GST Invoicing Software
1. What is a GST Invoice?
As per GST law, ‘tax invoice’ or 'GST Invoice' is required to be issued by a registered taxable person showing description of goods and/or services, value and tax, at the time of supply. An invoice is a document evidencing supply of goods and services which becomes the basis for charge of tax.
Thus a, ‘GST invoice’ shall be deemed to include-
- A document issued by an input service distributor, and
- Any supplementary or a revised invoice issued by the supplier in respect of a supply made earlier.
A GST Invoice is a document which provides evidence of existence of transaction of supply of goods and/or services. Such invoice issued by the registered taxable person is an essential document to establish time of supply and for the recipient of goods and/or services to avail input tax credit. All the matching of transactions of inwards and outward supplies is done based on tax invoice, and thus businesses need to use the best invoicing software.
2. Who should issue an GST Invoice?
As per GST Act, GST law a registered taxable person supplying taxable goods shall issue, at the time of supply, a tax invoice showing the description, quantity and value of goods, the tax charged thereon as prescribed.
Thus, the government has also provisioned for free invoicing software for small businesses to help them be GST compliant.
3. What forms part of a GST Invoice?
As per GST Invoice rules, a GST invoice or tax invoice issued by the supplier shall contain the following details-
- GSTIN of the supplier, Name of the firm or business, and address
- A consecutive serial number containing only alphabets and/or numerals, unique for a financial year,
- Date of its issue,
- Name, address and GSTIN/ Unique ID Number, if registered, of the recipient,
- Containing the following details: -
- GSTIN, name and address of the recipient and the address of delivery
- the name of State and its code,
- if such recipient is unregistered, and
- where the taxable value of supply is fifty thousand rupees or more,
- HSN code of goods or accounting code of services,
- Description of goods or services,
- Quantity in case of goods and unit or Unique Quantity Code thereof,
- Total value of goods or services,
- Taxable value of goods or services considering discount or abatement, if any,
- Rate of tax (CGST, SGST or IGST),
- Amount of tax charged in respect of taxable goods or services (CGST, SGST or IGST),
- Place of supply along with the name of State, in case of a supply during inter-State trade or commerce,
- Place of delivery where the same is different from the place of supply,
- Whether the tax is payable on reverse charge,
- The word “Revised Invoice” or “Supplementary Invoice” indicated prominently, where applicable along with the date and invoice number of the original invoice, and
- Signature or digital signature of the supplier or his authorized representative.
4. Creating invoices in a GST Invoicing Software
Any invoice generator software should help businesses to create invoices as per the GST rules.
Sales under new taxation regime can be of two types:
- Local Sales on which CGST and SGST are applicable.
- Interstate Sales on which IGST is applicable.
Before passing a sales entry in Tally, we should first create ledgers relating to sales. Let’s first understand the creation of Ledgers.
- Creation of ledgers
One is required to first create the following types of sales ledger in their respective free invoice software and fill the related information required to create these ledgers:
- Sales related ledgers
- Local sales
- Tax related ledgers
- Stock related ledgers
- Stock Item name and
- Stock grouping
- Party related ledger
- Sundry debtor/ party Account
Note: Under Party account, you must also mention whether the party is composite dealer, consumer, registered or unregistered dealer.
- Sales related ledgers
- Creation of GST Invoice in Tally.ERP 9
Step 1 Gateway of Tally > Accounting Vouchers > F8 Sales. For invoice no, write the serial number of the bill. Step 2 In the data field “under Party A/c” select the party ledger or the cash ledger. Step 3 To select the relevant sales ledger. If it is an intra state sale, then select sales ledger for local taxable sales and if it is interstate sale, then select the sales ledger for interstate sales. Step 4 Select the required stock items and specify the quantities and rates against each. Step 5 In case of intra state sales, select the central and state tax ledger. If it is a sale made to other state, then select the integrated tax ledger (IGST). One can also include additional details as per one’s own requirement in the invoice by clicking F12: Configure such as buyer’s order no, delivery note no etc.
5. Printing invoices in a GST Invoicing Software
Any invoice maker software will have the provision to print invoices as per the GST rules.
In GST invoicing softwares, such as Tally.ERP 9, an invoice can be printed by just clicking Alt + P in the sales voucher screen. One can even customize print configuration by pressing F 12.
To configure the printing of your sales invoice:
- Gateway of Tally >Accounting Vouchers > F8: Sales
- In the sales voucher screen, press Alt + P to print the invoice
- If required, press F12 to configure the printing of GST invoice
Needless to say, businesses will need to adopt invoicing software. Be it a free online invoice software or the best free invoice software, you need to ensure that the invoicing software you use is GST compliant and helps you to carry on your business seamlessly.