Different Types of Bills and Invoices under GST – You should know

Bills and Invoices under GST :  When providing goods or services, a taxable person is required to issue the GST invoice in accordance with GST. An invoice for the items must be issued by the provider before or at the time of:

  • Removal of goods for supply to the recipient, where the supply involves movement of goods; or
  • Delivery of goods or making available thereof to the recipient, in any other case.

If services are being supplied, the invoice needs to be sent out either before or after the services are rendered, but no later than 30 days after the services are rendered. If the service provider is a financial institution, insurance business, bank, or non-banking financial company, an invoice needs to be sent out within 45 days after the service date.

B2B Invoice

When any invoice is issued to Registered person that is known as B2B invoice. The customer’s name, address, and GSTIN or UIN must be included in a B2B GST invoice. Additionally, all B2B invoice item level details must be uploaded to GSTN upon invoice issuance in order to be included in the GSTR-1 return.

B2C Large Invoice

When any invoice is issued to un registered person, that invoice is known as B2C invoice. A B2C Large invoice has a taxable supply value of more than Rs.50,000, the recipient’s name, address, delivery address, and place of supply must be included. For any B2C invoice with a taxable value greater than 2.5 lakhs, the taxpayer must further upload the invoice level data to the GSTN.

Read also: 30-day time limit for GST e-invoice reporting

B2C Small Invoices

Every B2C Small invoice needs to have a serial number, together with the invoice date, value of the supply, applicable tax amount, applicable GST rate, and the HSN or SAC code of the items delivered.

Consolidated Tax Invoice

If the transaction value is less than or equal to Rs 200, a registered taxpayer can choose not to issue a tax invoice and instead issue a consolidated tax invoice at the end of each day if the recipient is a non-registered taxpayer or does not require a tax invoice (B2C). Consolidate tax invoice shall not be issued if either of the above conditions is not satisfied.

Revised invoices

A GST registered individual may submit a revised invoice in response to an invoice that was previously issued between the date of the registration’s effective date and the date on which the individual receives the registration certificate, within one month of the certificate’s issuance and in any way that may be prescribed.

The taxpayer should give the details of the original invoice and issue a revised invoice in the prescribed format.

A registered person may issue a Consolidated Revised Tax Invoice in respect of all taxable supplies made to an unregistered recipient during such period.

Bill of Supply

A bill of supply is a particular kind of invoice that is provided by a registered supplier of exempt goods or services, or by an enrolled person under a composition scheme. The amount specified in the bill of supply is typically not subject to taxes.

Here is the list of the person who is required to issue Bill of supply:

(i) Supplier of Exempted goods or/and services: Any registered taxable person who is supplying any goods or/and services that are exempt. In such a case that person needs to issue a bill of supply.

(ii) Composition Dealer: Since they are unable to claim Input Tax Credit on the supplied goods or services, any taxpayer registered under the composition scheme may also issue a bill of supply.

(iii) Exporter: The taxpayer exporting goods or/and services can also issue a bill of supply as export is considered as zero-rated supply under GST.

Receipt voucher

A registered person must provide a receipt voucher or other document attesting to the receipt of the payment, along with any details that may be required.

Refund voucher

The said registered person may issue to the person who had made the payment, a refund voucher against such payment.

Input services Distributor invoice

The input tax credit on the input services he uses can be divided among the business divisions and branches of an input service distributor. In these circumstances, the input service distributor, or ISD as it is more commonly known, issues ISD invoices on each unit that include information about the purchase transaction and the quantity of ITC assigned to that specific unit.

Delivery Note /Delivery Challan

Every time a shipment of goods is delivered to a buyer or customer, a delivery note or delivery challan is the paperwork that is generated. It provides the list and quantity of goods delivered along with confirmation that the goods have been delivered to the buyer’s location.

Read also: Mandatory uploading e-invoices within 7 days after transaction: GSTN

Credit Note/ Debit Note

Debit and credit notes are typically issued when customers return goods to suppliers or sellers of the goods. When a discrepancy is discovered in a previously issued tax invoice for a good or service, these commercial documents are issued.

A debit note is issued when any of these 2 conditions arise.

  • The formerly issued tax invoice displays a lower taxable value than the correct amount.
  • The amount of tax charged in this tax invoice is lower than the actual value.

On the other hand, a credit note is issued for the opposite reasons.

  • The taxable amount or tax charged in the invoice is higher than the correct figures.
  • There is a discrepancy in services or products provided, and the buyer returns them and asks for a refund.

Mandatory fields in GST Invoice:

1. Name, GSTIN, and address of the supplier

2. Invoice number

3. Date of issuance

4. Invoice type

5. Shipping and billing address

6. Name of the customer

7. GSTIN of the customer if registered

8. Details of products and services provided, including description, quantity, etc.

9. SAC code or HSN code

10. Rate of CGST, IGST, UTGST, and SGST charged

11. Total tax amount and discounts, if any

12.Reverse charge

13. Signature of the invoice issuer

Disclaimer: The article or blog or post (by whatever name) in this website is based on the writer’s personal views and interpretation of Act. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon.
Also, www.babatax.com and its members do not accept any liability, obligation or responsibility for author’s article and understanding of user.

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