A GST invoice is one of the most crucial documents for your business. Apart from acting as a proof of transactions, it mentions your GST number, which shows you are registered under GST and you pay your taxes.
As a business, you are required to provide a tax invoice to your customers. A tax invoice ensures the customers that their taxes are landing in the right pockets. But how to create GST invoices? A GST invoice generator is a tool that helps you to generate GST invoices without any hassles.
Make a GST Bill Using a Free Online Invoice Generator
TranZact provides you with a free online GST invoice generator tool that helps you to create an invoice online within a couple of minutes. You just need to enter the required information, and a GST-compatible invoice will be ready for download. It also helps you to understand how to generate e-invoice in GST.
You can share a pdf version of the invoice with as many people as you'd like. Also, you can take printouts if you need physical copies of the invoice.
Benefits of Using an Invoice Generator
Reduces paperwork
An online GST invoice generator requires zero paperwork. That means you don't have to worry about keeping dozens of physical copies of invoices. It ensures all your regulatory documentation is digitized and organized over the cloud with 100% data security.
Quick and easy invoicing process
You also don't have to worry about entering every minute detail manually. That makes the invoicing process much faster. An online invoice generator is significantly easier to use, even for beginners.
Enables you to send invoices anywhere in the world
Sending paper bills to domestic and international clients living miles away can be an expensive affair. However, an online GST invoice maker enables you to share a soft copy of the invoice anywhere in the globe at no extra cost.
Reduces costs
With a free GST invoice generator, you not only save smaller costs like printing costs, but also save larger costs in the form of valuable time for your work resources. They can now spend time on more important activities like quality control and business development. You can sign up for free on TranZact to start creating your GST invoice with ease.
Helps in better tracking and monitoring
An online invoice generator keeps a digital record of all your invoices. That lets you track your dues and payments without going through multiple files and papers.
Lowers risk
An online GST invoice generator lowers the risk of delayed payments because you can set up multiple reminders online. Also, there is no risk of losing any documents or information, which is a possibility in the case of paper invoices.
Follows a standardized format of tax invoice
The GST law requires you to follow a standardized format for your GST invoices. An expert online invoice generator tool like TranZact, has a uniform invoice template that complies with all the legal requirements. By using the best online GST invoice generator tool, you can ensure that all your GST invoices have a set format, following tax regulations.
Invoice Under GST
GST invoice is a document issued by the supplier of goods and services to the buyer or recipient. It contains the description of goods or services, their quantities, prices and discounts, if any. Further, it also mentions the date of supply, the delivery address, and the mode of transportation.
A GST bill is important to adhere to all the tax regulations. If any taxpayer fails to comply with all the GST regulations, they are penalized.
Statutory Provisions Related to a GST Invoice
Section 31 of the CGST Act, 2017 contains all the provisions related to GST invoices. The provisions are also contained under Chapter VI: Tax Invoice, Credit, and Debit Notes of CGST Rules, 2017. Every business registered under GST should follow these provisions.
There are certain time limits within which you have to issue the GST invoices for all the supplies made. This aspect is dependent on the specific nature of the concerned goods and services.
If the supply involves the movement of goods, the GST invoice should get issued at the time of dispatch. However, it should be issued at the time of delivery if no movement of goods is involved. And if the supply involves services, the tax invoice should be issued before or after the provision of services (latest within 30 to 45 days).
GST Invoice Format and Mandatory Fields
Section 31 of the CGST Act, 2017 has not prescribed any GST invoice format. However, Chapter VI: Tax Invoice, Credit and Debit Notes of Central Goods and Services (CGST) Rules, 2017 makes it compulsory for a GST bill to include the following information:
- Supplier's name
- Supplier's address
- GSTIN of the supplier
- Description of the goods or services supplied
- HSN code in case of goods and SAC code for services
- Date of issue of the tax invoice
- Quantity and the unit of measurement in case of goods
- The total value of goods/ services supplied
- The taxable value of goods/ services supplied
- Rate of taxes (GGST, SGST, and other taxes if applicable)
- Tax amount charged for concerned taxable goods or services
- The signature or digital signature of the seller/ supplier or their authorized representative (a signature is not needed if an electronic invoice is issued according to the provisions of the Information Technology (IT) Act, 2000)
- QR or Quick Response code with the Invoice Reference Number (IRN) on it
Things to Consider Regarding GST Invoices
Here are some points to remember while you generate GST invoices. Keeping these things in mind, will help you comply with all the GST regulations.
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If the supply involves inter-state movement of goods, you have to mention the place of supply, including the name of the state in your GST invoice.
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For supplies over Rs 50,000, the name and address of the recipient should be mentioned in the invoice.
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You will need three copies of the GST invoice in case of taxable supply of goods. The recipient will get the original copy. The transporter (if any) will keep the duplicate copy. And the triplicate copy will stay with you (the supplier).
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In the case of services, you have to make a duplicate copy of the GST bill. The recipient or buyer will get the original copy, while you will keep the duplicate copy.
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You can decide on the GST invoice format for your business. But don't forget to include the mandatory fields.
Penalty for Non-Compliance in GST
Not issuing a GST invoice will make you liable to a fine of Rs 10,000 or 100% of the tax due (whichever is higher). And you have to pay a fine of Rs 25,000 if you issue a faulty invoice.
Prevent Penalties With TranZact's Online Invoice Generator
TranZact's free online invoice generator is easy to use and is built in accordance with all statutory requirements. Plus, it lets you create multiple copies of invoices and take printouts easily with its free invoice generator tool. Check out the GST invoice maker now and make your invoicing operations smoother.
FAQs
1. What is a Tax Invoice?
A tax invoice is a legal document that the supplier issues to the buyer to show the taxes payable. It also includes other details of the product or service, invoice date, invoice number, delivery address, etc.
2. What is GSTIN and how to get one?
A Goods and Services Taxpayer Identification Number (GSTIN), is a unique PAN-based number issued to every taxpayer registered under GST. You can register for GST on the GST online portal to get your GSTIN.
3. What is HSN code and SAC?
HSN code or Harmonized System of Nomenclature code is a number that helps in the uniform classification of goods throughout the world. And SAC or Services Accounting Code is a numeric code that helps in the classification of services under GST.
4. What is the minimum amount for a GST invoice?
There is no minimum amount required to issue a GST invoice. However, according to the GST Act, a seller may not issue a GST bill if the amount is less than Rs. 200.
5. What is the punishment for a fake GST invoice?
In case of a fake GST invoice, the supplier has to pay a fine of Rs 25,000.
6. Can we verify the GST invoice?
You can check if a GST invoice is original by verifying the GST number or GSTIN. Use TranZact's GST checker to find out if a GST number is authentic. This will tell you whether the seller has issued a fake invoice.
7. Is a GST invoice mandatory?
A supplier may not issue a GST invoice if the buyer or recipient is unregistered or mentions that they don't need an invoice. In case of exempted goods, businesses may issue a Bill of Supply. However, in all other cases, it's always a good practice to issue a GST invoice.
