Supply of goods / services is required to be accompanied by a document which is called an invoice. GST primarily provides for two types of invoices namely Tax invoice and Bill of Supply. In addition to these two documents, various other documents are required to be issued in various scenarios. It is to be noted that computer generated documents are accepted but they need to be manually or digitally signed.
The concept of VAT and Retail Invoice has been made redundant by GST. Now in all cases of supply of taxable goods and services a tax invoice is required to be issued. Whether a supply is by a manufacturer, trader or a service provider, tax invoice is to be issued. Further, in both B2B and B2C transactions of taxable supplies, tax invoice is to be issued. In all cases the CGST, SGST, IGST and Compensation Cess amount is required to be separately disclosed on the tax invoice. GST does not allow issuance of cum-tax invoice. A tax invoice may have multiple goods / services having different GST rates.
An important disclosure on the tax invoice is HSN for goods and SAC for services. The Government has given some concession on disclosure of HSN codes on the invoice. These are:
- No HSN code required where turnover is less than Rs. 1.5 Crores
- HSN of 2 digits required where turnover is between Rs. 1.5 Crores and Rs. 5 Crores
- HSN of 4 digits required where turnover is more than Rs. 5 Crores
- 8 digit HSN required in case of imports / exports
The tax invoice will have to be made in triplicate in case of supply of goods and in duplicate in case of supply of services.
Bill of Supply
Bill of supply is to be issued in cases of supply of exempted goods / services. Thus for all practical purchases, a single document cannot be issued for exempt supplies and taxable supplies. A composition dealer is also required to issue a bill of supply as he is not allowed to charge GST on his invoice. All related provisions of tax invoice are applicable to bill of supply as well.
Invoice for Exports
In addition to the above requirements, an invoice for exports will have to contain the one of the following endorsements as applicable.
- Supply meant for export on payment of Integrated tax
- Supply meant for export under bond or letter of undertaking without payment of Integrated tax
A receipt voucher is required to be issued in case of receipt of advance against supply of goods, services or both. This document is important as liability to pay GST triggers at the time of receipt of advance.
In case the advance amount is refunded, a refund voucher is required to be issued.
In certain cases, the liability to pay GST is on the recipient of the goods / service. In such cases, a payment voucher is to be issued at the time of making payment to the vendor.
In cases of supplies received from unregistered persons, a recipient is required to issue a self-invoice evidencing receipt of goods / services. This is document on the strength of which credit of GST paid under reverse charge can be taken.
Debit / Credit Notes
Debit notes or credit notes are to be issued for post sale / purchase adjustments. Cases can be sale / purchase returns or increase / decrease in price after sale.
Delivery Challan is a document to be issued where goods are transported without an invoice. Following instances would require an issuance of a delivery challan:
- Movement of goods to and fro for job work, repair
- Transportation of goods otherwise than for supply like demo, free samples
To conclude, it is utmost important that these documents are issued in proper formats, as the details of all these documents (issued and cancelled) is required to be given in monthly GST returns.
GST Invoice formats for you