What is GST Invoice?

A GST invoice or bill is issued by the supplier or seller to the buyer of goods and services which indicates the name of the parties involved, details of the supply amd the amount due for the payment.

You can create GST E-invoice using Best E-invoice Software - Gimbooks.

Who should issue GST Invoice?

The GST Law mandates that any GST registered person/business must issue a GST compliant invoice for the sale of goods and services. Likewise, the vendors will provide a GST compliant purchase invoice to you.

The invoice identifies the parties involved in the transaction and the description of services or goods sold.

Mandatory Fields of GST Invoice

The mandatory fields of GST invoice are:

  1. Invoice Name and Date
  2. Customer Name
  3. Taxpayer’s and customer’s GSTN
  4. Place of Supply
  5. HSN Code
  6. Product Name
  7. Description
  8. Quantity of goods / services sold
  9. Taxable Value and Discount
  10. Amount of Taxes ie. CGST / SGST / IGST
  11. Date of Supply
  12. Signature of the Supplier

GST invoice Format

A tax invoice is generally issued to charge the tax. A GST Invoice must have the following fields

Section 31 of CGST Act, 2017 mentions the mandatory contents.

  1. Invoice Number
  2. Date
  3. Billing & Shipping Address
  4. GSTN of customer and tax payer
  5. Place of Supply
  6. HSN Code
  7. Taxable Value (CGST/SGST/IGST)
  8. GST Rates
  9. Supplier’s signature

When should you issue an invoice?

One should issue an invoice within the period of maximum 30 days from the provision of service.

In the Banking and financial sector, the period extends to 45 days.

There should be 3 copies of Invoices for the Goods and 2 copies of Invoices for the Services.

GST Invoice Rules

  1. Tax Invoice - If a business is registered under GST, you need to Issue a tax invoice for all the Services and Goods.
  2. If you registered under the Composition scheme, You need to issue a Bill of Supply.
  3. The number of all invoices should be in sequential series.
  4. GST invoice must contain your name, address, place of supply, GSTN
  5. If in the same state, CGST and SGST are charged.
  6. If the transaction is interstate, IGST has to be charged.

Check here, if you are eligible for GST e-invoice.

If you are GST compliant, running a business might feel like a hurdle. But it is very important to make sure that you are respecting all the regulations.

There are a lot of benefits of GST E-invoice and it can be very convenient, if you have a GST ready accounting software for electronic invoicing and bookkeeping.

Gimbooks is one of the best Accounting Software that allows you to create professional and elegant Invoices, Quotations, Purchase orders. You can manage your inventory, expenses, ledgers and send payment reminders to your customers within seconds.

Start using it for free now

Also Read,

  1. 7 Reasons to use Cloud based accounting and automated GST Software
  2. How does the GST e-invoice system work?
  3. Is your business eligible for e-invoice?