February 23, 2023

Invoicing Under GST: Key Points

A GST invoice is a statement or receipt for goods or services delivered to a customer by a merchant or service provider. Together with the total sum payable, it precisely details the goods and services. Before CGST and SGST are applied, the goods or service prices can be found on a GST invoice.

The taxes associated with each good or service that a customer acquires from a vendor or provider are also shown on a GST invoicing bill.

Prescribed GST Bill Formats

According to Section 2(66) of the Central Goods and Services Tax Act of 2017, Section 31 must be consulted in order to comprehend the precise style of a tax invoice. Despite the fact that Section 31 provides a fundamental framework for GST invoice types, it is not exhaustive.

However, Section 31 does specify the conditions or data that must be included in such an invoice in order for it to be recognized as a valid GST document. Moreover, such an invoice can be both manual and electronic.

What should a GST Invoice Bill Include?

Such a bill must include the following information: This invoice must be issued by an input distributor. all additional invoices and bills. any previous modifications made to the supplier's invoice.

1. A GST tax invoice must also include the information below in addition to these sections:

2. Name, address, and GSTIN of the vendor issuing a GST invoice

3. Date of publication.

4. a distinct serial number with no more than 16 digits.

5. This bill should also include the name, GSTIN, and address of the receiving party in the case of registered beneficiaries.

6. a thorough explanation of all the products or services offered, including the HSN code.

7. Amount of any relevant discounts for these taxes.

8. Tax tally.

Issuing a GST Invoice: When should it be done?

In some circumstances, it might be challenging to generate a GST invoice as soon as goods are delivered or services are provided. The Indian government has established a standard time limit for suppliers to adhere to in order to ease the situation.

On Goods (Normal)

Such an invoice must be created by the goods providers on or before the date the relevant articles are removed. According to Section 2 (96) of the CGST Act of 2017, "removal of goods" can refer to either "goods despatched for delivery to the recipient" or "goods removed." goods that the recipient or a representative acting on their behalf picks up from the source.

On Goods (Continuous Supply)

The supplier may issue a GST invoice on or before the account statement is generated or payment is received if the invoice relates to a receiver with whom it maintains a consistent order of business.

On Services

A GST invoice bill for services rendered must be issued within 30 days of the relevant services being rendered.

On Banks

The limit for submitting a GST receipt in the case of financial services provided by banks and other financial institutions is 45 days as opposed to 30 days as it is for all other services.

Types of Invoices

Bill Of Supply

A bill of supply is quite similar to a GST invoice, with the exception that it does not include any tax information because the seller cannot charge the buyer GST.

Aggregate Invoice

The vendor may issue an aggregate or bulk invoice for the several invoices each day if the combined worth of them is less than Rs. 200 and the customer is not registered.

Debit and Credit Note

When the amount the customer owes the seller increases, the seller issues a debit note. When the value of the bills decreases, the seller issues a credit note.


GST Registration: Limit, Compulsory Registration, When Not Required
Accumulation of GST Credit on Exports through Merchant Exporters