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Apart from GST registration, one thing that is going to immediately impact employers for which they are apprehend about is “how do they raise invoice” for the goods supplied or services rendered starting July 1. However, it is actually very simple.
Invoicing forms a crucial function when it comes to the execution of a transaction. The invoice becomes a basic document for recording the sale/purchase in books of accounts.
Invoicing under GST (Supply of Services)
The government has clarified rules of invoicing under GST along with a template of invoice (GST INV-01) covering particulars like supplier’s details, GST tax rates etc. As per the rules, the invoice has to be issued within 30 days of rendering the service.
In the GST regime, two types of invoices (Supply of Services) will be issued:
- Tax invoice : is issued by the registered taxpayers to charge the tax and pass on the credit for taxable services. (Sample attached)
- Bill of supply: is issued by registered service providers rendering of exempt services or who has registered themselves under composite scheme.
If the value of the goods or services supplied is less than INR 10, the supplier may not issue a bill of supply. In such case, however, a consolidated bill of supply has to be prepared at the close of each day in respect of all such supplies.
When services are provided, the service provider is required to issue two copies of the invoice– Original (Purchaser) and Duplicate (Service Provider)
Sample of Tax Invoice (Service):
Based on the rules regarding details required in a tax invoice, a sample tax invoice has been shown below:
# Images sourced from “Clear-tax” website.
Invoicing Under GST (Supply of Goods)
The government has notified rules of invoicing under GST along with a template of invoice(GST INV-01) covering the elements such as supplier’s details, GST tax rates etc that need to be presented.
Here also, Invoice is of two types:
- Tax Invoice: Please have a look at the sample tax invoice format (source Clear tax). However purpose of this document is exactly same i.e. to charge tax & pass on the credit on input
- Bill of Supply is issued where registered supplier needs to supply exempted goods or services or he has registered himself under composition scheme
In case of supply of goods, we raised three invoices, instead of two i.e. Original for purchaser, duplicate for transporter and triplicate will be used for own record.
Sample copy of Invoice for Goods Sold :
# Images sourced from Clear tax website