GST INVOICE SOLUTION –
GST invoicing solutions can help you easily to sales the goods , reduce outstanding receivables, get deeper insights into the business and reduce the complexities associated with GST return filing. LEDGERS GST invoicing suite integrated with estimates, online payments, receivables management, E Way bill portal and GST filing – can completely streamline revenue cycle management for a small or medium enterprises -sized business.
GST INVOICE FORMAT
Under the GST rules and regulations, all invoices should be issued by the businesses people under the GST contain –
- Name, address and GSTIN of the supplier
- A consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolized as “-” and “/” respectively, and any combination thereof, unique for a financial year.
- Date of its issue
- Name, address and GSTIN or UIN, if registered, of the recipient
- Name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is un-registered and where the value of taxable supply is fifty thousand rupees or more;
- HSN code of goods or Accounting Code of services;
- Description of goods or services;
- Quantity in case of goods and unit or Unique Quantity Code thereof
- The total value of the supply of goods or services or both
- The taxable value of supply of goods or services or both taking into account discount or abatement, if any
- Rate of tax (central tax, State tax, integrated tax, Union territory tax or cess)
- Amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory tax or cess)
- Place of supply along with the name of State, in case of a supply in the course of inter-State trade or commerce
- Address of delivery where the same is different from the place of supply
- Whether the tax is payable on a reverse charge basis; and
- The signature or digital signature of the supplier or his/her authorized representative.
WHEN SHOULD BE ISSUED THE GST INVOICES ?
GST invoice should be issued when payment for goods or services is received or reasonably assured or if the goods or services have been supplied. If goods or services are supplied and payment is not received, then invoice must be issued within 30 days – irrespective of the status of the receivable.
It is important to note that the supplier becomes liable for remittance of GST to the government on the issuance of tax invoice, even if payment is not received from the customer. Hence, if payment is not reasonably assured, and goods or services have not been delivered, an estimate can be issued by the supplier
PROCEDURE FOR ISSUING GST INVOICE
All GST invoices must be prepared in triplicate in case of a supply of goods. The original copy should be marked as ORIGINAL FOR RECIPIENT. The duplicate copy should be marked as DUPLICATE FOR TRANSPORTER, and the triplicate copy should be marked as TRIPLICATE FOR SUPPLIER.
In case of a supply of services, the invoice should be prepared in duplicate. The original copy should be marked as ORIGINAL FOR RECIPIENT, and the duplicate copy should be marked as DUPLICATE FOR SUPPLIER.
UPLOADING GST INVOICE ON GST PORTAL
The serial number of all invoices issued during a tax period should be filed every month in FORM GSTR-1. Also, GSTIN of all recipients registered under GST must be mentioned on GSTR-1 filing for B2B transactions. In case of recipients not registered under GST or B2C transactions, name, address and place of supply should be mentioned for high-value transactions. GSTR-1 filing made by the supplier will automatically be auto-populated in the GSTR-2 filing to be submitted by the recipient of goods or service. Hence, GST invoicing plays a vital role in input tax credit claims for the counter-party.
ADVANTAGES OF USING LEDGERS FOR GST INVOICING
Seamless Estimate to Invoice Conversion
Invoicing is the major core of all revenue cycle management . With LEDGERS, you can start with estimates or quotes and easily convert it to an invoice on receiving payment or delivering goods/services. With our integrated estimates and invoicing solution, you will now be able to easily track estimates that are converted and follow-up with customers for open estimates.
Track Payments and Receivables
Track payments received against invoices, split payments received against multiple invoices and easily reconcile accounts. One-click issuance and reconciliation of payment or cash receipts. Automatic preparation of Accounts Statement with payments reconciliation for end-customer.
Payment Gateway Integration
Integrated the UPI Payment gateway to help you receive the payments through UPI or Credit/Debit card on estimates and invoices. UPI payment mechanism is the fastest growing payment mode in India and supported by a wide range of mobile applications like Google Pay, Whats app, Phoneme and Pay TM.
GST is the product of the biggest tax reform in India which has tremendously improved ease of doing business and increasing the taxpayer base in India by including millions of small businesses. Tax complexities would be reduced due to the abolishing and subsuming of multiple taxes into a single, simple system.
