GST Invoicing Software

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Tally Solutions | Nov-19-2019
  1. What is a GST Invoice?
  2. Who should issue a GST Invoice?
  3. Creating invoices in a GST Invoicing Software
  4. Printing invoices in a GST Invoicing Software
  5. Frequently asked questions

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 the description of goods and/or services, value and tax, at the time of supply. An invoice is a document evidencing the supply of goods and services which becomes the basis for the 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 that provides evidence of the existence of a transaction of supply of goods and/or services. Such invoice issued by the registered taxable person is an essential document to establish a 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 the tax invoices, and thus businesses need to use the best invoicing software.

Who should issue a 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 free invoicing software for small businesses to help them be GST compliant.

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,
  • The total value of goods or services,
  • The 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
  • A signature or digital signature of the supplier or his authorized representative.

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 in 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.

  • 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 intrastate sale, then select sales ledger for local taxable sales and if it is an interstate sales, 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 intrastate sales, select the central and state tax ledger. If it is a sale made to other states, 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.

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 software, such as Tally.ERP 9, an invoice can be printed by just clicking Alt + P in the sales voucher screen. One can even customize the 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.

Frequently asked questions

What is mandatory in GST invoice?

Following are the mandatory fields that need to form part of each GST invoice format:

  • Address, name, and GSTIN of the supplier
  • Name, address, and GSTIN of the recipient if it's registered
  • HSN or SAC for goods and services
  • Invoice type, whether it is tax invoice, supplementary invoice or revised invoice
  • The tax rate for each item
  • Description of goods or services provided
  • Units or quantity of goods and services
  • The tax rate for each item
  • Amount of CGST, SGST, IGST or UTGST in separate columns
  • Supply state and place of supply
  • The total amount of goods and services
  • Delivery address in case it is different from the place of supply
  • In case the reverse charge is applicable, then it should be duly mentioned
  • A digital signature, by the supplier or any authorized person

Are there any restrictions on the GST invoice format?

When a registered taxable person supplies taxable goods or services, a GST invoice is issued. To issue and receive a GST compliant invoice is a prerequisite to claim ITC. If a taxpayer does not issue such an invoice to his customer - who is a registered taxable person, his customer loses the ITC claim and the taxpayer loses its customers.

Find out more about GST invoice, rules and format!

What is the format of GST invoice?

gst-invoice-format

What are the must-have features of GST invoice software?

  • Inventory management
  • Generating GST compliant invoices
  • E-invoice and E-way bill generation
  • Anytime anywhere access to business data
  • Connected services with external portals
  • Easy management of TDS and TCS
  • What are the requirements of GST invoice?

Check out which is the best GST Software for GST Return Filing and GST Billing

What is the rule of issuing an invoice in GST?

  • Minimum amount for which one can raise a GST Invoice
  • Handling purchases from URD - Reverse Charge Invoice
  • Handling advance payments – Receipt Voucher
  • Handling exports effectively - Export Invoice
  • Handling special deliveries - Delivery Challan
  • Handling revisions in the values of invoice already issued – Debit Note / Credit Note

Find out more: https://tallysolutions.com/gst/gst-invoice/

Watch Video on GST Compliant Invoices – TallyPrime GST Invoicing Software


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