GST tax invoice format in India

As a registered dealer under GST you are required to create GST invoices for each sale you make.
Complying with the rules of invoicing under GST in mandatory to avoid fines.

What is a GST invoice and who should issue one?

The GST system has replaced the invoices such as tax invoice, excise invoice and retail invoices with one general GST tax invoice that has to be issued for all sales of goods and services.

As a GST registered dealer, you are obligated to provide invoices that are compliant with GST rules and regulations for all supply of goods and services.

GST tax invoice sample

GST Invoice

Mandatory fields of a GST Invoice

From July 1st 2017, all tax invoices provided by GST registered suppliers need to contain the following fields:

  • Name, address and GSTIN of supplier;

  • Type of invoice - tax invoice, supplementary invoice or revised invoice;

  • Invoice date, series and number (just as before, a numeric series specific for a financial year);

  • Name, address and GSTIN (if registered) of invoice recipient;

  • HSN or SAC code for goods or services provided;

  • Description of goods or services provided;

  • Quantity and units of provided goods or services;

  • Total amount value of supply of goods or services;

  • Tax rate for every item;

  • Tax amount of CGST, SGST or IGST has to be shown in separate columns;

  • Place of supply and name of supplying state

  • Address of delivery (if it is different from the place of supply);

  • Statement describing if reverse charge is applicable.

  • Digital signature (or regular) of the supplier or an authorized person

Invoicing under GST - when should an invoice be issued?

In the case of Supply of goods:

Before or at the time of - removal of goods, if supply involves movement of goods;
Delivery of goods to the recipient, if supply does not require movement of goods.

In the case of Supply of services:

Within 30 days from the original date of supply;
*If a supplier is a bank or a financial institution, the invoice should be done within 45 days of the supply of service.

Note:If a person paying tax on reverse charge receives goods or services from an unregistered supplier, the receiver needs to issue an invoice on the date of receipt of the respective goods or services

How many copies of a tax invoice do you need to make?

In case of supply of goods, triplicate copies need to be made:

  • Original for recipient: issued to receiver

  • Duplicate for transporter: issued to the transporter. This is not mandatory if the supplier has an invoice reference number from the GST portal.

  • Triplicate for supplier: retained by the supplier

In the case of supply of services, duplicate copies need to be made:

  • Original for recipient: given to the receiver

  • Duplicate for supplier: kept by the supplier.

How should a tax Invoice for exports look like?

The export of goods or services is considered as a zero-rated supply. GST will not be levied on export of any kind of goods or services.

Additional, in export invoices, the following information regarding the recipient should be stated:

  • Name and address of recipient

  • Delivery address and country

  • Number and date of application for removal of goods for export

See the advantages of making export invoices with Sleek Bill

When should a tax invoice not be issued?

A registered person is not obligated to issue a tax invoice in two cases:

  • When the recipient is not a registered dealer AND

  • When the recipient does not require a tax invoice.

At the end of each day, a registered supplier has to issue a consolidated tax invoice for such supplies.

Note:In all other cases, the registered supplier is obligated to issue a tax invoice. By not issuing a tax invoice when mandatory, a supplier commits an offense under the GST Act and this offense will attract penalty.

GST Explained

GST, short for Goods and Services tax, is a new tax that will be imposed on the sale and purchase of goods and services in India. GST is meant to replace all taxes in India with a single unified tax applied to value addition instead of the total value of the product at each stage in the supply chain.

This method provides credit for the input tax paid on the purchase of goods and services, which can be offset with the tax to be paid on the supply of goods and services. As a result, this reduces the overall manufacturing cost, with the end customer paying less.

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With certain current taxes remaining, the following goods and services will be fully or partially exempted from the GST

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Free movement of goods: Business owners will be able to sell more in other states without having to worry about interstate transaction costs. With GST, the entry tax will be eliminated, which will save time and money spent.

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Currently, there are many indirect taxes that both the state and central governments are collecting on every purchase and sale.

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The GST will follow a similar model with the one before it

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GST will have a 4-tier tax structure

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One of the main reasons for GST being introduced in India is the tax burden that falls both on companies and consumers. With the current tax system, there are multiple taxes added at each stage of the supply chain, without taking credit for taxes paid at previous stages. As a result, the end cost of the product does not clearly show the actual cost of the product and how much tax was applied. This cascading structure is too complex and inefficient.

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For inter-state transactions, the Centre will levy Integrated GST (IGST), which is equal to the average of the CGST and SGST rates. After applying IGST, CGST and SGST credits received from purchases, the seller will then pay the remaining IGST on the added value.

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Businesses with turnover revenue of 20 lakhs and above will have to register and file for GST returns, with a threshold of 10 lakhs for businesses in the north east and hill states.

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A combination of CGST and SGST will be applied to the import of goods and services that come to India. Tax benefits and credits will be given to the state where the imported goods and services are consumed.

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