Invoicing under GST
GST defines a transaction as ‘Supply’ when there is a transfer, exchange, rental, lease, barter, disposal or license of goods or services. Whenever a transaction takes place, a tax invoice has to be issued depending on the occurrence of any such event or within a prescribed time limit. Hence, every taxpayer registered under the GST network shall be required to issue a tax invoice for the supply of goods or services.
- When there is actual movement of goods, then before or at the time of removal of such goods.
- When goods are sold on an approval basis, then earlier of 6 months from the removal date or before or at the time of such removal.
- In case of successive issuance of goods, then earlier of each such issuance.
- On the receipt of goods when on GST is applicable on a reverse charge basis
- Within 30 days from the actual supply
- In case of continuous supply where due date can be ascertained, then 30 days from such due date
- In case of continuous supply where due date cannot be ascertained, then 30 days from actual payment date
- In case of cessation of supply before the contract ends, then at the time of such cessation.
How to Create GST Invoice
The Government of India has come out with a sample GST Invoice format. A sample format is shown below. It is better to issue invoices on the same lines as the example since your Input Tax Credit largely depends on the Invoice Number and its proper reporting. The serial number of the invoice forms the basis of mismatch or matching the invoices between the supplier and the receiver, giving a seamless, hassle-free credit flow.
Cross – Referencing of Invoices
Since the invoice forms a crucial part in claiming credit for the GST paid therein, it is obligatory to upload returns on time so that the credit flows to the end customer seamlessly. The same invoice has to be reported by the Supplier and the recipient to get actual ITC.
