day for all such supplies for which the bill of supply is not issued.