Tax Invoice

There are lots of rumors spread in the business class relating to tax invoices under GST. Two myths which need to be busted are digital invoices under GST and mandatory HSN Codes.

The GST law has not mandated that invoices should be raised online. There is no such requirement under GST Act. The government has notified GST rules which required only few additional details which must be mentioned in invoice such as HSN Code, Place of Supply etc.

However, HSN is also not required if turnover is below 1.5 crores. If turnover is between 1.5 crore to 5 crores, only 2 digits of HSN code is required. But if turnover is above 5 crore, then 4 digits of HSN code will be required in invoices.

Contents of Tax Invoice:

The contents of tax invoice are:

(a) Name, Address and GSTIN of the supplier.

(b) A consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year.

(c) Date of its issue

(d) Name, Address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is unregistered and where the value of taxable supply is fifty thousand rupees or more

(e) Name, Address and GSTIN or UIN, if registered of the recipient

(f) HSN code of goods or Accounting Code of services

(g) Description of goods or services

(h) Quantity in case of goods and unit or Unique Quantity Code thereof

(i) Total value of supply of goods or services or both

(j) Taxable value of supply of goods or services or both taking into account discount or abatement, if any

(k) Rate of tax (Central tax, State tax, Integrated tax, Union territory tax or cess)

(l) Amount of tax charged in respect of taxable goods or services (Central tax, State tax, Integrated tax, Union territory tax or cess)

(m) Place of supply along with the name of State, in case of a supply in the course of inter-State trade or commerce

(n) Address of delivery where the sane us different from the place of supply

(o) Whether the tax is payable on reverse charge basis

(p) Signature or digital signature of the supplier or his authorized representative

(q) HSN Code (for the class of persons as may be required)

(r) In case of export of goods or services, invoice shall carry a endorsement “SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST” or “SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF IGST” and in place of details specified in clause (e), shall contain the following details: