As per dictionary, an invoice is a list of goods sent or services provided, with a statement of the sum due for these. For a GST registered firm, creating a GST invoice or an invoice compliant with GST is a must.
You can create it easily with our Free GST Invoice Software.
To understand the importance of a tax invoice under GST regime, you need to understand the mechanism of GST in India.
GST works on the basis of input credit system. In simple words, if you’ve paid a certain amount of GST on a purchase, you can claim the credit on the sale of the final product.
Let us understand input tax credit under GST bill with this simple example.
You’re a manufacturer who has paid tax worth INR 50 on the purchase of raw material. Your tax liability on the sale of final good amounts to INR 100. You can avail input tax credit of INR 50 and reduce your tax liability with the tax you have already paid.
Hence, to keep a track of every transaction with respect to the firm, it is important to create a GST Invoice. To summarize, a GST tax invoice helps you in the following manner –
A GST Tax invoice will have everything required in a regular invoice along with few crucial details pertaining to GST bill implementation. They’re as follows –
*There may be cases where the recipient is not registered but your transaction value exceeds INR 50,000. In such cases, the invoice will include –
GST bill has separate rulings for different cases. These cases has been summarized for you below -
|GOODS (GENERAL CASE)||GOODS (CONTINUOUS SUPPLY)||SERVICE (GENERAL CASE)||SERVICES (BANKS & NBFC)|
|On/Before Date Removal/Delivery||On or Before date of Issue of Account Statement / Payment||Within 30 days of Supply of Services.||Within 45 days of Supply of Service.|
The number of GST invoice being issued are –
Goods :For the supply of good, three copies of GST invoice are required which are as follows-
Services - For the supply of service, two copies of GST invoice are required which are as follows
- The taxable value charged as per GST bill is lesser than the correct value that should have been charged.
- The tax value as per GST bill is lesser than the correct value that should have been charged.
- The taxable value charged as per GST bill is more than the correct value that should have been charged
- The tax value as per GST bill is more than the correct value that should have been charged.
- In case of return of goods
- In case of defective items
Creating a complete GST invoice is not as difficult as it seem like especially with a free GST Invoice Maker software like this. Kick off your journey with GST right away.