What should one know before issuing a GST complaint tax invoice
Almost a month ago, Rahul registered himself under GST. Since then, he had issued three tax invoices to his clients, only to hear back that the invoices were generated incorrectly.
To his knowledge, he had included details such as client name, address and the invoice amount, which he believed were enough.
He couldnt figure out what went wrong, so he decided to consultBaywiserto understand about tax invoices under GST regime.
Heres what Baywiser advised him about GST-compliant tax invoices…
What is a tax invoice
All the taxpayers registered under GST must issue a tax invoice for goods or services supplied by them.
If the recipient is unregistered and doesnt require the invoice, the seller may not issue the tax invoice.
For all such sales, he must issue a consolidated tax invoice at the end of each day.
What are the necessary details to be mentioned in a GST compliant tax invoice
1.) Name, address andGSTIN numberof the seller,
2.) Invoice Number (unique for a financial year) and date,
3.) If the recipient is registered Name, Address and GSTIN number of the recipient,
4.) If the recipient is unregistered AND the value of taxable supplies is 50,000 or more Name and address of the recipient, delivery address, state and code.
These details must be mentioned if the recipient explicitly requires them to specify on the invoice, even if the value of taxable supplies is less than Rs. 50,000.
5.) HSN code of goods or accounting code of services
HSN isnt required if turnover is less than Rs. 1.5 crores. Only two digits are needed if turnover is between Rs. 1.5 5 crores. 4 digits to be mentioned if turnover is more than Rs. 5 crores.
6.) Description of goods or services,
7.) Quantity and unit of goods (5 kg or 3 litres )
8.) Total value,
9.) Taxable value (after deducting discounts and rebates)
10.) Rate and amount of GST
11.) Place of supply and the state for interstate sales,
12.) Delivery address if it is different from the place of supply,
13.) Whether the tax is payable on reverse charge mechanism, and
14.) Signature of the authorised signatory
How will exporters issue tax invoice
If the seller is exporting the goods or services, he will also mention the following line on the invoice, apart from the details above –
supply meant for export/supply to SEZ unit or SEZ developer for authorised operationson payment of integrated tax.
or
supply meant for export/supply to SEZ unit or SEZ developer for authorised operationsunder bond or letter of undertaking without payment of integrated tax.
He must mention thecountry of destinationinstead of thestate.
How many copies of invoice must be issued
For selling goods, 3 copies of invoices must be issued
1.) Original for recipient,
2.) Duplicate for transporter, and
3.) Triplicate for supplier (self)
For supplying services, 2 copies of invoices must be issued
1.) Original for recipient and
2.) Duplicate for supplier
After consulting with Baywiser, Rahul began issuing the invoices correctly, winning the trust of customers as far as compliance goes. As a business owner or someone in charge of compliance, one must ensure invoices are GST-compliant.
We at Baywiser advise businesses on getting compliances in place be it GST or other tax related matters or accounting and secretarial compliances.
Reach us at[email protected]or on +919369364646 and well ensure that you can focus on your business while Baywiser handles the rest.
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