There are plenty of new rules and regulations to follow when it comes to invoicing as India is preparing to make the transition to GST. The government has specified the tax elements that are mandatory for each invoice, and business owners across India need to update their invoicing processes.
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There are Two Types of Invoices in the GST Regime:
Tax Invoice
When a registered dealer supplies taxable goods or services, a tax invoice is issued. Claiming an input tax credit is mandatory.
Supply Bill
A supply bill is issued when a registered dealer supplies goods or services exempt from GST, or for any sale where the supplier is registered under the composition scheme.
This is what a sample tax invoice will look like under the GST regime, based on the rules prescribed by the government:
- Type of invoice: The invoice type shows whether the document issued is a tax invoice, a debit note, or a credit note.
- Supplier’s name, address, and GSTIN: The supplier’s name, address, and GSTIN are critical to matching the outward supply to the inward supply of your customers on the GSTN portal.
- Recipient’s name, address and GSTIN: The recipient’s name, address, and GSTIN have supplier information, the recipient details are used to match and reconcile transactions.
- UIN: UIN is assigned to United Nations agencies, foreign country consulates or embassies, and some others.
- Destination state name: The destination state name involves invoices for transactions between states that must specify the destination state.
- HSN or SAC code: HSN or SAC code includes the HSN code if you are selling products (unless the annual turnover is less than Rs. 1.5 crores).
- Tax rates: Tax rates for CGST, SGST, and IGST together with the corresponding tax amounts must be shown in separate columns.
- Reverse charge declaration: The reverse charge declaration invoice specifies whether the transaction is subject to a reverse charge or not.
- Signature: Supplier’s signatures or other approved personnel must either sign in a physical or digital form.
If the Recipient is not registered under the GST regime, and the supply value exceeds Rs.50,000, the invoice should include the following details:
- Name and address of the consignee
- Shipping address
- The name and the state code
When can you Issue Tax Invoices?
Goods Supply
If the supply includes the movement of finished goods from one location to another, then the invoice shall be provided at or before the transfer time. So if a dealer is purchasing the supplier’s ‘writing pens’, the supplier must submit an invoice at or before the time the pens leave the warehouse. If the supply does not require the transfer of finished goods, when the goods are delivered to the recipient, the supplier can issue the invoice.
Supply of Services
In most cases, the tax invoice is issued within 30 days from the date of delivery. One must be aware of GST’s latest news to stay updated about the issuing of tax invoices.
Number of Copies that Tax Invoice includes:
- The original invoice is given to the recipient and marked as ‘unique’ for the recipient.
- A duplicate copy is given to the freight forwarder and is labelled as ‘Transporter Duplicate’. The transporter must display this duplicate copy if they are being asked for evidence unless the manufacturer has received a reference number for the invoice.
- The supplier retains a triplicate copy for its use and is marked as ‘supplier triplicate’.
How to Receive Issued Tax Invoices?
When an invoice is already issued, but there are changes to be made to the product’s taxable value or the tax amount, one of the following must be given:
- Supplementary Invoice/Debit note – If there is an increase in the price of an item that has already been shipped, the retailer will send a debit note to the recipient. The debit note must be given within 30 days of revising that amount.
- Credit note – Similarly, if the price falls, the manufacturer will provide the recipient with a credit note. The credit note must be issued on or before the next financial year’s 30th September or before the filing of the annual GST return, whichever is earlier.
How to Create a GST Invoice format in Excel on your PC?
Below is the step-by-step procedure on how to create GST Invoice format in Excel:
- Click on the ‘File’ tab to open Microsoft Excel and then select ‘New’ from the dropdown.
- Click on the ‘Display’ tab to delete the gridlines and to prepare the invoice.
- Tap on the ‘Upload’ tab after you have opened the blank worksheet and add the company logo to the sheet. Place the document header as a “Tax Invoice”.
- The next step after you have put the company logo and document heading is to enter your company details such as company name, address, zip code, and GSTIN.
- The next section in the invoice is the section bill that contains your customer’s details. Write a statement just below your business details and enter customer information such as; customer company name, address, zip code, GSTIN / UIN.
- Add further information such as the purchase order number if any, date of invoice, invoice number, and due date of invoice.
- Then add the details section of goods or services which includes details of the goods/service, price, quantity, a discount percentage if any, the tax applied if any.
- Fill in your bank details, company PAN, and space for your digital signatures toward the end of the invoice.
Why Choose Khatabook?
Khatabook is a mobile app that helps small-scale shopkeepers and Indian Kirana store owners to manage their bookings. This app helps the shopkeeper to track the money they owe through a digital ledger.
Features of this app:
- This app sends free SMS updates to the customers for every transaction.
- This app has automatic and secure online backup systems in place.
- This app allows you to create Personal Khata to manage your lending.
- This app sends your customers WhatsApp payment reminders.
- You can manage multiple shops with a single click.
- This app allows you to download your customer’s PDF report.
The Khatabook application helps you manage your money and provides a range of features.
You can track any transaction anytime and anywhere.
