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GST Invoice Format and Rules | All About Invoicing Under GST



Each and every seller who sell their products or services to the customer must issue an Invoice copy to the customers. It is mandatory that everyone should be aware of the new GST Invoice as it comes with quite a number of changes in the current regime. Here in this article, the GST invoice and how to create it, things to be included, new format are discussed in detail.

The GST is going to change the way the country is now complying with taxation. It is going to unite all the States and Union Territories under one roof for a better and wise tax reporting structure. In order to achieve this, GST requires a hassle free invoice based reporting system of the process flow. Thus all the important information about the goods and services are recorded and maintained until the last stage.

Read also: Save My Tax Launches GST Compliance Software for Tax Practitioner’s, Traders & MSMEs

The current tax system allows the premises to prepare own invoice because of the different service tax, central excise, and VAT. But the needs and procedures of such invoice vary from state to state. So GST imposes the uniform invoice for registered premises all over the country. As invoices become the only factor for the whole transaction of the goods, having a single format will have a smooth flow throughout the process. The logistics and the supply chain will have a clear approach towards maintaining, uploading and returning the services or goods.

Invoicing Under GST

The invoices issued hereafter by all business should follow the new GST Invoice format containing the following:

  1. Name, address and GSTIN of the supplier
  2. A consecutive serial number, not more than sixteen characters, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year
  3. Date of issue of Invoice
  4. Name, address and GSTIN or UIN, if registered, of the recipient
  5. Name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is un-registered and where the value of taxable supply is fifty thousand rupees or more
  6. HSN Code in case of goods
  7. Accounting Code in case of services
  8. Description of goods and services
  9. Quantity in case of goods and unit or Unique Quantity Code thereof
  10. Total value of supply of goods or services or both
  11. Taxable value of supply of goods or services or both taking into account discount or abatement, if any
  12. Rate of tax (central tax, State tax, integrated tax, Union Territory tax or cess)
  13. Amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union Territory tax or cess)
  14. Place of supply along with the name of State, in case of a supply in the course of inter-State trade or commerce
  15. Address of delivery where the same is different from the place of supply
  16. Whether the tax is payable on reverse charge basis and
  17. Signature or digital signature of the supplier or his authorised representative

In addition to the above details, an invoice of an export good or service shall include the following:

  2. Country of destination
  3. Delivery address
  4. The Number and date of application of form for removal, i.e. Form ARE-1

Also, when an Input Service Distributor issues the invoice, then “Amount of credit distributed” shall also be added to the invoice instead of the rate and value of the goods or services.

In case you are a Goods Transport Agency, you are an important link in the supply chain and has to include the following in your invoice:

  1. Name and address of the consignor and the consignee
  2. Registered Vehicle number
  3. Gross weight of the consignment
  4. Place of Origin
  5. Destination
  6. GSTIN of the person liable to pay tax

GST Invoice Format

The government has clearly notified the invoicing procedures along with the template of the GST Invoice (GST INV-01) including all the details such as supplier’s details, taxation details, etc. The invoice format of the GST is given below.

GST Invoice Format

GST Invoice Format

GST Invoice Format

GST Invoice Format

Copies of GST Invoice

The GST requires the businesses to prepare triplicate of invoices for the supply of goods as given below:

  • The original copy being marked as ORIGINAL FOR RECIPIENT
  • The duplicate copy being marked as DUPLICATE FOR TRANSPORTER

The transporter need not carry the invoice if the supplier has provided the Invoice Reference Number.

How to obtain “Invoice Reference Number”?

The supplier can obtain an Invoice reference number from the common portal (GSTN) by uploading the tax invoice issued by the supplier. The invoice reference number will be valid only for 30 days from the date of uploading.

  • The triplicate copy being marked as TRIPLICATE FOR SUPPLIER

The GST requires the businesses to prepare a duplicate of invoices for the supply of services as given below:

  • The original copy being marked as ORIGINAL FOR RECIPIENT
  • Tthe duplicate copy being marked as DUPLICATE FOR SUPPLIER

Note: Once the invoice is issued, the serial number of the invoices issued during a tax period should be uploaded electronically through the GST Common Portal in Form GSTR-1.

Apart from the tax invoice, other important documents include Supplementary Invoice, Revised Invoice, Debit or Credit Notes, and Bill of Supply, are discussed in detail below.

Time Limit for Issuing Invoice

The invoices must be issued within a time period of thirty days from the date of supply of goods or services. It is to ensure timely filing of the records to both the businesses and the taxation department to minimise the chaos.

