GST Invoice Format And Rules

GST Invoice is the main document that contains evidence of delivery and is vital to the use of input tax credits. It not only contains documentation of the availability of goods or services, but is also a necessary record for the purchaser to make use of the Input Tax Credit (ITC). A licenced person cannot use an input tax credit until he has a tax invoice or a debit note in his hands. The GST is payable at the time of sale. Invoice is a significant measure of supply period.

To make it simple, the time of delivery of goods or services shall be the date of issue of the invoice or receipt of payment, whichever is earlier. However, a special method for the paying of taxes has been prescribed for registered individuals (other than dealers of composition) who supply products. Such groups of individuals (suppliers of products other than composition dealers) need to pay GST only at the point of issuance of the invoice, unaware of whether they collect payment.

When is a GST invoice issued?

If you are a GST registered business, you need to provide GST-compliant invoices to your clients for sale of goods and/or services. Similarly, your GST registered vendors will provide GST-compliant purchase invoices to you.

The timeline to issue the invoice would depend on the type of the supply, whether it is a supply of goods or services. Before or at the time of the removal of goods (where the supply includes the transportation of goods) or the distribution or rendering available to the purchaser, the licenced individual who supplies taxable goods shall issue a tax invoice containing the description, quantity and value of the goods, the tax paid thereon and such other information as is prescribed in the Invoice Guidelines.

Format and Content of a GST Invoice

There is no prescribed format for a GST Invoice, however, there is a list of mandatory information to be contained in it:

(a) Name, address and GSTIN of the supplier

(b) A consecutive serial number, in one or multiple series, containing alphabets, numerals, special characters like hyphen/dash/slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year

(c) Date of its issue

(d) Name, address and GSTIN or UIN, if registered, of the recipient

(e) Name and address of the recipient and the address of delivery, along with the name of state and its code, if such recipient is unregistered and where the value of taxable supply is fifty thousand rupees or more

(f) HSN code of goods or accounting code of services 

(g) Description of goods or services 

(h) Quantity in case of goods and unit or unique quantity code thereof 

(i) Total value of supply of goods or services or both 

(j) Taxable value of supply of goods or services or both taking into account discount or abatement, if any

(k) Rate of tax (central tax, state tax, integrated tax, union territory tax or cess)

(l) Amount of tax charged in respect of taxable goods or services (central tax, state tax, integrated tax, union territory tax or cess)

(m) Place of supply along with the name of state, in case of a supply in the course of inter-state trade or commerce

(n) Address of delivery where the same is different from the place of supply 

(o) Whether the tax is payable on reverse charge basis 

(p) Signature or digital signature of the supplier or his authorized representative

What is a Bill of Supply?

A Bill of Supply is issued by the supplier to the buyer. It can be considered an alternative for a GST Invoice. It should contain the following information:

(a) Name, address and GSTIN of the supplier

(b) A consecutive serial number, in one or multiple series, containing alphabets, numerals, special characters like hyphen/dash/slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year

(c) Date of its issue

(d) Name, address and GSTIN or UIN, if registered, of the recipient

(e) HSN code of goods or accounting code of services

(f) Description of goods or services

(g) Total value of supply of goods or services or both

(h) Signature or digital signature of the supplier or his authorized representative sued based on the distance remaining to be traveled.

GST Invoices for Services

A registered individual rendering taxable services shall, before or after the service has been provided, but within a specified time, issue a tax invoice containing the definition, amount, tax paid thereon and any other details as is prescribed in the Invoice Laws.

In the case of goods, an invoice must be given before or at the time of sale. However, in the case of services, the invoice must be given before or after the availability of services. If the invoice is given after the delivery of the service, it must be rendered within a specified duration of 30 days from the date of delivery of the service, in compliance with the laws of the invoice.

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