GST Invoice Format Rules & Time Limits

GST Invoice Format Rules & Time Limits

The Goods and Services Tax (GST) has made India’s indirect tax system more consistent, which makes it easier for businesses to follow the rules. The GST statement is an important part of GST compliance because it shows that the goods were sold and the tax was paid. Whether you run a small business, work as a freelancer, or run a big company, you must know the right way to format and send your GST invoices on time to avoid fines and keep your finances running smoothly. This article has all the details on GST Invoice Format Rules & Time Limits.

What is a GST bill?

A seller sends a GST invoice to a buyer. It lists the goods or services that were given, the tax rates that apply, and the total amount of tax that was charged. All GST taxpayers who are registered must send an invoice for any goods or services that are taxed.

Who Needs to Send a GST Bill?

• Anyone who is registered for GST and makes sales that are taxed
• Corporations that provide goods or services to other corporations(B2B)
• People who offer taxed services as freelancers or service providers
• Sellers and sites for online shopping

Required Parts of a GST Bill Format

The GST law says that invoices should have a certain style, but there isn’t a set template. The statement is valid as long as the following important things are present:

• Provider’s name, location, and GSTIN number
• Account name 
• When it came out
• The recipient’s name, address, and GSTIN (if they have one)
• HSN code or SAC code
• Describe the goods or services
• Number of items and units
• The whole amount before tax
• Value that is taxed after any discounts
• CGST, SGST/UTGST, and IGST rates and amounts
• Where the source comes from and whether it’s between states or within states
• Signed or digitally signed by the seller

If the stock is worth more than ₹50,000 and it’s a business-to-consumer deal, you should include the buyer’s name and address, but they don’t have to unless the buyer asks you to.

Different Kinds of GST Bills

• Tax Invoice: Given for things or services that are taxed. It lets the person who gets it claim an Input Tax Credit (ITC). This is what you get when you do not have to pay GST.
• Receiving Voucher: For extra payment given.
• Voucher for Refund: If an advance is paid but no supply is made.
• Debit Note/Credit Note: For changes in the value of a statement after it has been sent out.

How Long Do You Have to Send GST Invoices

When you should send an invoice depends on whether you’re selling things or services:

• Ahead of or during the removal of goods (for moving things), or
• At the time of birth (if there was no movement)
• For services, you have 30 days from the date of service to file a claim.
• For banks, insurance companies, and other business institutions: In 45 days or less
• Special Situations: Goods that are always being sold: The invoice should be sent out on or before the date of the account statement or cash receipt, whichever comes first.

For ongoing services, the bill should be sent out on or before the due date for payment, as stated in the contract.

Rules for Numbering Invoices

• Each bill needs to have a unique 16-character serial number that goes from 1 to 16.
• It can have letters, numbers, or special characters like slashes or hyphens.
• It has to be a different number for each financial year.

Penalty for Not Following Through

If you don’t send the right bills on time, you could face 

• A fine of ₹10,000 will be charged to you
• People who buy things lose their input tax credit
• More careful attention from GST officers

Electronic Billing for GST

E-invoicing is now required for all companies that make more than ₹5 crore a year. These companies need to send invoices through the government site or software that works with the IRP (Invoice Registration site). A Payment Reference Number (IRN) and a QR code are given to each payment.

Get Started with TaxDunia 

A well-kept GST billing system keeps your business ready for audits, builds trust with clients, and makes sure that everything is clear. GST invoice rules must be followed at all times, from using the right style to sending them out on time. If you’re not sure, talking to a skilled accountant or using good software for billing can make the process go much more smoothly. Building a strong financial foundation always starts with the right payment. Reach out to TaxDunia to get legal advice on taxation and finance in India. Ensure meet the compliance so as to avoid penalties and fines, hassle-free services with real-time updates.