Bill of Supply

The tax invoice is issued in order to charge the tax and avail the credit. Under certain cases in GST, the supplier cannot charge any tax on the customer and thus tax invoice cannot be issued. Instead, GST has another document called Bill of Supply to be issued.

Circumstances where a registered supplier needs to issue the bill of supply:

  • Providing supply of exempted goods or services
  • Supplier is paying tax under composition scheme

Supplementary Invoice / Debit Note

During an upward revision of prices in the goods and services provided earlier, it complies with the GST. Thus the supplier has to issue a supplementary invoice to the recipient. That supplementary invoice must be raised within 30 days from the date of price revision.

Credit Note

Same as the debit note issued during an upward revision in price, a credit note is to be issued during a downward revision. GST should be levied on the previous transaction. These credit notes has to be issued within 30th September of the following financial year or before filing the annual return of GST, whichever comes first.

The contents of the documents are same as that of the tax invoice and the only difference is that the nature of the invoice must be mentioned in Bold on the top of the invoice as “SUPPLEMENTARY INVOICE,” “DEBIT NOTE” for example.

The GST Council currently prescribes to preserve the above document for 6 years. Thus it needs a firm IT system to maintain the huge database for the desired time.

Click here for more GST News and Updates 

GST Invoice – Key Points to Remember

The below are some important points relating to invoices to be remembered:

  1. The concept of the retail invoice has gone. Under GST only TAX INVOICES are to be issued.
  2. The Invoice needs to be issued at the time of supply of goods. In the case of services, the invoices should be issued within 30days from the date of supply of service.
  3. Where the amount of invoice is less than Rs. 200 then no need to issue the invoice in case of B2C transactions. However, in respect of such supplies, the supplier shall issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies.
  4. If the invoice amount is more than Rs. 50,000 and recipient is an unregistered person, then it is mandatory to mention the name, address, the state of the receiver on the invoice.
  5. In case of purchase of goods/supply from an unregistered person, a payment voucher along with a tax invoice (for self) needs to be issued.
  6. In case of supply of goods, the assessee has to prepare three copies of invoice one for purchaser, second fo the transporter and third for self.
  7. Person supplying services have to make two copies of invoice one for the service receiver and second for the self.
  8. In case of advance payment received, receipt voucher needs to be issued, and if no supply has been made against such advance, issue a refund voucher. If only a part of supply is made against it issue a credit note.
  9. A composite dealer needs to issue Bill of supply.
  10. Once the tax invoice has been uploaded on GSTN changes cannot be made by the assessee. In case of any changes to be done, then they should be made through debit and credit note. The information mentioned in tax invoice should be mentioned in debit or credit note to execute the changes.

To have a free flow of credit, it is easy to use a GST compliance software to help you maintain the book of records in the proper format. It is high time that you start preparing yourself and your business to get into GST and thus having a GST compliance software may ease your work.

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GST on Electricity Bill in India | Move May Draw Criticism




GST on Electricity Bill

GST on Electricity Bill in India: The indirect tax department has clarified that rent on electricity meter draws goods and service tax (GST), a development which is likely to draw criticism from the industry.

The Central Board of Excise and Customs (CBEC) said even though electricity is exempted from GST, rent on electricity meter is not.

Pratik Jain, partner PwC, said there was a contrary circular under the service tax laws. He said the Industry is likely to pitch in for an exemption on these ancillary charges else consumers will have to bear the additional burden.

Read also 200 Days Of GST | GST so far | Upcoming GST Council Meet

GST on Electricity Bill in India

GST on Electricity Bill in India

He told that the electricity bill should not be taxable and should be treated as an incidental to transmission and distribution.

Besides, GST will also be required on application fee for releasing the connection of electricity. Also, there will be a testing fee for meters, transformers, capacitors and even labor charges from customers for shifting meters or shifting service lines.

Read also GST on Petrol, Diesel, LPG | Government Ready to Bring Petroleum under GST

The department also clarified that retreading of tyres is a service, against the popular idea that it is both goods and services. This service would be taxed at 28 percent under the GST.

CBEC said the pre-dominant element here is the process of retreading, which is a supply of service. The rubber used for retreading is an ancillary supply, and hence this activity is a service.

GST on Electricity Bill in India

GST on Electricity Bill in India

For example, the bus body building will cover both supplies of goods and services.

Thus, CBEC declared that the classification of this as goods or services would depend on which is the principal supply. Pratik Jain told that facts and circumstances of each case might determine it.

