Everything you wanted to know about GST Invoice
Goods and Services Tax was conceived in the year 2017 with the intention of simplifying the taxation system in the country. In other words, it has subsumed the indirect taxes in the country. The indirect taxes like state VAT, service charge, etc is subsumed under GST. With the onset of GST, the taxation system has transformed from the source-based taxation system to the destination-based system.
The GST transaction validation happens by a GST invoice. It is a document on the basis of which the seller demands payment from the customer. Further, the types of GST invoice range from delivery challan, credit note, debit note, payment voucher, receipt voucher, bill of supply, etc.
In this blog, I will take you through the process of creation and sending of GST Invoice.
1. The minimum transaction limit for GST
It is mandatory for any business to issue an invoice if the transaction amount is greater than Rs. 200. If the transaction amount is less than Rs. 200 and the recipient is unregistered, it is not mandatory to issue an invoice. However, if the customer demands an invoice, the onus lies on the seller to provide the same.
2. Components of a GST Invoice form
- Customer’s name
- Shipping and Billing address
- Place of supply
- Customer’s and seller’s GSTIN
- Shipping and Billing address
- Invoice number and date
- Item description: Unit, Price
- GST split up: CGST and IGST or SGST or UTGST
- HSN Cod
3. No: of copies of the invoice needed
(a) For Sevices: Original copy remains with the receiver and duplicate copy remains with the supplier.
(b) For Goods: Original copy remains with the receiver and duplicate copy remains with the transporter. On the other hand, a triplicate copy remains with the supplier.
4. The time limit for issue of the invoice
(a) For General Services: Invoice issue within 30 days of supply of services
(b) For Services involving Banks and NBFCs: Invoice issue within 45 days of supply of services
(c) Normal Goods delivery: On or before the date of delivery
(d) Continuous Supply of Goods: On or before making payment
5. How to personalize the invoice?
The GST invoice is personalized using one’s company logo.
6. Types of GST invoices
(a) Delivery Challan: It is issued for transmitting goods from one place to another, irrespective of its sales.
(b) Credit note and Debit note: A credit note is issued when there is an increase in the original taxable amount while a debit note is issued when there is a decrease in the original taxable amount.
(c) Payment voucher: A payment voucher is issued by sellers when there is an advance payment for the goods or services involved.
(d) Receipt voucher: A receipt voucher is issued by sellers when there is a reverse charge applicable to the transaction.
(e) Bill of Supply: Bill of Supply is issued by sellers when GST is non-applicable on exempted goods, upon goods export or when the seller is covered under the composition scheme.
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