Invoicing Under GST

By Registrationwala

28th April 2017


Invoice in basic terms is nothing but a report specifying the number of merchandise sent or administrations and services provided and a proclamation of the aggregate due against the individual's things. Invoice is frequently comprehended as 'proof from sale' but this normal comprehension is distant from the actual truth.

Invoicing shapes an essential function when it comes to carrying out transactions. On every sale/purchase, an invoice is issued by the supplier i.e person making the sale. The Invoice includes S.No, detailed description of the merchandise such as item name, description, quantity, and so forth alongside subtle details of the supplier, purchaser, tax charged and different particulars, for example, discounts, terms of sale and so on and so forth. According to the same invoice, the merchant and purchaser make an entry in their books for accounts.

GST obliges that a tax receipt or bill of supply to be issued previously or on the occurrence of a certain event or within an advised time frame. Therefore, an invoice is required for every different structure of supply, for example, transfer, barter, exchange, license, rental, lease or disposal. GST permits consistent flow of Input Tax Credit (ITC) over the supply chain. A standout amongst the essential pillars of GST is examining the Input Tax Credit (ITC) Claims, for which information about every last bit of Invoice is uploaded and matched. GST framework is backed up tremendously by solid IT assistance from Goods and Services Tax Network (GSTN) for matching such crucial information. GSTN seeks all registered dealers shall file Invoice wise details in order to do such matching.The government has notified rules of invoicing under GST along with a template of invoice covering the elements such as supplier’s details, GST tax rates etc that need to be presented.


There are different types of documents which are required to be issued in different circumstances viz, tax invoice, supplementary invoice, debit note, bill of supply and voucher’s credit note. According to GST Invoice Rules (Rule 5), 2016 issued by the Central Government, two different types of Invoice can be issued under GST, specifically under tax invoice and bill of supply.


Each enlisted taxable man under GST supplying merchandise needs to issue a tax Invoice for all supplies effected. Issuing a tax Invoice is necessary under GST law. However, the government may notify some other document for certain category of services. E.g. Bus ticket, Bank Voucher etc. Some of the crucial details under tax invoice are trade discounts, amount of GST charged, HSN code of goods/accounting code of services etc.


The GST model law has described the time period for issue of GST tax invoices, revised bills, debit notes and credit note. In a normal case, the GST tax invoice has to be issued by a registered dealer:

  • Before/at the time of: Removal of Goods, if supply involves movement of goods Delivery of Goods/making available to recipient,
  • Issuance of successive statements accounts, if supply doesn't involve movement of goods,
  • If supply is a continuous supply of goods when recipient approves or 6 months from the date of removal, if supplied is on approval basis

Every Registered Taxable person who Supplies Taxable Services shall issue a tax Invoice:

  • within 30 days from the date of supply, in normal cases
  • within 30 days from the due date of payment, in the case of continuous supply of services where due date ascertainable
  • within 30 days from the date of payment, in a case of continuous supply of services where due date is not ascertainable at the time of cessation,
  • If the supplier is a bank or any financial institution, then within 45 days from the supply of service.

The manner of issuing Tax Invoice:

In case of supply of Goods, Tax Invoice shall be prepared in TRIPLICATE

  • Original for recipient
  • Duplicate for Transporter
  • Triplicate for the supplier

In case of supply of Services, Tax Invoice shall be prepared in DUPLICATE

  • Original for recipient
  • Duplicate for supplier

How to revise already issued invoice

As per the revised GST model theory area, 28(3a) reconsidered duty receipts might be issued eventually perusing an enrolled taxable representative inside one month from issuance from claiming enrollment i. e. GST Registration. It will be issued against that receipt officially issued throughout the time beginning starting with those powerful date for enrollment till the date of issuance of testament of enrollment with him.


In GST there are a few instances where the supplier is not permitted to charge any tax, therefore, a Tax Invoice can’t be issued alternatively another document called Bill of Supply is issued. A supplier giving exempted stock or a supplier who has decided for composition levy scheme is obliged to issue a bill of supply as opposed to a tax Invoice. A bill of supply is not eligible for claiming input tax credits.Bill of supply is required to be issued even in the case of non-taxable supplies, if the suppliers registered for other supplies made by him.


All revision, rectification, modification, settlement of taxable value or tax charged may have to be carried out through debit and credit notes.The place where original tax invoice need to be been issued Also taxable value/GST charge measure in the receipt exceeds/falls shorter over those genuine taxable value/tax amount, over such instances those supplier could issue debit/credit note.

Credit note needs to be issued not later over September month about succeeding quite a while over which supply might have been aggravated or date of filling about yearly return, whichever may be prior. On the other hand, there is no time limit for the issuance of debit note.


The place any cost about products or administrations may be reconsidered upwards or downwards in pursuance for contract entered under former of the arrangement day, then supplementary invoice/ charge note/ credit note ought to be issued toward those supplier inside 30 days of the cost amendment.


Receipt voucher might a chance to be issued in the event from claiming advance receipt for supply about products or administrations. It not constantly an assessment invoice, won't make recognized concerning illustration qualified record for availment of credit in the control for the beneficiary.

Invoicing in GST will be vital for both supplier and recipient. Proper invoicing can be done only if proper sales order/purchase order are made. Business needs to prepare themselves and discuss with their vendors and customers for proper compliance of GST law and avoid any loss of credit.



Invoicing Under GST