When to Issue a GST Invoice: Everything You Need to Know

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A GST invoice is important to qualify for GST credit, but an incorrect invoice can hinder the same. Check here when the GST bill needs to be increased.

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If you are a GST-registered business, you must provide your customers with GST-compliant invoices for the sale of goods and/or services. A GST registrant is only eligible for an input tax credit if they have a GST invoice or debit note.

Your GST-registered suppliers will provide you with GST-compliant purchase invoices. The invoice identifies the parties involved in the transaction and the description of the goods sold or services provided. A GST invoice is a document that provides proof of the supply of goods and services, which is the means used to calculate the tax on those goods and services.

WHAT IS THE GST INVOICE:

A GST invoice is issued by a supplier or seller to the recipient or purchaser of goods and services. Such a document indicates the names of the parties involved as well as the details of the goods or services provided within the framework of a given transaction.

  • Product Name
  • the description
  • quantity of goods or services sold
  • contact details of supplier and buyer
  • supply conditions
  • delivery date
  • price of each good sold or service rendered
  • delivery

WHEN SHOULD THE GST BILL BE HIGH:

The invoice must be issued before or after the provision of the service in the case of taxable services. But such an invoice must be issued within a maximum period of 30 days from the provision of the service. In the case of Banking and Financial Services Establishments (BFSI), this period extends to 45 days.

The timing of the GST charge depends on the nature of the supply, i.e. whether it is a supply of goods or a supply of services.

GST INVOICE FORMAT:

A tax invoice is usually issued to charge the tax and pass on the input tax credit. A GST invoice must include the following mandatory fields. Article 31 of the 2017 CGST law mentions the mandatory content of the invoice.

  • Date and invoice number
  • Client name
  • Customer billing address and delivery address
  • GSTIN of taxpayer and client (if registered)
  • Place of supply
  • HSN Code (Harmonized Nomenclature System Code)
  • Rateable value/applicable discount
  • GST rates and total GST charged include details of the applicable CGST/SGST/IGST for the item.
  • Signature of supplier

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