Essential Information to be included in GST Invoice

An invoice in general terms a document issued by a seller to a buyer. It details information related to the item sold, such as the details of both parties, lists of all the products, and describes and identifies the quantity of the items sold. Busy Accounting Software can be really helpful in generating invoices.

Information required in a GST invoice 

Rule number 46 of the GST rules oversees the contents of an invoice which must be the following:

• The supplier’s name, address and GSTIN 

• The number of the tax invoice, which is 16 characters, which is generated consecutively, is unique for each financial year 

• Date of issue 

• The name, address and GSTIN in the case of a registered buyer

• In case of the value being 50,000 and the buyer is unregistered, the invoice must have the following:

• Name and address of the recipient 

• The delivery address 

• State name and state code 

• HSN codes for goods and service accounting codes in case of services 

• The description of goods and services rendered 

• Quantity of goods (number) and unit in UQC (KG, meter, etc.)

• The total value of the supply of goods and services 

• The discounted taxable value of the supply 

• Applicable rates of GST, including CGST, SGST, IGST, UTGST and cess, should be mentioned as well 

• The demarcation of the amount of tax into CGST, SGST, IGST, UTGST and cess

• For the purposes of interstate sale, the place of supply and the name of the state should also be mentioned 

• If the delivery address is different from the place of supply, that should be enumerated as well

• Whether GST is to be paid on a reverse charge basis

• Signature of the supplier or an authorized representative 

Endorsements on Invoices under GST for exports 

Certain GST invoices require endorsement or mention on the invoice. Exports of goods and services, as well as supplies to SEZ units or developers for authorized operations, under the following conditions:

• With tax payment 

• Without tax payment 

Two types of endorsements based on the above conditions are:

• On payment of integrated tax, supply intended for export/supply to SEZ unit or SEZ developer for authorized operations

• Supply for export/supply to SEZ unit or SEZ developer for approved operations under bond or letter of undertaking without payment of integrated tax

Format of a GST invoice 

A typical invoice with all the information enclosed will look like this:

** GST Council may notify about:

• the number of digits of HSN code for goods or the accounting code for services and the various classes of registered persons should be mentioned

• the class of registered persons who will not be required to mention the codes

Reasons for not issuing a tax invoice 

A registered person is not obligated to raise an invoice if :

• The buyer or recipient is not a registered 

• The recipient does not need such an invoice 

Raising two copies of an invoice 

Under the GST law, businesses are obligated to keep copies of all their invoices, and if the invoice is for the supply of goods, then there should be three copies of it which should be marked as:

• Original copy for the recipient 

• Duplicate copy to be used by the transporter 

• Triplicate copy to be used by the supplier 

In the case of a supply of services, there should be two copies, and they should be marked as:

• Original copy to be used by the recipient 

• Duplicate copy for the supplier