Invoicing under the GST Law

Invoicing under the GST Law [Section 31 of CGST Act]

Invoice is a document which records the terms of an underlying arrangement between parties. An invoice, among others is required to be issued for every form of supply such as sale, transfer, barter, exchange, license, rental, lease or disposal.

Supplier of taxable goods is required to issue a tax invoice:
a.      Before or at the time of removal of the goods where the supply involves movement of goods or
b.   Before or at the time of delivery of the goods to the recipient where the supply does not involve movement of goods.

Supplier of services is required to issue tax invoice
a.      Before provision of service
b.      After provision of service but within specified time

Changes in tax invoice to be issued:

Mandatory Information
Additional information that may be part of invoice
·         Supplier’s Name, Address and GSTIN
·         Recipient’s Name, Address and GSTIN
·         Consignee’s Name, Address and GSTIN
·         Invoice Number and Date - a consecutive serial number not exceeding sixteen characters unique for a financial year
·         Description, HSN /SAC of goods or services
·         Place of Supply
·         Total and taxable value of Invoice
·         Rate of tax and tax amount charged – Separately for CGST, SGST, IGST, UTGST and Cess
·         Signature or digital signature of the authorised signatory
·         Tax payable on reverse charge basis, if applicable
·         Nature of Supply
·         Type of Supply
·         Time of Supply and removal
·         Supplier’s PAN, CIN, Telephone number, E-Mail ID, website address
·         Details of Transport
·         If any additions or exclusions from total value of supply

Notification No 12/2017-Central Tax has provided the following relaxation in respect of mentioning the HSN code in the invoice for supplier of goods

Sl. No
Annual Turnover in the Preceding Financial Year
No of Digits of HSN Code
1.
Upto rupees one crore fifty lakh
Nil
2.
More than one crore fifty lakh and upto rupees five crores
2
3.
More than five crores
4


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