Invoicing is a crucial aspect of any business, and with the implementation of GST (Goods and Services Tax), it has become even more critical. Under the GST regime, an invoice is a document that provides the details of the goods or services provided by a registered supplier to their customer. It is an essential document for maintaining proper records of transactions and claiming input tax credit. An invoice under GST has specific features to be kept in mind while raising one. There are eligibility criteria a business has to fulfill for them to raise an invoice under GST.
A GST invoice is a document issued by GST registered businesses to their customers at the time of supplying goods and services to them. It is a critical document that serves as a proof of the transaction. It is also required by the purchasers (in case they are a GST registered business) to claim the correct Input Tax Credit they are eligible to claim.
Issuing GST invoices for each transaction is a key step in ensuring GST Compliance. Using Busy’s GST Billing Solution will make the entire process simple for your business.
Any business in India that is registered under GST is required by law to provide GST compliant invoices whenever they supply taxable goods and services to their customers. This law is applicable to both B2B (Business to Business) as well as B2C (Business to Consumer) businesses.
Below is all the essential information that should be included in the GST invoice.
In the case of the supplier not being a registered GST business and the invoice being at the value of more than 50,000, then the contents of an invoice would include:
A sample for your reference is attached below:
GST Invoices are of a few different types, and each has a specific use case depending on the nature of the transaction that has occurred. The types of GST invoices are:
GST invoices are often revisable. All dealers are required to apply for provisional registration before getting the permanent registration certificate.
An image is attached for your reference:
It is applicable to all the invoices issued between the date of implementation of GST and the date a registration is issued. It is mandatory for a dealer to issue a revised invoice against all the already issued invoices. A revised invoice is required to be issued within one month of the issue date of a registration certificate.
Every law and provision has exceptions and in the issuing of invoices those special cases include banking, passenger transport. There is a relaxation on the format of the invoices to be issued by the supplier.
In case of goods three copies of invoices are to be issued and in the case of services two copies are to be issued.
Issuing GST Invoices are an important part of ensuring your business is GST compliant. They serve as a record of your business transactions, and failure to issue GST compliant invoices can lead to problems for your business. GST Invoices are applicable in both B2B as well as B2C transactions. Using a robust GST Invoicing Software like Busy will make it easy for you to issue and track your GST Invoices. This will help your business reputation over time, as your business will be able to maintain a healthy GST Compliance Rating.