Checklist for Tax Invoice Preparation under GST

Checklist for Tax Invoice Preparation under GST

GST Law prescribes specific guidelines regarding issue and format of Tax Invoice by registered dealers. Here is a detailed check list of things to keep in mind while issuing tax invoice. Refer to the following list for further details:

  • Invoice Title
  • Name and Address of the Supplier
  • GST Number of the Supplier
  • Tax Invoice Number
  • Date of Invoice
  • Name and Address of the Recipient
  • GST Number of Recipient
  • HSN / SAC Code
  • Description of Goods / Services supplied
  • Rate per unit and Taxable Value of Goods / Services
  • GST Rate
  • Amount of GST Charged
  • HSN / SAC Code wise bifurcation of GST

Invoice Title:

Every invoice issued by a registered dealer in which GST in charged must be titled “Tax Invoice”. Hence, it is compulsory to give appropriate title to your invoice.

Name and Address of the Supplier:

A primary information in a tax invoice is the business name and address of the supplier. Make sure the Trade Name and business address is accurate and as per registered business details.

GST Number of the Supplier:

It is mandatory to mention GST number of the supplier on every invoice. Make sure that GSTIN mentioned on the invoice is correct.

Tax Invoice Number:

Every invoice issued during a financial year must be assigned a unique consecutive serial number. Likewise, Financial Year in which the invoice is issued must also be mentioned in the invoice number.

Date of Invoice:

This is the date on which the invoice is issued. This is one of the most important elements of a tax invoice as GST liability is determined based on the date of invoice. While deciding the date of issue of invoice, rules related to time of supply under GST must be kept in mind.

Name and Address of the Recipient:

It is mandatory to mention name and address of the recipient in the tax invoice. These details must be in accordance with the registered details of the recipient. It is also necessary to mention Pin Code and State Code of the recipient.

GST Number of Recipient:

A recipient of goods / services requires to take Input Tax Credit of the GST charged by supplier in the tax invoice. However, the recipient will not be able to take any credit unless and until his GST number is mentioned in the invoice. Hence, it is utmost important to mention recipient’s GSTIN in the invoice.

HSN / SAC Code:

As per GST law, it is mandatory to mention HSN / SAC code in the invoice for all goods / services supplied. However, dealers having annual turnover of less than 1.5 crore are granted exemption from mentioning HSN / SAC code in the invoice.

Description of Goods / Services supplied:

It goes without saying that description of goods / services supplied must be mentioned in the invoice. Appropriate unit of measurement for goods must also be stated.

Rate Per Unit and Taxable Value of Goods / Services:

Taxable Value is the value of goods / services on which GST is charged. Details of both rate per unit and total taxable value must be specified. Normally, GST is charged on the total taxable value. However, in some specified cases, GST may be charged based on item rate per unit.

GST Rate:

It is mandatory to mention rate at which GST is charged on the taxable value of goods / services. Slabs for the GST rates are 0%, 5%, 12%, 18% and 28%. In case if CGST and SGST are charged instead of IGST then mention rates accordingly.

Amount of GST Charged:

Amount of GST charged must be mentioned in the invoice. Also, details like total GST charged including CGST and SGST must be stated separately.

HSN / SAC Code wise bifurcation of GST:

An HSN / SAC code wise summary must be provided at the bottom of the invoice. The summary must state how many HSN codes are used in the invoice. GST rate wise bifurcation of taxable value and tax thereon should also be provided.

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