Invoicing under Goods and Service tax

Invoicing under Goods and Service tax

invoicing under goods and service tax


Invoice is a very important and special case when it is coming to taxation. When the question is about execution of a transaction the only need is the Invoice. Invoice has two parties involved in it that is a person who is selling and a person who is buying. Invoice is usually carried by the prior team i.e., a person who is selling the goods. Now let us consider if A sells a car to B then an invoice is generated by A. But what does invoice contains?  It contains Sr.No, details of product such as product name, description, quantity, etc along with details of supplier, purchaser, tax charged and other particulars such as discounts, terms of sale etc.

When an accounting happens for any specific company these invoices play a vital role about their purchases and about their sales. These invoices are always tallied by both the parties and then entered in trial balance, profit and loss account and balance sheet and audited.

As we know that GST is about goods as well as for services therefore GST invoices are also for Goods and services differently.  The GSTN has made forward the template  of GST invoices that is GST INV-01 which clearly shows the format of invoicing under GST law.

The GST tax invoice has to be issued by a registered dealer on or before the time when goods are removed for supply (where supply involves movement) and on or before the time when delivery is received by the recipient (where movement of goods is not involved) The GST tax invoice has to be issued by a supplier as soon as when goods are removed for supply and as soon as when delivery is received by the recipient. When emphasis is supply of services the invoice has to be issued issued within 30 days of supply of services.


In GST Scenario there are basically two types of invoices.

  • Tax invoice
  • Bill of Supply

Tax Invoice :

When a supplier is taxable person and he is trading with a taxable buyer then the tax invoice is issued by the supplier that carries all the details about the item sold by him to the buyer.


Bill of Supply :

The only difference between the Tax invoice and bill of supply is that here no tax is added. Because here the supplier is not paying tax or is paying tax under the composition scheme.





A supplier makes three copies of invoices when the goods are being transferred from one place to other. that is :

1st copy:

He issues to the buyer for the goods sold. This is the original invoice.

2nd copy:

He issues to the transport person for him to have a record and for the proof of supplier that he had issued the invoice of goods or of service

3rd copy:

He keeps up with himself for his records at time of audit.

But how does invoice get recognised? When the supplier upload his invoice on GSTN he can obtain an Invoice reference number GSTN. Invoice reference number will be valid for 30 days from the date of uploading. And there all the details regarding that transaction can be monitored.


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