Essential Information for Goods and Services Tax Invoices

Under the Goods and Services Tax (GST) framework, a registered individual is obligated to issue a tax invoice either prior to or at the moment goods are dispatched to a recipient. For service provisions, GST invoices can be generated before, during, or after the time of service delivery. Furthermore, an e-Invoicing system is progressively being rolled out, introducing additional mandatory fields.

Key Data Points for GST Invoices

Rule 46 of the Central Goods and Services Tax (CGST) Rules specifies the mandatory particulars of a tax invoice. A GST-compliant invoice must include the following 16 items:

1. Supplier's name, address, and GSTIN.
2. A unique, consecutively generated tax invoice number, up to 16 characters, for each financial year.
3. The date of invoice issuance.
4. If the buyer is registered, their name, address, and GSTIN.
5. If the recipient is unregistered and the transaction value exceeds Rs. 50,000, the invoice must state:* The recipient's name and address.* The delivery address.* The state name and its corresponding code.
6. The HSN (Harmonized System of Nomenclature) code for goods or the Service Accounting Code (SAC) for services.
7. A clear description of the goods or services provided.
8. The quantity of goods (number) and their unit of measurement (UQC, e.g., meters, kg).
9. The total value of the goods or services supplied.
10. The taxable value of the supply after applying any applicable discounts.
11. The effective GST rates (separate mention of CGST, SGST, IGST, UTGST, and Cess rates).
12. The total tax amount, broken down by CGST, SGST, IGST, UTGST, and Cess.
13. The place of supply and the name of the destination state for inter-state transactions.
14. The delivery address, if different from the place of supply.
15. An indication if GST is payable under the reverse charge mechanism.
16. The signature of the supplier or their authorized representative.

• Note: These details are also required for values less than Rs. 50,000 if the recipient specifically requests them. For exports to unregistered recipients with a value up to Rs. 50,000, the destination country's name is necessary. HSN code reporting guidelines as of April 1, 2021, are: * Businesses with turnover above Rs. 5 crore must use a 6-digit HSN code for all invoices. * Businesses with turnover less than or equal to Rs. 5 crore must use a 4-digit HSN code for all B2B invoices. This is optional for B2C invoices. Prior to March 31, 2021, the HSN reporting rules were: * Turnover less than Rs. 1.5 crore: HSN code not required. * Turnover between Rs. 1.5 crore and Rs. 5 crore: 2-digit HSN code. * *Turnover above Rs. 5 crore: 4-digit HSN code.

Invoice Endorsements for GST Exports

Certain GST invoices require specific endorsements, particularly for the export of goods and services, or supplies made to Special Economic Zone (SEZ) units or developers for approved operations. These conditions are:

• When tax is paid.
• When supply is made without tax payment under a bond or Letter of Undertaking (LUT).

The endorsement text varies based on these conditions:

• "Supply meant for export/supply to SEZ unit or SEZ developer for authorised operations on payment of integrated tax"
• "Supply meant for export/supply to SEZ unit or SEZ developer for authorised operations under bond or letter of undertaking without payment of integrated tax"

Standard GST Invoice Layout

A typical tax invoice, including an e-invoice, incorporates all 16 mandatory fields stipulated under GST regulations.

• The GST Council has the authority to specify: * The number of HSN digits for goods or accounting codes for services, and the classes of registered persons required to mention them. * *The classes of registered persons exempt from mentioning these codes.

Situations Exempting Tax Invoice Issuance

A registered individual may opt not to issue a tax invoice if:

• The recipient is unregistered, and
• The recipient does not require such an invoice.

Generating Invoice Copies

GST law mandates businesses to retain copies of all invoices. The requirements differ for goods and services:

Invoices for Supply of Goods

These invoices must be prepared in triplicate, clearly labeled as:

• Original Copy: For the recipient.
• Duplicate Copy: For the transporter.
• Triplicate Copy: For the supplier.

Invoices for Supply of Services

These invoices must be prepared in duplicate, clearly labeled as:

• Original Copy: For the recipient.
• Duplicate Copy: For the supplier.