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Invoice is a commercial instrument issued by a seller to a buyer. It identifies both the trading parties and lists, describes, and quantifies the items sold, shows the date of shipment and mode of transport, prices and discounts, if any, and delivery and payment terms.
A registered person must issue a tax invoice before, or at the time of removal of goods for supply to the recipient. For supplying services , GST invoices can be issued before, at, or even after the time of supply.
A GST invoice should be issued by a taxable person under GST while supplying goods or services. An invoice for goods must be issued before or at the time of:
In case of supply of services, the invoice must be issued before or after the provision of service but within a period of 30 days from the date of supply of service. In case the supplier of services is an insurer or a banking company or a financial institution, including a non-banking financial company, an invoice must be issued within 45 days from the date of the supply of service.
Input credit
Under GST a tax invoice is an important document. It not only evidences supply of goods or services but is also an essential document for the recipient to avail Input Tax Credit (ITC). A registered person cannot avail of input tax credit unless he is in possession of a tax invoice or a debit note
An invoice or a bill of supply need not be issued if the value of the supply is less than Rs. 200/- subject to specified conditions.
Contents of invoice
There is no format prescribed for an invoice, however,
Invoice rules makes it mandatory for an invoice to have
Following fields.
How to Charge GST on Expenses in Invoice?
Businesses even though registered under GST cannot charge any tax on the invoice issued by them. Such dealers have to issue a Bill of Supply.
A Bill of Supply is issued when GST is not applicable on a transaction or when GST is not to be recovered from the customer.
Bill of Supply should have:
A registered person may, within one month from the date of issuance of certificate of registration and in such manners has been prescribed in the Invoice Rules, issue a revised invoice against the invoice already issued during the period beginning with the effective date of registration till the date of issuance of certificate of registration to him.
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