“At the stroke of the midnight hour, when the world sleeps, India will awake to life and freedom.”
These words of our first Prime Minister Pt. Jawaharlal Nehru, spoken at the midnight of 14th August, 1947 – as India prepared itself to welcome independence from the British rule – will hold true again 70 years later, as the nation prepares itself to herald a new era – promising freedom from tax duplications, freedom from tax complications and freedom from tax corruption.
Prime Minister Shri Narendra Modi and President Pranab Mukherjee officially welcomed GST on the midnight of 30th June, by ringing a bell at Parliament. But the question is, how prepared are you to continue your business seamlessly in the GST era? Can you pass your first GST invoice from 00:01 am? The short answer is YES!
Here’s a quick check list for you to start your GST invoicing from the mid-night of 30th June – we have also shown you how your invoice will look in Tally’s GST-Ready product – Tally.ERP 9 Release 6.
Invoicing in the GST regime
In this article, we will take you through the following invoices, which you will come across in the GST regime:
- Tax Invoice
- Reverse Charge Invoice
- Receipt Voucher
- Export Invoice
- Delivery Challan
- Bill of Supply
- Debit Note
- Credit Note
When a registered taxable person supplies taxable goods or services – a Tax Invoice is issued. To issue and receive a GST compliant invoice is a prerequisite to claim Input Tax Credit (ITC). If a dealer does not issue such an invoice to his customer (who is a registered taxable person) – his customer loses the claimable ITC and the dealer loses his customers.
Make sure you are capturing the following mandatory information in the Tax Invoice
- Invoice number and date
- Customer name
- Shipping and billing address
- Customer and taxpayer’s GSTIN
- Place of supply
- HSN / SAC code
- Taxable value and discounts
- Rate and amount of taxes i.e. CGST + SGST (for intrastate) & IGST (for inter-state)
- Item details i.e. description, unit price, quantity
By when do you need to issue the Tax Invoice?
For Supply of Goods
The tax invoice must be issued before or at the time of
- Removal of goods, where supply involves movement of goods
- Delivery of goods to the recipient, where supply does not require movement of goods
- Issue of account statement/ payment, where there is continuous supply
For Supply of Services
The tax invoice must be issued within
- 30 days from the date of supply of the service
- 45 days from the date of supply of the service, where the supplier is an insurer or banking company or a financial institution
How many copies of the tax invoice are required?
For Supply of Goods
Three copies of the invoice are required – Original, Duplicate, and Triplicate.
- Original invoice: The original invoice is issued to the receiver, and is marked as ‘Original for Recipient’.
- Duplicate copy: The duplicate copy is issued to the transporter, and is marked as ‘Duplicate for Transporter’. This is not required if the supplier has obtained an Invoice Reference Number. The Invoice Reference Number can be obtained by the supplier when he uploads a tax invoice issued by him on to the GST portal. It is valid for 30 days from the date of upload of invoice.
- Triplicate copy: This copy is retained by the supplier, and is marked as ‘Triplicate for Supplier’.
For Supply of Services
Two copies of the invoice are required:
- Original Invoice: The original copy of the invoice is to be given to receiver, and is marked as ‘Original for Recipient’.
- Duplicate Copy: The duplicate copy is for the supplier, and is marked as ‘Duplicate for Supplier’.
What is the minimum amount for which you can raise a Tax Invoice?
A tax invoice need not be issued when the value of the goods or services supplied is less than INR 200 if:
- The recipient is unregistered
- The recipient does not require an invoice (In case the recipient demands for the invoice, Tax Invoice should be issued)
However, a consolidated tax invoice or an aggregate invoice should be prepared at the end of each day for all such supplies for which the tax invoice is not issued.
Tax Invoice for Intrastate Transactions in GST-Ready Tally.ERP 9 Release 6
In the case of Intrastate transactions, CGST and SGST will be charged. The format of your tax invoice for intrastate transactions is as follows –
Tax Invoice for Interstate Transactions in GST-Ready Tally.ERP 9 Release 6
In the case of Interstate transactions, IGST will be charged. The format of your tax invoice for inter-state transactions is as follows –
Tax Invoice for Bill-To-Ship-To Transactions in GST-Ready Tally.ERP 9 Release 6
In the case where the material is sent to the consignee on 3rd party’s instruction, a Bill-To-Ship-To scenario will arise. If the 3rd party is in the same state, CGST and SGST will be charged, though the material is shipped to another state.
Handling purchases from URD – Reverse Charge Invoice
In the case of a registered person purchasing from an ‘unregistered dealer’, the tax is paid by the recipient, and the recipient must issue an invoice on the date of receipt of goods or services.
Reverse Charge Invoice in GST-Ready Tally.ERP 9 Release 6
Handling advance payments – Receipt Voucher
In the case of a registered dealer receiving an advance payment for a supply, the dealer should issue a receipt voucher for the advance paid by the recipient.
Receipt Voucher in GST-Ready Tally.ERP 9 Release 6
Handling exports effectively – Export Invoice
An export invoice must, in addition to the details required in a tax invoice, contain the following details:
- Must have the words ‘“Supply meant for export on payment of IGST” or “Supply meant for export under bond or letter of undertaking without payment of IGST”
- Name and address of the recipient
- Name of the destination country
- Delivery address
Export Invoice in GST-Ready Tally.ERP 9 Release 6
When to issue Delivery Challan?
Delivery Challan can be issued in some special business cases, such as –
- Supply of liquid gas, where the quantity at the time of removal from the place of business of the supplier is not known
- Transportation of goods for job work
- Transportation of goods for reasons other than supply
- Any other notified supplies
Delivery Challan in GST-Ready Tally.ERP 9 Release 6
When to issue Bill of Supply?
Bill of Supply is to be issued by a registered supplier in the following cases:
- Supply of exempted goods or services
- Supplier is paying tax under composition scheme
Similar to tax invoice, a bill of supply need not be issued when the value of goods or services supplied is less than INR 200, unless the receiver insists for the bill. However, a consolidated bill of supply should be prepared at the end of the business day for all such supplies for which the bill of supply is not issued.
Bill of Supply in GST-Ready Tally.ERP 9 Release 6
How to revise the values of a Tax Invoice already issued?
To revise the taxable value or GST charged in an invoice, a debit note or supplementary invoice or credit note must be issued by the supplier.
Debit note / Supplementary Invoice – These are to be issued by a supplier to record increase in taxable value &/or GST charged in the original invoice.
Credit note / Revised Invoice – These are to be issued by a supplier to record decrease in taxable value &/or GST charged in the original invoice. Credit note must be issued on or before the 30th September – following the end of the financial year in which the supply was made OR the date of filing of the relevant annual return, whichever is earlier.
Details to be covered in debit notes and credit notes:
Debit notes, supplementary invoices and credit notes must include the following details:
- Nature of the document must be indicated prominently, such as ‘revised invoice’ or ‘supplementary invoice’
- Name, address, and GSTIN of the supplier
- A consecutive serial number containing only alphabets and/or numerals or special characters hyphen “-“ or slash “/”, unique for a financial year
- Date of issue of the document
- If recipient is registered- Name, address and GSTIN/Unique ID number of the recipient
- If recipient is unregistered- Name, address of recipient and address of delivery, with state name and code
- Serial number and date of the original tax invoice or bill of supply
- Taxable value of the goods or services, rate of tax and the amount of tax credited or debited to the recipient
- Signature or digital signature of the supplier or his authorized representative
Credit Note in GST-Ready Tally.ERP 9 Release 6
Debit Note in GST-Ready Tally.ERP 9 Release 6
Are you GST ready yet?