Read also Badri Narain Sharma Appointed as Chairman of GST Anti-Profiteering Authority

“The circular clarifies certain important aspects. It was mentioned that value is not the only determinant to arrive at the dominant nature of supply (goods or service),”

Click for More GST Updates

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Highlights of Union Budget 2018 | Key highlights from Arun Jaitley Budget 2018




Highlights of Union Budget 2018

Highlights of Union Budget 2018: Finance Minister Arun Jaitley presented the general budget 2018-19 in Parliament. The union budget was guided by a mission to strengthen agriculture, rural development, MSME, health, education, employment, and infrastructure sectors. In this budget, India’s farmers and villagers, as well as companies with exposure to agriculture, emerge as the winners. Bond investors and consumers might just be the losers. The government said that a range of structural reforms would propel India among the fastest growing economies of the world. Country firmly on track to achieve over 8% growth as manufacturing, services and exports back on right growth path.

Click here to read the Key highlights from Arun Jaitley Budget 2018

Highlights of India Union Budget 2018

Highlights of India Union Budget 2018

Highlights of India Union Budget 2018

  • No change in personal income tax structure. There is a standard deduction of Rs. 40,000 for salaried taxpayers in lieu of transport and medical expenses.
  • 25% Corporate tax rate extended to companies with turnover up to Rs. 250 crore.
  • As a measure to tackle the challenge of air pollution in the Delhi-NCR region, Shri Jaitley said that a special Scheme will be implemented to support the efforts of the governments of Haryana, Punjab, Uttar Pradesh and the NCT of Delhi to address air pollution and to subsidize machinery required for in-situ management of crop residue.
Highlights of India Union Budget 2018

Highlights of Union Budget 2018

Read also India Union Budget 2018 | Will Budget 2018 Reduce Your Income Tax?

  • 100% tax deduction for companies registered as farmer-producer companies with a turnover of Rs. 100 Crore.
  • Long-term capital gain exceeding Rs. 1 Lakhs will be taxed at 10% without indexing and for short-term capital, the tax remains at 15%.
  • An exemption in income of Rs. 50,000 from bank FD and post office deposit for senior citizens.
  • Senior citizens to get Rs. 50,000 er annum exemption for medical insurance under section 80 D.
Highlights of India Union Budget 2018

Highlights of Union Budget 2018

  • India produced over 275 million tonnes of food grain and 300 million tonnes of fruits and vegetables in 2016-17.
  • Crop production at record high; The government is committed to giving 50% more than the cost of crop production to farmers.
  • The government to set MSP at one-and-half times the cost of production for Kharif crops.
  • The government will ensure farmers to get MSP if prices fail; Niti Aayog will discuss with the state government as a mechanism to ensure farmers get better prices.
  • The government planned for Rs. 2000 Crore fund to be set up for upgrading rural agriculture markets. Rs. 5.97 lakh crore allocation for infrastructure
  • Ten prominent sites to be developed as Iconic tourist destinations and NITI Aayog to initiate a national programme on Artificial Intelligence(AI)
Highlights of India Union Budget 2018

Highlights of Union Budget 2018

  • Centres of excellence to be set up on robotics, AI, Internet of things etc. Disinvestment crossed target of Rs 72,500 crore to reach Rs 1,00,000 crore
  • Comprehensive Gold Policy on the anvil to develop yellow metal as an asset class.
  • 100 percent deduction proposed to companies registered as Farmer Producer Companies. With an annual turnover up to Rs. 100 crore on profit derived from such activities, for five years from 2018-19.
  • Deduction of 30 percent on emoluments paid to new employees Under Section 80-JJAA to be relaxed to 150 days for footwear and leather industry, to create more employment.
Highlights of India Union Budget 2018

Highlights of Union Budget 2018

  • No adjustment in respect of transactions in immovable property where Circle Rate value does not exceed 5 percent of consideration.
  • Proposal to extend the reduced rate of 25 percent currently available for companies with a turnover of fewer than 50 crores (in Financial Year 2015-16), to companies reporting turnover up to Rs. 250 crore in Financial Year 2016-17, to benefit micro, small and medium enterprises.

Read also Economic Survey 2018 | Demonetisation and GST Boost Tax Collections

  • Standard Deduction of Rs. 40,000 in place of present exemption for transport allowance and reimbursement of miscellaneous medical expenses. 2.5 crore salaried employees and pensioners to benefit.
Highlights of India Union Budget 2018

Highlights of Union Budget 2018

  • The government has promoted organic farmers in a big way; women self-help groups to be encouraged to take up organic farming.
  • Food processing sector growing at 8% allocation for food processing ministry being doubled to Rs. 1400 Crore.
  • India’s agriculture export potential is $100 bn as aganist current $30 bn exports.
  • Mass formalisation of MSME sector is happening after demonetization and GST.

