After the implementation of GST, monthly invoice generation is one of the mandatory steps under the GST regime. Every business has to generate these invoices as a proof of the business sales they have done. This way, businesses will be able to manage their sales and will have a record of their sales. It will also lead in reduction of the corruption as their will a record of every sale and purchase done to the customers. Government has designed several GST software with the help of ASPs and GSPs to help people in invoice generation in different formats.
In this post, we list fifteen steps to generate a GST invoice. Take a look.
1. Name and Address
After the introduction of GST in India, invoice generation is mandatory and in order to make a successful invoice you need to fill your name and a valid registered business address. You have to mention the address that you have filled during the registration of GST number. In case, you have multiple offices in different locations, use the address that is mentioned on your registration.
2. GST Number
GST number is obtained after when you have registered under the GST regime. It is a unique alpha-numeric number which is required to verify that you have successfully registered your business under the GST regime. GST number is a 15-digit number whose first two alphabets represents the state code further followed by the PAN number of the taxpayer. Moreover, it make the GST calculation in India simpler and easier.
3. GST Tax Invoice Number
After every invoice, you will be given a specific invoice generation number which is a reference of particular purchase or sales. If in future, the seller faces an issue with the customers, the unique GST tax invoice number can be used to eliminate the doubts.
4. Date of GST Invoice
Date of GST invoice is the most important thing to mention in the GST invoice as it not only helps in tracking the sales or purchase but also makes easier to find out the customer details.
5. Recipient Details
While generating the GST invoice it is important to include all the necessary details of the recipient such as name, GSTIN number, date, address of the customer. It is also mandatory to include the name of the state where the purchase has been made and to which state recipient belong.
6. HSN Code or SAC Code
HSN code refers to Harmonized System of Nomenclature and is a unique code assigned to every product which is accepted internationally. SAC code, on the other hand, is the Service Accounting Code which is used for the services. This code is adopted by the Central Board of Excise and Customs (CBEC) in order to identify the services that business provides. Both these codes are mandatory to mention in the GST invoice, if you’re selling a product or a service.
7. Description of Goods or Services
A GST invoice must also contain a well-written description of goods and services including the quantity of the goods and services sold or provided and to whom.
8. Total and Taxable Value of Sales
Total and taxable value of sales is one of the most important components of the GST tax invoice. The information of both the values of sale: total and taxable needs to be clearly separated on the invoice. However, if there is some kind of discount on the sales of product or service, it needs to be mentioned prior to the total value of sales.
9. Rate of GST
After the introduction of GST in India, every product or service has given different GST rates. The GST regime is a 4-tier tax structure which varies according to the transaction done by the customer. For instance, daily needs products are kept under the lowest taxation rates category whereas the sin goods and luxury items are categorized in the higher GST rate slab.
10. Signature of the Supplier
Signature of the supplier on the invoice is a kind of declaration that all the details are valid and hence they have been signed. A digital signature can also be used in the invoice.
If you’re a business owner, it’s important for you to get a GST number by registering your business under the GST regime. This way, you make your business, effective, efficient and more transparent for the taxation law. Therefore, make sure you extend your business keeping in mind the GST rules o that you can move towards progress without any difficulties. It reduces the GST calculation in India up to a great extent.