With the implementation of the new Goods and Services Tax (GST) in India, it is essential to make a few changes in the functioning of your business smoothly. Firstly, GST is an indirect tax that is levied on the supply of goods and services from 1st July 2017. The Government introduced the system to replace the numerous indirect taxes with a single GST applicable throughout the country. So, GST entered the business world in the form of a comprehensive indirect tax levied on the concept of value addition. It brought a change from the old cascading effect of taxes. Therefore, it is important to keep in mind the GST invoice format.
Now, the introduction of GST, brought along some changes in the documents and rules to be followed for businesses. The enterprises operating in India have to adhere to the new set of rules under the GST. Be it GST registration or filing of returns under GST. Naturally, the documentation of businesses has also gone a step ahead with an E-way bill and a GST Invoice Format. Here are all the essential details of the new Invoice format under GST law.
What is the GST invoice?
You know the invoice is proof of the sale of the goods or services by any business to a customer. It is an essential document in the collection of payment for the transaction. An invoice contains all crucial details regarding the goods and services sold, including the product or service name, price, quantity, taxes, and taxes applicable to the transaction.
A GST Invoice Format is the new format of the essential business instrument, invoice as per the new GST rules applicable. There is no template or format, as clearly mentioned by the GOI. But, yes, the Government has laid out specific regulations and requirements in the new invoice.
Who should issue a GST invoice?
According to the GST law, all registered taxpayers should follow the GST Invoice Format for any sale of goods or services. The business world is a dynamic one with numerous statutes and technologies entering the market. So, as a sound business policy, any new business law in the operating country should be duly integrated with the business.
When your enterprise is a GST registered one, it becomes necessary to raise GST-compliant invoices for your clients. It is equally important to receive GST –compliant purchase invoices to enjoy the benefits under the GST structure. Unless you have a GST compliant invoice, you will not be able to avail of the Input Tax Credit under the GST. Non-compliance with the GST Invoice Format could also invite fines and restrictions on the functioning of your enterprise.
Rules to know before preparing a GST invoice
Specific basic rules underline the new Invoice format under GST law:
- All GST registered businesses should follow the GST Invoice Format
- The time to raise an invoice depends on whether the supply concerns goods or services.
- The Government has exempted bills below the value of 200INR
- Some relaxations on the GST Invoice Formathave been provided in few cases like passenger transport, banking, etc.
- GST Invoice is prepared in triplicate or three copies for the supply of goods- ‘Original for the recipient,’ Duplicate for Transporter,’ and ‘Triplicate for Supplier.’
- GST Invoice, in case of services, is prepared in duplicate as ‘Original for the recipient’ and ‘duplicate for the supplier.
- The Government has specified to include all the mandatory fields in the GST Invoice Format, mentioned in the GST revised rule 1
To get in further clarity on laws and regulations applicable to creating customized invoices for your business, you could consult GST experts at Imprezz.in. to prepare an easy and ready to use GST invoice format for your business.
Compulsory fields in the invoice as specified by the Government
There is no GST Invoice Format prescribed by the Government, but specific fields are mandatory in it. The Compulsory fields to be included in a GST Invoice Format as per Rule 1 of the GST Revised Rules are:
- Name, address, and GST number of the supplier
- Serial number that is consecutive and unique for the particular financial year
- Issue Date
- Description of the product or service
- HSN Code for goods or Accounting Code for services
- Quantity of products and Unique Quantity Code
- Name and address of the recipient and delivery address, including the name of State and code, for an unregistered recipient and value of goods, is INR 50,000 or more.
- Total of the total value of the goods or services
- Taxation rate under CGST, SGST, IGST, and UTGST
- Amount of the tax chargeable under GST
- Signature or digital signature of the supplier
Have a look at the GST format being used in Imprezz:
The best way to ensure that your GST Invoice Format includes all the mandatory fields is to let financial experts do the work on your behalf. Professionals at imprezz.in will help create a customized invoice format in compliance with all GST rules, where you can raise an invoice with a simple click.
The GST invoice format
As the GOI has not issued any strict GST Invoice Format, an entity can create a suitable invoice format in compliance with the mandatory rules stated in the GST law. You could use MS Excel or MS Word to create an invoice. MS Excel is excellent in calculations with its formulas, while MS Word has a broad range of functions that enables you to customize your invoice.
However, there are certain situations that you could face while creating customized invoices with MS Word or Excel. Both the tools will require extra time and effort in terms of preparation and mailing the invoice. Further, you are unable to access the invoice from anywhere as they exist in a particular system. What about the odds of losing data stored in a device? All these shortcomings call for a need to create an ultimate solution concerning the GST Invoice Format.
You could take the help of the expert financial services from companies like www.imprezz.in, a pioneer in the field, to help you customize the appropriate format for your business. The entirely professional financial services could help you design and update a customized GST Invoice Format, which enables you to generate GST ready invoices anytime, anywhere, and in a few minutes.
Other Types of GST invoices recognized by the GST law
The other types of invoices recognized by the GST law, applicable according to the case are:
- A bill of supply
- Aggregate Invoice
- Debit Note
- Credit Note
Businesses should be sure about which type of invoice to raise according to the nature of business and transaction. Why risk your business credentials with wrong invoices? Instead, get in touch with firstname.lastname@example.org so that the GST experts in the Company could help you take the load of preparing and updating the GST compliance invoice format off your shoulder.
GST Invoice Format under Special circumstances
Preparation of invoices under certain particular conditions, specified by the GST rules is as under:
- Invoice Under Reverse Charge Basis: In case of a reverse charge basis, the recipient has to raise an invoice on self. A payment voucher also needs to be issued at the time of payment.
- Invoice in Continuous Supply of Goods: In this case of the ongoing supply of goods, there occurs an issue of successive statements or consecutive payments. You should raise the invoice either before or at the time of the issue of each report or fee, as the case may be.
- Invoice in Case of Continuous Supply of Services: When it comes to the continuous supply of service, then raise the invoice according to the case. You can create an invoice before or on the due date of payment, completion of an event, or at the time of payment, as the case may be.
- Invoice in case of exports: At the time of export of goods or services, the GST Invoice Format includes an endorsement stating it as a supply meant for shipping on payment of integrated GST or without the amount of integrated GST, under a letter of undertaking or a Bond.
- Transportation of knocked or semi-knocked condition goods: In case of transporting goods in a knocked or semi-knocked condition, one has to raise an invoice the 1st time followed by delivery challan for each subsequent delivery. Each consignment should contain copies of certified invoice copy and delivery challan. The original invoice should be sent in the last shipment.
- Transportation of goods without an invoice: It is permissible in some instances for the consignor to issue a delivery challan instead of an invoice. The exempted cases include certain cases involving the supply of liquid gas, job work, and goods removed for any other reason apart from the supply.
For smooth delivery of goods and services in exceptional cases or under unusual circumstances, get further details about the GST Invoice Format from Imprezz.in so that your business could provide unhindered and delivery of goods and services on schedule to clients.
At Imprezz.in, you can create invoices under GST conveniently with the customized format designed exclusively for your business needs. With sheer commitment and expertise, the Company offers flexibility and ease of operating your invoice system from anywhere through cloud technology. The Company provides built-in data fields in compliance with GST rules and enables you to import your invoice formats and details for mapping. It offers full customization the GST Invoice Format with fonts, colors as well as your company logo. GST Invoice Format tailor-made by the financial experts at Imprezz.in provides the combination of the latest technology in addition to compliance with the new GST rules for your business.
You have a look at the easy tutorial we have created to help you create invoices here.