A GST invoice is an essential document for businesses operating under the Goods and Services Tax (GST) framework. It must be issued by a registered supplier at the time of goods removal or service provision, ensuring adherence to tax regulations. This article explores the critical details required in a GST invoice, highlighting the significance of accuracy and thoroughness.

Critical Information Required in a GST Invoice

According to Rule 46 of the CGST Rules, a tax invoice must include specific information. Here are the 16 mandatory details that every GST invoice should encompass:

1. Supplier Details: Name, address, and GSTIN of the supplier.
2. Invoice Number: A unique tax invoice number (up to 16 characters) generated consecutively for the financial year.
3. Date of Issue: The date the invoice is created.
4. Recipient Details: If the recipient is registered, include their name, address, and GSTIN.
5. Non-Registered Recipients: For unregistered recipients with a value exceeding Rs. 50,000, provide the name, address, delivery address, and state code.
6. HSN/Service Code: Mention the HSN code for goods or the service accounting code for services.
7. Description: A clear description of the goods or services supplied.
8. Quantity: The quantity of goods in appropriate units (e.g., kg, meter).
9. Total Value: The total value of the supply.
10. Taxable Value: The taxable value after any discounts.
11. GST Rates: Clearly state the applicable GST rates (CGST, SGST, IGST, UTGST, and any cess).
12. Tax Amount: The total tax amount along with a breakdown of each component.
13. Place of Supply: The place of supply and the name of the destination state for inter-state transactions.
14. Delivery Address: If different from the place of supply, provide the delivery address.
15. Reverse Charge: Indicate whether GST is payable on a reverse charge basis.
16. Signature: Must include the signature of the supplier or an authorized representative.

HSN Code Reporting

As of April 1, 2021, businesses with a turnover exceeding Rs. 5 crore are mandated to use a 6-digit HSN code for all invoices. Those with a turnover of Rs. 5 crore or less may optionally use a 4-digit HSN code for B2B invoices, although it remains optional for B2C invoices. For further details on compliance and registration processes, refer to our guide on MSME registration.

Endorsement Requirements for Export Invoices

Certain invoices must include specific endorsements, particularly for exports. These endorsements vary based on whether tax is paid or not. The two primary types are:

• With Tax Payment: Supply to SEZ units or developers for authorized operations on payment of integrated tax.
• Without Tax Payment: Supply to SEZ units or developers under bond or letter of undertaking without payment of integrated tax.

Format of a GST Invoice

A typical GST invoice must incorporate all 16 mandatory fields. It's essential to stay updated as the GST Council may adjust the number of HSN digits required for different classes of registered persons.

Situations Where a Tax Invoice is Not Required

A registered supplier may refrain from issuing a tax invoice if the recipient is not registered and the invoice is unnecessary. Understanding these nuances can help businesses maintain compliance and streamline their invoicing processes.

Keeping Invoice Copies

The GST Law emphasizes the necessity for businesses to retain copies of all invoices.

Invoices for Goods Supply:

• Must be prepared in triplicate:
  • Original for the recipient
  • Duplicate for the transporter
  • Triplicate for the supplier

Invoices for Services Supply:

• Must be prepared in duplicate:
  • Original for the recipient
  • Duplicate for the supplier

For further insights into invoicing under GST, consider exploring additional resources such as articles on invoice matching, tax invoices in special cases, and understanding delivery challans under GST.