How is the GST invoicing done in India?

How is GST defined?

Goods and Service Tax (GST) was executed in India to eliminate other sorts of charges. Earlier, paying a specific amount of tax for different bills was obligatory. What made this different was that all the services and products came with their own set of tax prices. The GST scheme, on the other hand, has come up with a single tax rate for all products and services, thereby eliminating all the indirect forms of taxes. The central premise of GST invoicing is to abide by the saying “one nation, one market, one tax”. Therefore, in brief, GST provides one single rate of tax for the entire nation.

GST Invoicing and its Different Types

An invoice, in other words, is a bill. This bill consists of the number of services and goods provided. It also comprises the amount of cash still left to pay.

Tax invoice

A tax invoice is a document that is issued when a supplier who can pay, supplies different goods and services.

The supply Bill

The most fundamental yet crucial idea of a tax invoice is charging tax from the buyer on behalf of the government. Nonetheless, there lie a few exceptions. One of these exceptions is when the producer is prohibited from charging for the tax. Therefore, it is impossible to issue a regular tax. The Supply bill can only be issued in two cases:

  • Producers getting charged tax for the composition scheme.
  • Supplying spared services and goods.

The Time Limit Given to issue an Invoice

A particular time to issue an invoice under the invoicing rule of GST differs from product to product or service to service.

Taxable goods

  • Movable- At the time or before the removal of goods, an invoice is to be issued.
  • Immovable- At the time or before the time of delivery of goods, an invoice is issued.

Taxable service

A deadline period of 30 days is given to issue an invoice from the date of supply of products or services.

Reverse charge

A citizen of the country who is liable to pay tax under reverse charge can issue an invoice concerning goods or services that are received by him.

Supply of services is continuous

There is a fixed due date of payment. A 30 day deadline period is granted to issue an invoice from the due date of receiving the payment.

There is an unspecified due date of payment

A deadline period of 30 days is given to issue an invoice as soon as the payment is collected.

Payment on completion of the event

Within 30 days of completion of the event, an invoice is to be issued.

Supply of the services

It is necessary to issue the invoice as soon as the stock ceases.

Goods supplied based on validation

GST invoicing must be done before or at the time when the supply has been completed. It advised issuing an invoice as early as possible. Therefore, it is essential to issue an invoice for at least six months, starting from the date of removal. In the case of financial institutions, banks, and NBFCS- 45 days are given to issue an invoice.

Components that need to be included for GST invoicing

The purpose of a tax invoice is to charge the suppliers tax. A GSTR is a specific return that has to be filled by each taxpayer at the time of issue. To be on the safer side, here are a few of the crucial details that should be included in your GST invoice.

  • The date and number of your invoice
  • Name of the customer
  • Proof of address for billing and shipping process.
  • GSTIN of both the taxpayer and the customer
  • The venue of supply
  • The SAC code
  • Description of the products
  • Discounts and other similar components
  • IGST/CGST/SGST tax rate
  • Check if GST can be paid based on reverse charge
  • The supplier’s signature

GSTR-9

GSTR-9 is an application to be filled every year by the taxpayers who have registered under the GST. It is a sum-total of the quarterly or monthly returns of GSTR-3B, GSTR-1, and GSTR-2A that were filled in the specific year. Although this return is quite complicated, it helps in an extensive analysis of your data to ensure crystal clear disclosures.

Why Trust KhataBook?

KhataBook is a promising online portal that can help you simplify your life by managing your records and business. What is interesting about this application is that you can pay service tax at the convenience of sitting at home. All you have to do is browse through the app and follow the instructions diligently.

Given below are a few promising factors of this platform that will help you determine why it is beneficial.

  • KhataBook provides a platform that is intended to make your life a bit simpler. You can get complete assistance to manage your bank accounts. Moreover, reviewing your customer transactions can be done with ease.
  • KhataBook provides its users with a report generator. This report generator helps in analyzing your finances with which you can become a skilled entrepreneur. Moreover, you’ll learn to make much more strategic and robust business-related decisions.
  • One of the most pleasing components of KhataBook is that all your transactions have an automatic back-up technology. Therefore, you don’t have to worry about losing your phone because all your data will remain safe through this app.
  • The notification reminder that is free of cost will remind you timely of your due payments.

Therefore, paying GST online is advantageous. Online portals give you the benefit of transferring your funds in no time, proper maintenance of your records by none other than the income tax Department, and the privilege of conveniently checking your fund transfer status online. GST is one of the most brilliant schemes implemented by the Government to raise the economic situation of our country. Paying and issuing your GST invoice will undoubtedly be beneficial.

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