Read also What is e-Way Bill? | A Complete Guide on GST E-Way Bill

  • The target for loan disbursement under Mudra scheme set at Rs.3 Lakh crore for FY 2018-19.
  • The government identifies 115 ‘ aspirant districts’ to make them model districts of development.
  • PM Jeevn Jyoti Biima Yojana to reach all poor households and 24 new government medical college and hospitals to be set up by grading existing district hospitals.
  • Outlay on health, education and social protection will be 1.38 lakh crore. Tribal students to get Ekalavya Residential School in each tribal block by 2022. Welfare fund for SCs gets a boost.
Highlights of India Union Budget 2018

Highlights of Union Budget 2018

  • Setting up of PM research fellow scheme; 1000 B-Tech Students to be selected. Two new planning and architecture schools to be set up in IITs.
  • World’s largest Health Protection Scheme covering over 10 crore poor and vulnerable families launched with a family limit up to 5 lakh rupees for secondary and tertiary treatment.
  • Th government to focus on health, education and social protection. To use technology to improve education from “blackboard to digital board”
  • Natural resources are now being allocated in a transparent and honest manner and there is a premium on honesty.
  • Fiscal Deficit pegged at 3.5 %, projected at 3.3 % for 2018-19.
Highlights of India Union Budget 2018

Highlights of Union Budget 2018

  • Higher targets for Ujjwala, Saubhagya and Swachh Mission to cater to lower and middle class in providing free LPG connections, electricity and toilets.
  • Under Prime Minister Krishi Sinchai Yojna-Har Khet ko Pani, 96 deprived irrigation districts will be taken up with an allocation of Rs 2600 crore. The Centre will work with the state governments to facilitate farmers for installing solar water pumps to irrigate their fields.
Highlights of India Union Budget 2018

Highlights of Union Budget 2018

  • Under Saubahagya Yojana, 4 crore poor households are being provided with electricity connection with an outlay of  Rs.16,000 crore.
  • MSP for all unannounced Kharif crops will be one and half times of their production cost like a majority of rabi crops: Institutional Farm Credit raised to 11 lakh crore in 2018-19 from 8.5 lakh crore in 2014-15.

Clcik here for More Budget Updates

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What is e-Way Bill? | A Complete Guide on GST E-Way Bill




e-way bill guide

On 16 December 2017, The GST Council has decided that the e-way bill under GST should be introduced in a staggered manner from 1 February 2018 and will be rolled out nationwide from 1 June 2018.

What is E-Way Bill?

The E-Way Bill is an electronically generated bill which is required for movement of goods, for valve exceeding INR 50,000 from one place to another. It should be generated on the e Way Bill Portal before the commencement of movement of goods. Even in case of inward supply of goods from an unregistered person, E-Way Bill is applicable.

The document should be generated online for transport of goods. The e-Way Bill is required for both interstate and intrastate transportations. From 1st February 2018, the e way bill for inter-state transport will be implemented in India, and for the intra-state transport, the rules will be implemented between 1st February to 1st June 2018.

Read also How to Generate e-Way Bill using E-Way Bill Portal | Ways and Rules for Generating e-Way Bill

What is e-Way Bill ? | A Complete Guide to Generate E-Way Bill in GST

What is e-Way Bill? | A Complete Guide to Generate E Way Bill in GST

The E-way bill can also be cancelled if the goods are not transported. The cancellation can be done either electronically on the GST website directly or through a GST Facilitation Centre within 24 hours of the generation of the e way bill. It cannot be cancelled if the generated e way bill has been verified by the transit.

When an e-way bill is generated, a unique e way bill number is allocated and is available to the supplier, recipient, and the transporter.

The Way Bill which was required under the VAT regimes is not necessary if the e Way Bill under GST regimes is generated for the transports of goods. The way bill which was required under the VAT Regime was a physical document that should be generated for the movement of goods. The electronically generated document under GST regime replaces the physical document under the VAT regime.

Read also How to Register on E-Way Bill Portal? Step by Step Procedure

E-Way Bill is required for movement of goods, for valve exceeding INR 50,000 from one place to another

E-Way Bill is required for movement of goods, for valve exceeding INR 50,000 from one place to another

E-Way Bill in Tamil Nadu is mandatory from 1 February 2018.

