Every registered dealer in the country is required to provide Goods and Services (GST) invoices under the GST regime. These invoices are also known as bills to clients.
GST iInvoice is a business document issued by a registered seller to the buyer of goods and services. This document contains the name of the parties involved in the transaction and the details of the goods and services supplied.
Under the GST regime, it is mandatory to issue invoice whenever there’s a supply of goods and services. As per the GST law, any registered person purchasing goods and services from an unregistered person should issue a payment voucher and GST invoice for such transaction.
Issuing a GST invoice is important for the following reasons:
GST Invoice acts as proof of supply of goods and services. It maintains transparency and the supplier can demand money based on the accounted details mentioned on the invoice.
GST invoice is issued at the time of supply and GST is charged at the time of the supply. This acts as an indicator of the time of supply.
The purchaser can claim income tax Credit (ITC) based on the GST invoice. The purchaser cannot claim ITC until the possession of the tax invoice or debit note.
GST registered business need to issue GST-complaint invoices to clients on the sale of goods and services.
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GST Invoice must contain the following fields:
The time limit differs in case of normal supply and continuous supply.
GST invoice is issued on or before the date of removal/delivery.
GST invoice should be issued on or before the date of the issue of account statement/payment.
Following are the types of GST Invoices:
A tax invoice is a commercial document. This is issued by the seller to the buyer to record the details of the parties involved in the transaction.
Under the GST regime, anyone who receives payment in advance for the supply of goods and services should issue a Receipt voucher. This is a document that acts as a proof of receipt of an advance payment.
If the supplier doesn’t supply goods and service against the receipt voucher of advanced payment the supplier must issue the refund voucher for such a payment receipt.
If the goods and services are supplied to a buyer on a continuous basis this invoice is issued. It is issued before or at the time of such statement issued or received by the seller.
In cases where the supply of services is terminated before the actual supply, this invoice must be issued. The invoice is issued for the period for which the services were rendered. However, this accounts for the period before such termination.
Remember that you can digitally sign the invoice through Digital Signature Certificate. Make sure to check the details of your invoices thoroughly before issue.
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