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GST Invoice Format: What Every Business Owner Must Know

Updated: May 24


GST Invoice Format: What Every Business Owner Must Know

GST invoices are essential for record-keeping and transparency. GST invoices are more than just a record-keeping document for business owners. They provide the foundation of the GST invoicing requirements, facilitating the smooth transfer of input tax credits from producers to final customers. Every time a B2B or B2C transaction takes place, a GST invoice has to be sent, as required by the GST authorities. Various tools can be used to design it based on your needs. The instructions for creating and downloading GST invoice formats in Word, Excel, and PDF are provided in this article. The primary goals of this guide are to clarify the fundamentals of GST invoicing, such as the need for compliance with GST billing laws, the format of invoices, and the role that technology plays in expediting the procedure.

 

Table of Contents

 

GST Bill and its Key Components

A registered supplier will present their consumers with a GST invoice that includes information about the goods or services they have provided, the total amount charged, and the applicable GST. The GST invoice is an essential document for claiming input tax credit (ITC) and acts as evidence of the provision of goods or services. Every sale made by a GST-registered firm requires you to send out a GST invoice. It lists all of the products and services you have given the customer, together with the price they have to pay. The GST law also requires a correct GST invoice. Here are the key components of a GST bill:

  • Name, address, and GSTIN of the supplier

  • Consecutive serial number for a financial year (unique)

  • Issuing date

  • Name, address, and GSTIN/UIN (if registered) of the recipient

  • Address and state code of the recipient if unregistered (for a value exceeding ₹50,000)

  • Description of goods or services

  • Quantity for goods/Unique Quantity Code

  • HSN code for goods sold/Accounting Code for services sold

  • The total value of supply

  • Taxable value of supply 

  • Tax rates (central, state, union territory, integrated, or cess)

  • Tax amounts 

  • Place of supply with the name of the state for inter-state trade

  • Delivery address if not the same as the site of supply

  • Indication of applicability of reverse charge

  • Signature or digital signature of the supplier

For the invoice to be legitimate and to make the Input Tax Credit (ITC) claim process run smoothly, it must follow the official GST format. ITC refusal, fines, and litigation can result from noncompliance.

Business HSN code reporting is as follows as of April 1, 2021: 

  • All invoices with a turnover of more than Rs. 5 crore must have a 6-digit HSN code. 

  • All B2B invoices with a turnover of less than or equal to Rs. 5 crore need a 4-digit HSN code. 

  • For B2C bills, this reporting is not required, though. 

Previously, the reporting for businesses was as follows until March 31, 2021. 

  • Less than 1.5 crores in revenue: HSN code is not necessary to be stated.

  • With a turnover of 1.5 to 5 crores, a 2-digit HSN code may be used. 

  • Use of a 4-digit HSN code is required for turnover over 5 crores. 


GST Invoice Format for B2B Businesses

The business-to-business (B2B) model refers to the exchange of goods and services. In order to do this legally, the B2B invoice format in GST offers the foundation upon which all the necessary information is arranged, such as the recipient's and seller's HSN codes and GSTINs. GST Invoice


Format for B2C Businesses

Sales of products or services to final consumers take place directly under the B2C model. The structure for listing all sales information, such as price, quantity, total amount, and tax, is provided by the B2C invoice format in GST; however, the recipient's GSTIN is not included. 


GST Invoice Format for Export of Goods and Services

An export invoice's details are the same as those of a tax invoice. However, if the destination is not registered and the value of the supply exceeds Rs. 5,000, the name of the country must be provided on the export invoice in place of the state name and code. Furthermore, the following guidelines must be followed:

  • According to the GST Rules, the invoice must have an endorsement if goods or services are being exported. 

  • A shipping bill is an additional crucial document that needs to be sent with the export invoices. Exporters are entitled to a return of their accumulated Input Tax Credit (ITC) for the tax period under the terms of the GST Law. When processing refund requests, shipping expenses are given first priority by the GST authorities. Therefore, in order to apply for a refund, one must be careful to ensure that export invoices are always accompanied by the appropriate shipping bill.


Steps to Create GST Format in Excel 

  • Launch Microsoft Excel and choose File from the menu. After selecting "new," press "blank workbook." 

  • The gridlines must be taken out next. Select "view" and ensure the "gridlines" column is not checked. 

  • After finishing the previous step, add your company's logo and any relevant data, like your address, business name, GSTIN, and phone number. 

  • Enter the client's information. This is a one-time process because Excel will keep this data for use in future transactions. 

  • Enter the details of the products or services sold. Add information about the pricing, the amount total, and the quantity.

  • Complete the procedure by providing your bank information, your selected method of payment, and the deadline, so completing the main goal of the GST invoice.


