In general terms, an invoice is a commercial instrument which is being issued by a seller to the buyer. Invoicing plays a very crucial role and is of high importance under GST. Generally, the registered taxable person under GST is required to prepare tax invoice, however, other forms of invoices relevant under GST are mentioned hereunder –

  • Bill of Supply – To be issued by a registered person in case of supply of exempt goods or services. It is also to be issued by the composition scheme registered dealer.
  • Consolidated tax invoice – It can be issued in B2C transactions in case the value of goods / services supplied is less than INR 200.
  • Receipt voucher – In case of advance receipt of payment from the customer, receipt voucher needs to be issued by the GST registered tax payer.

Let us first of all understand the basic / mandatory content of the tax invoice under GST, through which the input tax credit (ITC) can be availed by the purchaser –

As per the GST invoice rules, rule 46 of the Central Goods and Service Tax Rules, 2017, the tax invoice must contain the following particulars –

1. Serial Number –

  • The tax invoice should be numbered consecutively;
  • The consecutive serial number should not exceed 16 characters;
  • The consecutive serial number should be containing alphabets or numerals or special characters;
  • The consecutive serial number should be unique for a financial year;

2. Name, address and GSTIN (Goods and Service Tax Identification Number) of the supplier;

3. Date of issue of tax invoice;

4. Name, address and GSTIN (Goods and Service Tax Identification Number) or UIN (Unique Identification Number), if registered, of the recipient;

5. Name and address of the recipient and delivery address of the consignment, along with the name of the State and State code, in case the recipient is an unregistered person and the value of goods exceeds INR 50,000;

It needs to be noted here that the above details need to be provided even in case if the value of the goods is less than INR 50,000, if the recipient request to mention such details in the tax invoice.

6. Description of goods or services;

7. HSN code of the goods or Accounting code of the services;

8. The quantity of goods and units or unique quantity code;

9. The total value of supply of goods or services or both;

10. The taxable value of supply of goods or services or both taking into account discount or abatement (if any);

11. The rate of tax i.e. central tax, state tax, integrated tax or union territory tax or cess;

12. Amount of tax charged in respect of the taxable goods / services (central tax, state tax, integrated tax or union territory tax or cess);

13. In case of supply in the course of inter-state trade or commerce –

Place of supply along with the name of the State;

14. In case of delivery place is different from the place of supply –

Address of the delivery needs to be mentioned;

15. Whether the tax is payable on a reverse charge basis; and

16. Signature / Digital Signature of the supplier or the authorized representative.

FAQs on GST Invoice Number

Some of the common questions emerging in the minds of the registered taxpayer with respect to the GST invoice, GST invoice number and GST invoice rules is being answered here under –

1. What Is GST Invoice Number? –

Under GST every registered taxable person is required to issue the invoice and as per GST invoice rules, the said invoice is required to be issued in a consecutive serial number. The serial number so mentioned in the GST invoice is said to be a GST invoice number.

2. How Many Digits In A GST Invoice Number? –

As per rule 46 of the Central Goods and Service Tax Rules, 2017, the length of the GST invoice number should not exceed 16 characters, which means, that the GST invoice number can be maximum up to the length of 16 digits.

3. Is It Mandatory To Mention HSN Code In GST Invoice?

HSN stands for the Harmonized System of Nomenclature which is an internationally accepted goods classification system.

The mandatory mentioning of HSN code in the GST invoice depends on the annual turnover in the preceding financial year. The HSN code required while issuing of a tax invoice, based on the annual turnover in the preceding Financial Year, has been specified in notification no. 12/2017 – Central Tax dated 28th June, 2017 and notification no. 5/2017 – Integrated Tax dated 28th June, 2017 and the same is explained in the below table –

Sr. No. Annual Turnover in the preceding FY Number of Digits of HSN code to be mentioned in the tax invoice
1 Up to INR 1.50 Crore NIL
2 More than INR 1.50 Crores to INR 5 Crores 2
3 More than INR 5 Crores 4

4. Is PAN Number Mandatory On GST Invoice?

The separate mentioning of PAN on the GST invoice is not mandatory. Since the 15 digit GSTIN i.e. Goods and Service Tax Identification Number is PAN based number and hence separate mentioning of PAN on the GST invoice is not at all mandatory.

5. Is It Mandatory To Maintain Invoice Serial Number?                                           

Yes, as per the GST invoice rules it is mandatory to maintain invoice serial number through-out the financial year.

6. What Is The Time Of Issuance Of GST Invoice?

In Case Of Supply Of Goods – On or before the date of removal / delivery.

In Case Of Supply Of Services

1. Within a period of 30 days from the date of the supply of service.

2. In case of continuous supply, where the due date can be determined, 30 days from the due date.

3. In case of continuous supply, where the due date cannot be determined, 30 days from the date of actual payment.

4. When there is a cessation of supply before the expiry of the contract, at the time of such cessation.

5. In the case of banking and other financial institutions, the due date will be 45 days.

7. How Many Copies Of Tax Invoice Needs To Be Issued?

  • In the case of supply of service – Two copies –

The invoice should be prepared in duplicate (i.e. two copies) mentioning –

    • Original copy as ‘ORIGINAL FOR RECIPIENT’; and
    • Duplicate copy as ‘DUPLICATE FOR SUPPLIER’.
  • In the case of supply of goods – Three Copies –

The invoice should be prepared in triplicate (i.e. three copies) mentioning –

    • Original copy as ‘ORIGINAL FOR RECIPIENT’;
    • Duplicate copy as ‘DUPLICATE FOR TRANSPORTER’; and
    • Third copy as ‘TRIPLICATE FOR SUPPLIER’.

Author Bio

Qualification: CA in Practice
Company: Taxguru / Sandeep Kanoi & Associates
Location: Mumbai, Maharashtra, IN
Member Since: 27 Feb 2017 | Total Posts: 671
A Blogger by Passion and a Chartered Accountant by Profession. View Full Profile

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4 Comments

  1. Kanwaljit says:

    Dear Sandeep Ji,

    Whether an Unregistered person can issue “Bill of Supply” ?
    In fact what should be the heading of commercial document to be issued by Unregistered person (akin to Tax Invoice for Registered Person) ?

  2. Nitesh Agarwal says:

    Sir,

    As per income tax law, PAN is compulsory for invoices having more than value of Rs. 200000.

    Should we mandatory mention separate PAN above the invoice value of Rs. 200000.

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