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What is a GST Invoice: Meaning, Format & Time Limits?

Every business transaction requires a record of sale commonly known as an invoice for record keeping and tax purposes. Businesses that are registered under GST have to provide a GST Invoice or similar document like a bill of sale that shows the various types of GST charged for the

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What is a GST Invoice?

A GST invoice is a bill or receipt generated for goods or services supplied that is provided by a seller to the buyer. This document records the sale and shows the amount of GST that is payable for the supplied. The GST invoice must be issued by the supplier to the buyer in lieu of goods/services that have been provided.

The GST invoice not only serves as a record of the sale and shows the GST payable, it is also a mandatory requirement if one has to claim input tax credit. Now let's take a closer look at the types of entities and instances when a GST invoice needs to be issued.

What is the GST Invoice Format?

format includes the following information:

Invoice number and date
Customer name
Shipping and Billing Address
Seller name and Address
GSTIN of the customer (if registered) and the seller
Place of Supply
HSN code of the goods or services
Description of the goods or services
Quantity of the goods or services
Unit price of the goods or services
Total value of the goods or services
GST payable (including rate of CGST and SGST)
Signature of supplier

The GST invoice format is available on the official GST website. Businesses can also use software to generate personalized GST invoices as long as such invoices are compliant with the applicable GST invoice rules. Below is a sample of the GST invoice format in India:

What is The Time Limit For Issuing GST Invoice?

The GST Act specifies the time limit for issue of a valid GST Invoice by the supplier following the supply of goods/services to the buyer. Below are the time limits:

Type of Supply	Time Limit For Invoice Generation
Goods (normal supply)	On or before the date of delivery
Goods (continuous supply)	On or before issue of payment/statement
Services by Banks and NBFC	Within 45 days of providing services
Other Services	Within 30 days of providing services

Is there a difference between a GST invoice and a Bill of Supply?

Yes, there is a key difference between a GST invoice and bill of supply, sometimes called a GST bill. A GST invoice is issued by a GST registered supplier to a GST registered buyer when goods or services are sold. It contains information about the goods or services that are sold, the price of the goods or services, and the amount of GST that is payable. A GST bill, on the other hand, is issued by a registered person to an unregistered person when goods or services are sold. It does not contain any information about the GST that is payable.

Bill of supply are issued when the registered person does not have to charge GST on the sale, such as when the sale is of exempted goods or services, or when the registered person has opted for the GST composition scheme. Bill of supply is also issued when the registered person is selling goods or services to a person who is not registered under GST.

Other Types of Invoices Allowed Under GST

Apart from bill of supply which we have discussed in the earlier section, there are a few other types of invoices that are allowed under current GST rules. Below are the key details of these invoices and when they can be used:

Invoice cum Bill of Supply

If a GST registered entity is engaged in supplying both taxable and exempt supplies to an unregistered entity, a single bill titled “Tax invoice cum bill of supply” can be issued. Similar to GST invoice this too has to be issued by the buyer and provided to the supplier.

Reverse Charge Invoice

The reverse charge mechanism under GST is applicable when the receiver of the supply (goods or services) is liable to pay applicable GST instead of the seller. In such a case, the reverse charge invoice has to be provided by the buyer to the supplier. This type of invoice will mention the amount of GST paid under the reverse charge mechanism by the receiver of the goods. Additionally, the supplier should also receive a payment voucher from the receiver along with the due payment.

Aggregate Invoice

An aggregate or bulk invoice can be created by a GST register seller for an unregistered buyer, if there are multiple invoices each of which is less than Rs. 200. The aggregate invoice can be issued for the total amount of the individual invoices in such cases. So, if there are 4 invoices for Rs. 50, Rs. 60, Rs. 70, and Rs. 100, the single bulk invoice will be issued for Rs. 280.

Debit Note and Credit Note

A debit note or credit note is to be issued if the value of tax payable on supplied goods/services changes. The debit note is issued if more tax is to paid by the receiver than was originally mentioned in the GST invoice. A credit note is to be issued if the amount of GST mentioned on the GST invoice is higher than the actual tax liability. Other reasons for issue of a credit note may include return of goods by the buyer to seller post payment or due to deficiency in services provided.

What is a GST e-Invoice?

The GST e-Invoice is an electronic invoicing system that can be used for obtaining digitally signed electronic invoices. The current e-invoice system under GST allows for authentication of B2B invoices on the GST Network, which can then be used on the common GST portal.

The e-invoicing system which is available through the website https://einvoice1.gst.gov.in/ generates and assigns a unique identification number for each B2B invoice that is raised. Once an electronic invoice is created, the e-invoice data is automatically transmitted to both the GST portal and e-way bill portal in real time, which can be checked for discrepancies by both the seller and the buyer.

What are Benefits of the GST e-Invoice System?

The are some multiple benefits for those who are opting for GST e-invoicing. Some of the key benefits of generating B2B electronic invoices under GST include:

Reduced possibility of data mismatch between invoices and information on GST Portal
Increased inter-operability between various GST systems like e-way bill system and GST portal that improves efficiency of the system
Real-time tracking of invoices by buyers and sellers
Backward integration and automation of tax return filing system which saves times
Quicker tracking and availability of input tax credit
Increased transparency of operation resulting in reduced possibility of audits and notices by tax authorities

In view of these key benefits, it is obvious and GST registered entities who are engaged in B2B operations would gain significant advantage from the introduction of the GST e-invoicing system.

Frequently Asked Questions FAQs

ARN: Nov23/Bg/08G

Sources:

cleartax.in/s/gst-invoice

tallysolutions.com/gst/what-is-bill-of-supply-in-gst

www.legalmantra.net/blog-detail/taxinvoicebillofsupply

tallysolutions.com/gst/gst-invoice/

www.indiatoday.in/information/story/what-is-gst-invoice-all-you-need-to-know-1730905-2020-10-12

cbic-gst.gov.in/aces/Documents/draft-formats-under-invoice-rules.pdf

www.nic.in/products/gst-e-invoice/

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