GST Registration
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Legal and Tax Benefits
GST (Goods and Services Tax) is more than a year old now and right from its inception we have seen a lot of changes and amendments in the law. Most of the taxpayers are familiar with GST Laws by now as the procedures have been much more streamlined. But still there are certain factors which require your consideration while dealing in GST.
A GST invoice is a bill or receipt that consists of the details of the goods or services provided by a seller or service provider to a customer. It lists the products or services along with the total amount due. The invoice allows you to check the prices of products or services before CGST and SGST are applied.
It also shows the tax amount charged on each product or service purchased from the seller or provider.
One of the main advantages of GST invoices is that they provide a single, centralized source of information for all transactions. This simplifies the tracking and management of taxes on each sale, ensuring timely tax payments. GST invoices eliminate the need for multiple invoices, making it easier to stay on top of tax deadlines.
Another key benefit is that GST invoices streamline the GST return filing process. Acting as a single source of transaction data, they reduce the chances of errors and help businesses file accurate and up-to-date returns.
GST invoices also reduce business costs. By consolidating information into one document, companies save time and money on paperwork and manual data entry. This efficiency helps lower expenses associated with preparing and filing GST returns, boosting overall profitability.
Additionally, GST invoices ensure compliance with tax laws. By clearly presenting transaction details, businesses can meet their tax obligations and avoid penalties for discrepancies, which could harm both finances and reputation.
GST invoice is required to be issued by a registered taxpayer. The taxable invoice will only entitle the purchaser or receiver to claim input tax credit (ITC). There is no specified or fixed format for the invoice, but certain prescribed information shall be mentioned on the face of the GST invoice.
Non-registered dealers or composite taxpayers are required to issue a Bill of Supply and are not eligible to issue GST invoices to their clients.
A Goods and Service Tax (GST) invoice shall clearly disclose the following:
Here are the due dates for issuing GST invoices -
Though it is always a good practice to issue a GST invoice for any amount, however as per the GST Act [Sec 31(3) (b)] read with rules, a tax invoice need not be issued when the value of the goods or services supplied is less than INR 200, if -
In case the recipient demands the invoice, the same should be issued irrespective of the amount involved.
GST law requires taxpayers to issue specified number of tax invoice copies. Lets have a look at number of invoices we have to issue
Below is the table explaining the number of invoices to be issued in a simplified manner
| In case of Supply of Goods | In case of Supply of Services | |
|---|---|---|
| Original invoice: | The original invoice is issued to the receiver. A buyer gets the first copy of the invoice, marked as ‘Original for Recipient’. | The original invoice is issued to the receiver. A buyer gets the first copy of the invoice, marked as ‘Original for Recipient’. |
| Duplicate copy: | The duplicate copy is for the transporter, and is marked as 'Duplicate for transporter'. If the supplier has Invoice reference number, then duplicate is not required.It is given to a supplier when he uploads a tax invoice issued by him in the GST portal. It is valid for 30 days from the date of upload of invoice. | The duplicate copy is for the supplier, and is marked as 'Duplicate for supplier'. |
| Triplicate copy: | This copy is retained by the supplier for his own record, and is marked as 'Triplicate for supplier'. | - |
Given below is a sample of the GST invoice -
As per Sec 31(3)(c) of CGST Act 2017, a registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed:
Thus, as per combined reading of GST Act with GST rules, Bill of Supply is to be issued by a registered supplier in the following cases:
As per Rule 36(2) of CGST rules, Input tax credit shall be availed by a registered person only if all the applicable particulars are contained in the said document.
But, if the said document does not contain all the specified particulars but contains
Input tax credit may be availed by such registered person.
Thus, if all required particulars are not present in GST invoice, then ITC (Input Tax Credit) availed on such invoice need to be reversed.
In order to claim an input tax credit, it is necessary to ensure that the GST invoice contains all the necessary details. While GST has made the indirect tax system uniform, it can be complex for laymen.
If you are also struggling with taxes, our experts are here to help you with GST return filing or have any GST-related queries. Book an online CA now!
In case the turnover exceeds Rs 1.5 cr, HSN code shall be mentioned on the GST tax invoice.
But, in the case of exporters there is no exemption and HSN / SAc code shall be mentioned irrespective of turnover threshold.
Yes, quantity in case of goods and unit or Unique Quantity Code thereof is required to be mentioned in case of GST invoice. Here, Unique Quantity Code refers to unit of measurement in simple terms. For example, Kgs, Dozens, units, bundles, etc.
All registered persons making the supply of goods or services or both in the course of inter-State trade or commerce need to specify the place of supply along with the name of the State in the tax invoice.
Yes, it is mandatory to maintain the invoice serial number. You can change the format by submitting a written notification to the GST department officer, along with the reasons for the change.
Yes, you can sign a GST invoice digitally using your digital signature certificate or DSC.
