Billing under GST

In this post, we will be discussing about billing under GST. We will discuss the following topics:

What is a GST Bill (Invoice)?

A bill or an invoice is a document for list of goods sold or services provided, along with details of amount due for payment.

Who will issue the GST Bill?

Any GST Registered business, need to provide GST bill for the sale of goods and/or services to their clients.

What are the mandatory fields in GST Bill?

A GST bill must have the following mandatory fields:

  • Invoice number and date
  • Customer name
  • Shipping and billing address
  • Customer and taxpayer’s GSTIN (if registered)**
  • Place of supply
  • SN code/ SAC code
  • Item details i.e. description, quantity (number), unit (meter, kg etc.), total value
  • Taxable value and discounts
  • Rate and amount of taxes i.e. CGST/ SGST/ IGST
  • Whether GST is payable on reverse charge basis
  • Signature of the supplier

**If the recipient is not registered AND the value is more than Rs. 50,000 then the invoice should carry:

  • name and address of the recipient,
  • address of delivery,
  • state name and state code

When should the GST bill be issued?

The time limit to issue a GST bill, revised bill, Debit note and Credit note is defined in GST Act. Accordingly the due dates to issue the bill to the customer is as below:

Type of Sales Due time
Goods (General sales) On or before date of removal/delivery
Goods (Continuous Supply) On or before date of issue of account statement/payment
Services (General) Within 30 days of supply of services
Services (Banks and NBFCs) Within 45 days of supply of services

What are types of bills available?

1. Bill of Supply

A bill of supply is same as a GST bill except for that bill of supply does not contain any tax amount as the seller cannot charge GST to the buyer.

A bill of supply is issued where tax cannot be charged as :

  • Registered person is selling exempted goods/services,
  • Registered person has opted for composition scheme

If a registered person is selling taxable as well as exempted goods/ services to an unregistered person, then he can issue a single “invoice-cum-bill of supply” for all such supplies.

2. Aggregate Invoice

If the value of multiple bills is less than Rs. 200 and the buyer are unregistered, the seller can issue an aggregate or bulk invoice for the multiple bills on a daily basis.

For example, 3 bills are issued in a day for Rs. 80, Rs. 90 and Rs. 120. In such a case, a single bill, totaling to Rs. 290 can be issued which is called an aggregate invoice.

3. Debit and credit note

A debit note is issued by the seller when the amount payable by the buyer to seller increases due to:

  • Tax invoice has a lower taxable value than the amount that should have been charged
  • Tax invoice has a lower tax value than the amount that should have been charged

A credit note is issued by the seller when the value of invoice decreases due to:

  • Tax invoice has a higher taxable value than the amount that should have been charged
  • Tax invoice has a higher tax value than the amount that should have been charged
  • Supplier refunds the goods to the buyer
  • Services are found to be deficient
Credit and debit note

Credit and debit note

How many copies of GST Bill has to be issued?

For Goods sales – 3 Copies

  • Original for Recipient
  • Dulpicate for Transporter
  • Triplicate for Supplier

For Services – 2 Copies

  • Original for Recipient
  • Duplicate for Supplier

Books Of Accounts & Records to be maintained

Under every tax law, there is a necessity to maintain proper books, records and accounts that will facilitate the assessment and collection of duty as stipulated under the law. Every person providing taxable service shall issue an invoice, a bill, or as the case may be a challan, signed by such person.

Records normally maintained under other laws acceptable:

  • An assessee registered as a company under the Companies Act, is required to maintain proper books of accounts and records as specified in Companies Act.
  • An assessee, who is required to pay income tax, is also required to maintain certain books and records under the Income-tax Act. (Cashbook, Journal, Ledger, Bills, etc.)
  • According to Sales Tax Law, Labor Law, certain books, records, registers, accounts and returns have to be maintained.

Some of the other major records to be maintained are:

  • Correspondence files with the customers/ Client
  • Correspondence files/ records with the supplier.
  • Files containing agreements
  • Files containing bills raised on, receipts issued to customers/clients.
  • Files containing Challans.
  • Credit notes, Debit notes etc.

The importance of doing all the above is:

  • Whether all the taxable services have been properly accounted.
  • Whether all the tax has been properly calculated.
  • Whether the value of taxable service has properly arrived.
  • Whether Tax so calculated has been paid to the credit of government.

This brings us to the end of the post on billing under GST. If you have any questions or comments, drop them in the comment section below.