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How invoicing is done under GST – All about the raising invoice under GST as per GST rules

By Paras Mehra

( 6.45K Views) July 11, 2017

How invoicing is done under GST Regime - very basic

1.0 Introduction

Every now and then, the invoicing has been always a matter of concern for a small or medium business. There is no specific reason but they just couldn’t get that right. Hence, in order to completely eliminate all the doubts, regarding the invoicing under GST, this article shall play a vital role. Let us proceed on to discuss the invoicing under GST.

2.0 What is a Tax invoice under GST?

A tax invoice is a valid instrument or document on which all the details of sales/supply is mentioned along with the appropriate details of buyers and tax paid to the government.

As per GST rules, tax invoice is very important to avail any benefit under GST like refund or credit of Input Tax Credit (ITC) etc.

3.0 When Tax invoice is issued in case of goods?

As per GST rules, the tax invoice is issued before or at the time of removal of goods. E.g., if you want to send 100 KG of sugar, then you shall raise the invoice before filing the or at the time of supply of sugar.

Further, in case of goods where movement of goods is not required, the invoice shall be issued at the time of delivery of goods or making available thereof to the recipient.

4.0 When tax invoice is issued in case of services?

The invoice in case of supplying of taxable services shall be issued within 30 days from the supply (completion) of the services. However, in case of any finance company or banking company, the time limit for raising invoice shall be increased to 45 days from the date of supply of services.

5.0 How many copies of invoices to be issued?

As per GST rules, a registered taxable person supplying goods shall issue three copies of invoice:

Original copy for Recipient
Duplicate copy for transporter
Triplicate copy for Supplier.

In case of services, only two copies are sufficient,

Original Copy for recipient
Duplicate copy for Supplier

Further, all the invoices should be serially numbered.

6.0 Invoice in case of advance payment Received

A registered taxable person shall on receipt of advance payment shall issue a receipt voucher instead of tax invoice. The receipt voucher should contain the following details:

Name, address and GSTIN of supplier
A Consecutive serial number not exceeding sixteen character.
Date of its issue
Amount of advance taken
Rate and amount of tax charged

Other details as may be prescribed.

7.0 Case where no supply is made against the advance payment

Where on receipt of advance by the registered taxable person, a receipt voucher has been issued however the supply has not been made and no tax invoice has been issued, in that case, the registered person may issue to the person who had made the payment, a refund voucher against such payment.

The refund voucher shall contain the following details:

Name, address and GSTIN of supplier
A Consecutive serial number not exceeding sixteen character.
Date of its issue
Amount of refund made
Rate of tax
Description of goods & services in respect of which refund is made.

Other details as may be prescribed.

8.0 Tax invoice in case of reverse charge by recipient

A registered person who is liable to pay tax under reverse charge shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both.

9.0 Tax invoice in case of construction or works contract services

Any supply of goods or services which is supplied for more than 3 months is known as continuous supply of services/goods. Generally, it happens in case of construction services, works contract services etc, petroleum products etc.

In case of continuous supply of goods, where successive statements of accounts or successive payments are involved, the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such payment is received.

In case of continuous supply of services, where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment.

However, where in case of services where due date of payment is not ascertainable, from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment.

Also, where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that event.

10.0 Case where supply ceases

In a case where the supply of services ceases under a contract before the completion of the supply, the invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply made before such cessation.

11.0 Tax invoice in case of supply of goods sent on approval

Where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued before or at the time of supply or six months from the date of removal, whichever is earlier.

12.0 Cases where tax issuance of tax invoice not required

A registered person may not issue a tax invoice if the value of the goods or services or both supplied is less than two hundred rupees.

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.

However, registered person may not issue a bill of supply if the value of the goods or services or both supplied is less than two hundred rupee.