Features of E way Bill

  • To generate e way bill easily, the user can make masters of suppliers, products, and customers.
  • Multiple forms of e way bill generation for convenience in use
  • Notifications and alert SMS will be forwarded to registered e-mail and mobile number of the users.
  • A unified e way bill will be generated to the goods vehicle taking various consignments.
  • Now it is easy to regulate e way bills generated from users account or on behalf.
  • The user can further make sub-users and roles on concerning e way bill portal for creating the e way bill.
  • Vehicle number can be attached by the Transporter or supplier of goods generating EWB.
  • QR code will be specified on an e-way bill in order to make easy accessibility of information.
A Complete Guide to Generate E-Way Bill in GST

A Complete Guide to Generate E Way Bill in GST

When Should e-Way Bill be Generated?

E-way bill will be generated when there is a movement of goods, for valve exceeding INR 50,000 from one place to another –

  • In relation to a ‘supply of goods’
  • For reasons other than a ‘supply of goods’ ( say a return)
  • Due to inward ‘supply of goods’ from an unregistered person

When goods are transported by a registered person, either acting as a consignee or consignor in his own vehicle, in his own vehicle or hired vehicle, railways or airways, either send goods outside the state or bring goods from outside the state, then e way bill will be applied.

Even in case of inward supply of goods from an unregistered person, either the recipient of supply or the transporter, the E-Way Bill is applicable.

Read also GST Return Filing Software, Hassle Free Invoice Upload To GSTN

For this purpose, a supply should be one of the following:

  • A supply made for a consideration (payment) in the course of business
  • A supply made for a consideration (payment) which may not be in the course of business
  • A supply without consideration (without payment)
  1. Sale – sale of goods and payment made
  2. Transfer – branch transfers for instance
  3. Barter and Exchange – where the payment is by goods instead of in money

Therefore, e-Way Bills must be generated on the common portal for all these types of movements.

E-Way Bill is required for movement of goods, for valve exceeding INR 50,000 from one place to another

E-Way Bill is required for movement of goods, for valve exceeding INR 50,000 from one place to another

Cases when You don’t need an e-Way Bill

The e-Way Bill is not necessary when,

  • The mode of transport is non-motor vehicle
  • Goods transported from port, airport, air cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs.
  • Transport of specified goods (PDF of List of Goods).

Read also GST Invoice Format and Rules | All About Invoicing Under GST

Who should Generate an e-Way Bill?


E-Way bill must be generated for every transportation with goods valuing more than Rs. 50000 to or from a registered person.

Unregistered Persons

Unregistered persons should also generate e-Way Bill. Even the supply is made from an unregistered person to a registered person, the later should meet all the rules as if he/she is a supplier.


Any transporter carrying goods by road, rail or air, etc should generate an e-Way Bill in case the supplier has not generated the e-Way Bill.

Every Registered person under GSTBefore movement of goodsFill Part AForm GST EWB-01
Registered person is consignor or consignee (mode of transport may be owned or hired) OR is recipient of goodsBefore movement of goodsFill Part BForm GST EWB-01
Registered person is consignor or consignee and goods are handed over to transporter of goodsBefore movement of goodsFill Part B The registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01
Transporter of goodsBefore movement of goodsGenerate e-way bill on basis of information shared by the registered person in Part A of FORM GST EWB-01
An unregistered person under GST and recipient is registeredCompliance to be done by Recipient as if he is the Supplier. 1. If the goods are transported for a distance of ten kilometers or less, within the same State/Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01.
2. If supply is made by air, ship or railways, then the information in Part A of FORM GST EWB-01 has to be filled in by the consignor or the recipient.

How to Cancel the generated E way Bill?

In the case, when E way bill not transported to the mentioned place or not transported according to the details in the generated E-way bill within 24-hours of issuance, the bill is cancelled automatically by the common portal.

The cancellation can be done automatically through a common portal or by the order of commissioner through a Facilitation Center. By logging in the common portal using the ID and password of that particular Facilitation Center, the cancellation can be done. But if the bill is verified in transit as per the rule under 138B, the cancellation is not possible.

Read also GST Rate Schedule Chapter Wise For Goods And Services | GST Rate Guide

GST E Way Bill

GST E Way Bill Validity Period According to the Distance

1.Less than 100 km1 Day
2.100 km or more but less than 300 km3 Days
3.300 km or more but less than 500 km5 Days
4.500 km or more but less than 1000 km10 Days
5.1000 km or more20 Days
GST E-Way Bill Validity

GST E Way Bill Validity

An E way bill can be Generated through sources like,

  • Web-based generation through laptop and desktops with the help of browsers.
  • Through Android app on a smartphone and even via SMS from the registered mobile number.
  • Application program interface (API) by connecting consumers IT process with the e way bill process.
  • E way bill toll through bulk generation.
  • By third party service providers.

How to Generate E-Way Bill in Minutes

Click here for More GST E Way Bill Filing Updates

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