An invoice is simply a commercial instrument issued to a buyer by the seller. The invoice provides information of both trading parties, quantities of items sold, the date of shipment, the mode of transport, prices & discounts (if any) and the terms of payment & delivery. Among all other invoices, the GST tax invoice plays a very crucial role. Hence, let’s understand what is a tax invoice in GST and how can a GST checklist help.

A] What is a GST Tax Invoice?

An invoice under the GST regime refers to the tax invoice in section 31 of the CGST Act issued in the year 2017. According to this, it is mandatory to issue an invoice or a bill of supply for the supply of all goods or services. Law pertaining to GST has also made it mandatory for all registered business that buys goods or services from an unregistered entity to issue both – a payment voucher and a tax invoice. The invoice generated would largely depend on the category that a registered business falls under when making the supply.

B] How Can a GST Tax Invoice Checklist Help?

  • This GST tax invoice requirements checklist can be used by businesses to ensure they issue valid and accurate tax invoices for the supply of goods and services.
  • The GST tax invoice is an essential document that testifies the supply of goods or services. It also makes it easy for the recipient to get Input Tax Credit (ITC).
  • Every tax invoice issued under GST has to contain certain details, which are mandatory to mention. There is also a time limit within which an invoice should be issued.
  • The GST checklist will also help you verify the invoices received from your suppliers. Getting a complete and accurate invoice is important for businesses to claim input credit on them.
  • GST is chargeable at the time of supply, so the invoice becomes a significant document. The time of supply of the goods/services refers to the date on which the invoice/payment receipt is issued.

C] GST Tax Invoice Checklist

The below checklist will help you maintain a note of all the GST tax invoice requirements you need to take care of while issuing a tax invoice.

Contents of the InvoiceContents of Bill of Supply
Name, Address and GSTIN

The invoice should contain the name, address, and GSTIN of the supplier.

Ensure the business name and address are accurate as per the registered details. Also, mentioning the GST number is a mandate, so make sure the GSTIN is correct.

If the supply is goods, the quantity of goods should be mentioned
Tax Invoice Number

A unique consecutive serial number must be assigned to every invoice issued during a financial year. It can contain alphabets, numbers, or special characters like a slash or a hyphen. The financial year must also be mentioned in the invoice number.
Total Value

The Total Value of the supply of the goods as well as the services.
Invoice Title

Every invoice charged with GST issued by a registered dealer must be titled as “Tax Invoice”
Rate Per Unit and Total Taxable Value

The details of Rate Per Unit and Taxable Value of Goods/Services on which GST is charged must be specified
Date of issue

Mentioning the date is important for it determines the GST liability
Taxable Value of the Supply

The taxable value of the supply, after considering additional charges, discounts, etc
Name, Address & GSTIN of a Registered Recipient

If the recipient is registered, the name, address, and GSTIN or UIN of the recipient should be given. It is important to mention the recipient’s GSTIN in the invoice for he will not be able to take any credit without it. Do not forget to mention the State code and Pin code of the recipient as well.
Rate of tax (CGST, SGST, IGST, UTGST, or cess)

It is necessary to mention the rate of GST charged on the taxable value of goods/services. 0%, 5%, 12%, 18%, and 28% are slabs for the GST rate. Rates should be mentioned accordingly if CGST and SGST are charged instead of IGST.
Name and Address of an Unregistered Recipient

If the recipient is unregistered and the value of the supply is Rs. 50,000 or more, the name and address of the recipient and the address of delivery along with the State name and code is required.
Amount of tax (CGST, SGST, IGST, UTGST, or cess)

The amount of GST charged must be mentioned along with details like total GST charged. CGST and SGST must be mentioned separately.
Interstate Supply

If the supply is interstate, the place of supply along with the State name should be given
Payable Tax

Whether tax is payable on a reverse charge basis
Delivery Address

Address of delivery if it is different from the place of supply

Signature or digital signature of the supplier or an authorised representative
HSN or SAC of Goods or Services

HSN or SAC of goods or services if the supplier’s turnover is more than 1.5 Lakhs

The HSN/SAC code-wise summary should necessarily be provided at the bottom of the invoice, stating how many HSN codes are used in the invoice. Rate-wise GST bifurcation of taxable value and tax should also be provided.
Time Limit For Issuing an Invoice

If the supply of goods involve movement, the invoice should be issued at the time of removal of goods

If the supply is of service, the invoice should be issued within 30 days from the date of supply.
Details of Goods or Services

Description of the goods or services supplied must be mentioned. Units of measurement that seem appropriate for the goods must also be stated.
Copies of Invoice to be Prepared

For the supply of goods, the invoice should be prepared in triplicate: Original for the recipient, duplicate for the transporter, and triplicate for the supplier.

For the supply of services, the invoice should be prepared in duplicate: Original for the recipient and duplicate for the supplier.