How to issue tax invoice as per GST Invoicing Rules – Manner of issuing tax invoice

INTRODUCTION

This article explains how the GST was invoicing will be done. This is a very crucial part of the GST basic procedures because incorrect invoicing may result into confiscating of goods.

As said, GST not only transforms the indirect tax structure but it will also strengthen the logistics chain of the business.

The tax invoice may differ in each category like it may be different for goods supplier than a service provider. Hence, let us understand how invoicing will be done under GST regime.

#INVOICING TYPE NO.1: MANNER OF INVOICING IN CASE OF SUPPLY OF GOODS

In case of supply of goods, the three copies of invoice shall be prepared for the following parties:

1. The original copy being marked as  ORIGINAL FOR RECIPIENT;
2. The duplicate copy being marked as DUPLICATE FOR TRANSPORTERS;
3. The triplicate copy being marked as TRIPLICATE FOR SUPPLIER.

An important point to consider: Under GST rules, a serial number of invoices should be properly marked. A consecutive serial number containing only alphabets and numerals, unique for every financial year should be placed on the tax invoices.

E.g. you may use the following number for invoicing for FY 2017-18;

2017/001 or 2017/AA/001 or any serial number you may decide.

The invoicing copy for transporter is issued for free transportation of goods otherwise the state tax authorities; police may obstruct the supply of goods. However, the government has introduced the new copy of “invoice reference number”.

How to generate “Invoice Reference Number”?

The supplier may obtain an Invoice reference number from the common portal (GSTN) by uploading a tax invoice issued by him. The invoice reference number shall be valid for 30 days from the date of uploading.

To know more about tax invoice, you may read the following article;

Everything about Tax Invoice under New GST Invoicing Rules – With Latest Format

#INVOICING TYPE NO.2: MANNER OF INVOICING IN CASE OF SUPPLY OF SERVICES

In case of supply of services, the two copies of invoices are sufficient, in the following manner:

1. The original copy being marked as  ORIGINAL FOR RECIPIENT;
2. The duplicate copy being marked as TRIPLICATE FOR SUPPLIER.

An important point to consider: Under GST rules, the serial number of invoices should be properly marked. A consecutive serial number containing only alphabets and numerals, unique for every financial year should be placed on the tax invoices.

E.g. you may use the following number for invoicing for FY 2017-18;

2017/001 or 2017/AA/001 or any serial number you may decide.

#INVOICING TYPE NO.3: MANNER OF INVOICING IN CASE OF COMPOSITE SUPPLIERS OR FOR NON-TAXABLE SUPPLIES

If there is any supply made of Non-taxable supplies or by any person registered under composition scheme, then he is not liable to issue the tax invoice. In that case, a bill of supply is issued.

The bill of supply should contain the following details:

  #1. Name, address and GSTIN of the supplier;

  #2. A consecutive serial number containing only alphabets and numerals, unique for a financial year;

  #3. Date of its issue;

  #4. Name, address and GSTIN/ Unique ID Number, if registered, of the recipient;

  #5. HSN Code of goods or Accounting Code for services;

  #6. Description of goods or services;

  #7. Value of goods or services taking into account discount or abatement, if any;

  #8. Signature or digital signature of the supplier or his authorised representative:

An important point to consider: Under GST rules, the serial number of invoices should be properly marked. A consecutive serial number containing only alphabets and numerals, unique for every financial year should be placed on the tax invoices.

E.g. you may use the following number for invoicing for FY 2017-18;

2017/001 or 2017/AA/001 or any serial number you may decide.

Further, all other things like time limit of issuing the invoice shall apply as if it applies to a normal case.

CONCLUSION

GST is new, so it is obvious that there will be queries. Hence, if the case of any query, you may CONTACT US.

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