Steps to Download GST Invoice in Excel

  • Open the Excel file that you produced as a GST invoice. 

  • Choose the section of the GST invoice that you wish to download, hit "Ctrl+P," and then select "Print." 

  • Select an appropriate folder to download the GST bill format in Excel after selecting the "Print" option.


Steps to Create GST Format in Word

  • Launch Microsoft Word and start a new document from scratch. 

  • Inserting tables is the next step. To do this, click the "insert" tab and select the "table" option. The number of rows and columns can be adjusted to meet the needs of the GST invoice. Make necessary adjustments to the column space to prevent an untidy invoice. Make the necessary changes based on the information that needs to be included. 

  • Enter your company's information, including name, contact information, address, pin code, GSTIN, and so on. Then, enter the transaction information, including the date of the purchase, the invoice date, the due date for payment, and the order number. Incorporate the customer's information as well, then save the file. 


Steps to Download GST Invoice in Word

  • Click on the prepared invoice in Microsoft Word after opening it. 

  • Select "file" from the menu in Word's upper left corner.

  • Select "download" from the menu. 

  • Select "Microsoft Word," and a download of your GST invoice will occur. 


Steps to Create GST Format in PDF

  • To create a GST invoice, use Microsoft Word, Excel, or other invoicing programme. 

  • Add tables in the same way as you did in Word or Excel, based on your needs. 

  • Give the firm’s information, such as the email address, GSTIN, name of the company, and PIN. 

  • Include a logo to give the invoice a more polished appearance. 

  • At this point, give the consumer information such as the pin code, email address, and GSTIN number. 

  • Enter the transaction information here, such as the IFSC code, bank account number, and method of payment. 

  • Follow the following instructions to download the invoice. 


Steps to Download GST Invoice in PDF

  • Select the "file" option located in the Excel or Word file's upper left corner. 

  • Your invoice will download after you click the "download" option and choose "PDF document" from the drop-down menu. 


Conclusion

For any firm to operate effectively and continue to comply with tax laws, it is imperative that they remain aware of the specifications for GST invoices. Businesses should carefully follow the tax invoice requirements, making sure that they are accurate and complied with, in order to guarantee compliance and prevent problems with tax authorities. This will enable their company to run smoothly. Effective use of technology can greatly improve productivity throughout the process. 


FAQ

Q1. What is the format of the GST invoice?

There is no specific format for GST that is mandated by the GST authorities. Nonetheless, the GST invoice needs to have a number of details, such as the company name, the number of products sold, bank account information, clientele, etc. 


Q2. How many invoice formats are there under GST?

GST invoices can be prepared in Word, Excel, or PDF for B2B and B2C transactions.


Q3. How does invoice format compliance affect GST filing?

Complying with the correct invoice format guarantees easy GST filing and Input Tax Credit claims. During tax audits and assessments, it reduces errors and discrepancies.


Q4. What happens if my GST invoice is not compliant?

Invoices that do not comply with the GST Invoice Requirements may result in penalties, disallowed claims for Input Tax Credit, and even possible legal action.


Q5. Can I issue a handwritten GST invoice?

Yes, but to ensure compliance for auditing reasons, it must fulfill all tax invoice essentials, including GSTIN, dates, supplier information, and tax calculation.


Q6. How do I rectify a mistake in a GST invoice?

Release a credit or debit note that has been updated to comply with the GST Billing Regulations; make sure that the two documents are mutually referenced for clarity.


Q7. What are the GST billing regulations for services?

Invoices for services must be paid within 30 days of completion. In order to comply with GST requirements, they must specify the service, rate, tax, and place of supply in full.


Q8. Is digital signature mandatory for GST invoicing?

Physical signatures are also permitted, although digital signatures are preferred for security and authenticity in accordance with invoice format compliance.


Q9. What is HSN in GST bill format?

Harmonised System Nomenclature, or HSN for short, is a standardised system of classification for products and services. GST invoices must have this code to identify the delivered items. 


Q10. Are there special GST invoice requirements for exports?

Yes, to comply with special GST Billing Regulations for exports, export invoices must state "Supply Meant for Export" and include shipping bill details. 


Q11. How often should I reassess my GST invoicing process?

Periodic evaluations guarantee continuous adherence to GST Invoice Requirements, accommodating modifications in GST Billing Regulations, forms, or tax legislation.


Q12. What is the composition scheme GST bill format?

Payment bills are issued by taxpayers under the composition plan, not invoices. These bills do not include specifics like CGST/SGST; instead, they incorporate the composition tax rate and amount. It is required that they clearly state, "composition taxable person, not eligible to collect tax on supplies."



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