GST invoice is a bill or receipt of items sent or services that a seller or service provider offers to a customer. It specifically lists out the services/products, along with the total amount due. One can check a GST invoice to determine said product or service prices before CGST & SGST are levied on them. A GST invoice bill also displays the amount of taxes charged on each product or service, which an individual purchases from the seller or provider.
INCLUSIONS IN A GST INVOICE BILL:
The following pointers are mandatory inclusions in such a bill –
£ This invoice should be issued by an input distributor.
£ All supplementary bills/invoices.
£ Any revisions to the invoice generated by the supplier in the past.
Apart from these sections, a GST tax invoice must include these following particulars as well-
F GSTIN, name and address of the supplier issuing a GST invoice,
F Date of issuance,
F A unique serial number not exceeding 16 digits,
F In case of registered recipients, this bill should also include name, GSTIN and address of the receiving party as well,
F A complete description of all services or goods provided, complete with HSN code,
F Amount of discount applicable on these taxes, if any,
F Tax amount,
F Invoice valuation,
F The rate at which CGST, SGST and IGST are charged should be mentioned on this bill,
F The billing address and information,
F Shipping address and information,
F Reverse charge or forward charge,
F Signature of the tax invoice issuer or authorized representative.
TIME OF ISSUE OF INVOICE UNDER GST:
The invoice must be issued before or after the provision of service in case of taxable services. But such an invoice must be issued within a period of maximum 30 days from the provision of service. In case of Banking and Financial Services Institutions (BFSIs) such a period extends to 45 days.
E-INVOICING:
E-invoice is basically a system through which normally generated invoices are electronically authenticated by GSTN.
£ E-invoice is a process through which a normally generated invoice is authenticated by GSTN. Post authentication, each invoice will be issued an IRN (i.e., Invoice Reference Number)
£ E-invoice is applicable only to B2B transactions (i.e. supply of goods or services or both to registered person)
£ E-invoicing basically aims reduction in evasion of tax; auto-population of various returns and also targets the reduction of reconciliations problem currently prevailing under GST.
APPLICABILITY OF GST E-INVOICING:
E-invoicing is not applicable for following categories:
£ Special Economic Zones Units,
£ An insurer,
£ NBFCs
£ Goods Transport Agency,
£ Banking Companies,
£ Financial Institutions,
£ Person supplying passenger transportation services,
£ Person supplying services of admission to the exhibition of the cinematographic films in multiplexes services.
Additionally, e-invoicing doesn’t apply to any person having an aggregate turnover of less than ₹100 Crore (₹50 Crore from 1st April 2021) in a financial year.