Categories of GST Invoices and applicability

When a registered taxable person under GST, sells goods and services, a tax invoice is issued. GST invoice is a basic document which is used for maintaining a record of the sale or purchase on the books of accounts.

Types of Copies of Tax Invoices Under GST

Suppliers are required to issue 3 copies of the invoices; the original, a duplicate and a triplicate.

Original invoice: It is an invoice which is issued directly to the buyer. Whenever a buyer makes the purchase he/she is entitled to receive the first copy of the invoice, which is marked as the Original invoice.
Duplicate copy: A duplicate copy of the invoice is issued to the Transporter of Goods, which can be presented as evidence whenever required. If the supplier can, however, obtain the Invoice Reference Number then the transporter is not required to furnish the duplicate copy of the invoice. An Invoice Reference Number can be obtained by the supplier from the GSTN portal by uploading a tax invoice issued by him/her. This number is valid for 30 days from the date of uploading.
Triplicate copy: This copy of the invoice is kept by the seller himself for his own record.

The Key Features of GST Invoice

GST invoice must contain the following information:

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Name, Address and Goods and Service Tax Identification Number (GSTIN) of the supplier.
Date of issuing an invoice.
If the recipient is registered then it must contain the supplier’s name, address, and GSTIN or Unique Identification Number (UIN).
If the recipient is not registered or unregistered and if the value of taxable supply is Rs. 50,000 or more, then the recipient must contain details like the supplier’s name, the address of the delivery along with the name of its state and code.
Harmonized System Nomenclature (HSN) code of goods or Accounting Code of Services.
Description of goods and services which are being dealt with.
Quantity or unit of goods or Unique Quantity Code.
The taxable value of the goods and services supplied.
Discount or abatement on the taxable value of goods and services.
The rate of tax, upon which the tax will be calculated.
The amount of tax charged on the taxable goods and services.
If the tax is payable on reverse charge basis.
Signature or digital signature of the supplier.

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GST Invoice in case of Exports

For goods that are exported, the invoice will carry an endorsement along with it. The endorsement will be mentioned as “supply meant for export on payment of Integrated Tax” or “Supply for export under a bond or letter of agreement before the payment of Integrated Tax”.

The details which are to be included in Invoice of goods which are exported are:

Name and address of the recipient.
Address where the goods must be delivered.
The name of the country where the delivery should be made.
Number and date of application for removal of goods.

Time Limit for Issuing GST Invoice

Under GST law, time limit for issue of GST invoice has been defined into a broader spectrum and the due dates for issuing an invoice are different in different cases:

In case there is a normal supply of goods, then the invoice is issued on or before the date of delivery.
If the goods are supplied continuously, then the invoice is issued on or before the date of issue of an account statement or before making payment.
If there is a supply of any service, then invoice must be issued within 30 days of provision of the service.
If services are provided by banks and non-banking Financial Company (NBFC’s) then they are entitled to issue an invoice within 45 days of providing the service.

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Types of Invoices

There are various types of invoices or supporting documents such as:

Purchase invoice.
Sales invoice.
Credit note.
Debit note.
Bill of supply.
Refund vouchers.
Advance receipts.

Procedure for Issuing GST Invoice

For supply of goods, the invoice has to be prepared as follows:

The original copy will be marked as “Original for recipient”.
The duplicate copy will be marked as “Duplicate for Transporter”.
The triplicate copy will be marked as “Triplicate for supplier”.

For supply of services, the invoice has to be prepared as follows:

The original copy will be marked as “Original for recipient”.
The duplicate copy will be marked as “Duplicate for supplier”.

A serial number of invoices will be mentioned in GSTR-1, which is issued during the tax period along with the other details of purchases. Registered individuals who sell exempted goods or services or taxpayers paying GST under composition scheme must furnish a separate Bill of Supply.

Possible Reasons for not Issuing of GST Invoice

Following are instances when the GST registered supplier may not issue the GST invoice:

When the recipient does not have a GST registration.
When the recipient doesn’t require the invoice.

In all other cases, registered person is required to issue the invoice. If taxpayers registered under GST does not produce an invoice then it is considered as an offense under GST law, resulting in the imposing of a penalty.

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Understanding Bill of Supply

Bill of Supply is a document of the transaction which is different from GST invoices. This document does not contain any tax amount as the tax is not charged in this case.

Bill of supply is issued in following cases:

When the registered supplier deals in goods and services which are exempted from GST.
If suppliers have opted to pay GST under the composition scheme.

In both cases, registered person cannot charge GST to the buyer and hence there is no tax listed on the bill for which Bill of Supply is issued.

The Important contents or fields under Bill of Supply are as follows:

Name, address, and Goods & Service Tax Identification Number (GSTIN) of the supplier.
Date of issuing Bill of Supply.
Number of Bill of Supply.
Harmonized System Nomenclature (HSN) code of goods or Accounting Code of services.
Description of goods and services.
The value of goods and services after providing discount or abatement.
Signature of the supplier.

For export of goods, the following details related to the buyer will be included:

Name and address of the buyer.
Delivery address.
Name of the country in which delivery is to be done.
Name and date of application for removal of goods for export.

Possible Reasons for not Issuing Bill of Supply

Following are instances when the registered supplier may not issue the Bill of Supply:

When the recipient is not registered.
When the recipient doesn’t require the invoice.

Registered person is required to issue a consolidated bill of supply at the end of each day for all supplies.

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Categories of GST Invoices and applicability