The provisions of Section 31 of the CGST Act, 2017 prescribes for the issue of invoice or a bill of supply for every supply of goods or services. There are different rules and provisions under GST in which a tax invoice needs to be issued. Normally, a person selling goods or services issues tax invoice. However, there are also circumstances, where the buyer needs to issue an invoice. This happens when the buyer is registered under GST and the seller is not registered. Then the buyer must issue a tax invoice and payment voucher. In this article, we will see simple GST invoice format in India and governing rules.
Contents of Simple GST Invoice format in India
A tax invoice is an important document in the GST, the importance of tax invoice is as follows:
- It is treated as evidence of the supply of goods or services,
- A registered person can avail Input Tax Credit (ITC) only if he has a tax invoice or a debit note.
- Since, GST is chargeable at the time of supply. An invoice can be used to determine the time of supply.
There is also limit prescribed by the Act, as to when a person should issue the invoice or bill of supply. If the value of sales is less than or equal to Rs. 200, then there is no need to issue the invoice or bill of supply.
There is no format prescribed for an invoice. However, simple GST invoice format in India would need the following elements in it:
1. Date when such invoice was raised
2. Following details of the recipient must be there
- GSTIN (if registered)
3. Following details of the supplier must be there
- GSTIN of the supplier
4. The number of invoice or bill of supply
5. The address of delivery (if different from the address of receiver)
7. The invoice must have a description of goods or services
8. Quantity of goods supplied (in units or volume)
9. The total value of the sale
10. Amount and Rate of tax charged i.e. CGST/SGST/UTGST/IGST should be mentioned on the invoice
11. The invoice must be duly signed
Time Limit for Issue of Invoice [Section 31]
There are two scenarios to determine the time limit for the issue of the invoice.
- If goods are to be moved or transported for delivery to the recipient. Then the date of movement or an earlier date shall be taken as the time of supply.
- If goods are not required to be transported to make available to the recipient, then the date of sale shall be considered as the time of supply of goods.
In case of Continuous Supply of Goods
If there is a system in place where payment is being made or a statement of accounts is being issued. In this case, the date of issue of a tax invoice shall be the date before or at the time each such payment is received or statement of accounts is issued.
Again, you can follow simple GST invoice format in India and there is no specification provided.
The tax invoice shall be issued before or after the supply of service but within 30 days of supply of such service.
The responsibility of issuing a tax invoice also lies in person registered as insurer, banker, financial institution or NBFCs. As in the case of normal services, these institutions also need to issue invoices before or after completion of the supply of service but within the prescribed period. The time limit is 45 days from the date of completion of the supply of service.
In case of Continuous Supply of Service
|Where||the invoice shall be issued|
|The due date of payment can be known from the contract||on or before the due date of payment|
|The due date of payment cannot be known from the contract||before or at the time when the supplier of service receives the payment|
|The payment is linked to the completion of an event||on or before the date of completion of that event|
Similar to goods, you can follow simple GST invoice format in India and there is no specification provided.
Simple GST invoice format in India
Please see a sample format that may be used for issuing GST invoices.
FREQUENTLY ASKED QUESTIONS(FAQs)
1. How many copies of an invoice must be issued in case of a supply of goods?
In case of the supply of goods, three copies of an invoice are made one for the recipient, one for transporter and one for the supplier. You can follow simple GST invoice format in India being used for the said purposes
2. How many copies of an invoice must be issued in case of a supply of services?
In case of a supply of services, two copies of an invoice are issued; one for a recipient of services and another for the supplier of services.
3. What is the amount when I do not need to issue to tax invoice?
You do not need to issue an invoice when the amount of goods or services supplies is less than Rs. 200.
4. Do I need to issue an advance receipt voucher in case of receipt of advance?
Yes, if you have received the advance payment then you must issue an advance receipt voucher for the same.
5. Is there any mandatory format of an invoice prescribed by the GST department?
No, there is no mandatory format for the invoice. However, some fields must be mentioned in an invoice. You can follow simple GST invoice format in India being used for the said purposes
6. I have obtained registration under GST, and is into the business of selling exempted goods, can I issue a bill of supply?
Yes, you can. Any seller who is registered under GST and is making the sale of exempted goods/services can issue a bill of supply. Similar provisions would be applicable if you were registered under the composition scheme.
7. Is the tax invoice necessary for availing Input Tax Credit?
In GST only a registered person can avail of the Input Tax Credit (ITC), and it is required to have a tax invoice or debit note.
8. What is the format for the invoice number?
It should be a consecutive serial number made up of a combination of alphabets, numerals or special characters such as -, / and should be unique for a financial year. You can follow simple GST invoice format in India being used for the said purposes
9. Is there any need to mention HSN code on an invoice?
As per the provisions of the GST Act, every invoice must carry an HSN Code. HSN Codes are necessary as it describes the nature of supply made.
10. What should I mention in the delivery address if the place of supply is different from the place of the supplier?
You will have to mention the details of both places on the invoice.
11. Can I issue an invoice without mentioning the rate of GST and the amount of GST Charged?
No, any invoice issued without mentioning rate and amount of tax charged is not considered a valid invoice. Also, Input Tax Credit is not available in such a case.
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