The new GST regime mandates that all entities involved in buying or selling goods or providing services or both are required to register and obtain GSTIN. Registration is mandatory once the entity crosses a minimum threshold turnover or when an individual starts a new business that is expected to cross the prescribed turnover.
GST Registration –
Businesses are required to register the GST if they are falling into one of the following bellow mentioned criteria.
Any service provider who provides a service value of more than Rs. 20 Lac aggregate in a year is required to obtain GST registration. In the special category states, this limit is Rs. 10 lac. Any entity engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40 lac is required to obtain GST registration.
An entity shall register for GST if they supply of the goods is interstate, i.e., from one state to another irrespective of their aggregate turnover. Interstate service providers need to obtain GST registration only if their annual turnover exceeds Rs. 20 lac. (In special category states, this limit is Rs. 10 lac).
Any individual supplying goods or services through an e-commerce platform shall apply for GST registration. The individual shall register irrespective of the turnover. Hence, sellers on Flipkart, Amazon and other e-commerce platforms must obtain registration to commence activity.
Casual taxable persons
Any individual undertaking supply of goods, services seasonally or intermittently through a temporary stall or shop must apply for GST. The individual shall apply irrespective of the annual aggregate turnover.
Any entity can obtain GST registration voluntarily. Earlier, any entity who obtained GST voluntarily could not surrender the registration for up to a year. However, after revisions, voluntary GST registration can be surrendered by the applicant at any time.
The types of GST registration varies depending on the kind of business undertaken and the supply location of goods or services.
This category applies to taxpayers operating a business in India. Taxpayers registering under the normal scheme do not require a deposit and are also provided with unlimited validity date.
Non-resident taxable person
The category applies to individuals located outside of India. The taxpayers should supply goods or services to residents in India. The registration remains active for a period of 3 years.
Casual taxable person
Any taxpayer establishing a stall or a seasonal shop has to register under the casual taxable person scheme. To register as a casual taxable person, the taxpayer shall pay a deposit equal to the amount of GST liability. The registration remains active for a period of 3 months.
An entity should enroll the GST composition scheme to register as a composition taxpayer. Any taxpayer whose turnover is less than by Rs 1.5 Crore can be availed the same facility. Entities enrolled under this scheme can pay a flat GST rate. However, they will not be allowed to claim input tax credit.
The following documents must be submitted by regular taxpayers applying for GST registration.
GST registration is linked to the PAN of the business. Hence, PAN must be obtained for the legal entity before applying for GST Registration.
- Identity proof along with photographs
PAN, passport, driving license, Aadhar card or voter’s identity card can be submitted as identity proof. Photographs of the promoters/ proprietors also need to be submitted.
- Address proof of promoter
Documents like passport, driving license, Aadhaar card, voters identity card and ration card can be submitted as address proof.
- Business registration document
Proof of business registration must be submitted for all types of entities. There is no requirement of submitting this document for a proprietorship as the proprietor and the entity are essentially considered the same. In case of a partnership firm, the partnership deed must be submitted. In case of LLP or Company, the incorporation certificate from MCA must be submitted. The other types of entities like society, trust, club, government department or body of individuals must provide the registration certificate.
Address proof must be provided for all places of businesses mentioned in the GST registration application. The following documents are acceptable as address proof for GST registration.
- Own property- Any document in support of the ownership of the premises like the latest property tax receipt or the electricity bill.
- Rented or leased property- A copy of a valid rental agreement with any document in support of the ownership of the premises of the lessor like the latest property tax receipt or the electricity bill. If the rental agreement or lease deed is not available, then an affidavit to that effect along with any document in support of the possession of the premises like copy of electricity bill is acceptable.
- SEZ premises- If the principal place of business is located in an SEZ or the applicant is an SEZ developer, necessary documents/certificates issued by the government of India are required to be uploaded.
- All other cases- A copy of the consent letter of the owner of the premises with any document in support of the ownership of the premises of the consenter like the municipal tax copy or the electricity bill copy. The same documents can be uploaded for shared property as well.
- Bank account proof
Scanned copy of the first page of bank passbook or the relevant page of bank statement or scanned copy of a cancelled cheque containing name of the proprietor or business entity, bank account no., MICR, IFSC and branch details including code needs to be uploaded.