Point to Remember While Preparing a GST Tax Invoice
1. Registered Name and Address
The
very first step to preparing your GST Tax Invoice is to include the name and
address of your business. You must be careful while entering these details
because they need to match the registered name and email you gave when you
obtained your GST number.
2. GST Identification Number
(GSTIN)
Your
GST Identification Number is a unique state-wise PAN-based 15-digit number that
you receive when you register under GST. You need to make sure you complete the
GST Number verification before you prepare your tax invoice. Every business and
enterprise has its own unique Goods and Services Tax Identification Number
(GSTIN).
3. GST Tax Invoice Serial Number
The
Goods and Services Tax rules clearly state that the tax invoice must include a
serial number, and the invoice must be numbered consecutively. If you need help
with the tax serial numbers, you use the ‘GST courses near me’ option
and search for a reputed tax institute in your area.
4. Date of GST Invoice
Since
you may have to create many invoices, it may not be very easy to keep track of
all the transactions. To keep your records up-to-date, you need to ensure each
GST invoice is labelled with the correct date. The date you should mention
should be according to when the GST tax invoice was issued.
5. Recipient Details in GST Invoice
Apart
from your own GST details, you will need to include the relevant information of
the customer to whom you are sending the tax invoice. The recipient details
need to include the customer’s name, the address and the unique GST
Identification Number. You must also include the name of the customer’s state.
6. HSN Code or SAC Code
The
Harmonized System of Nomenclature (HSN) Code is used to aid in the
classification of goods, while the Service Accounting Codes (SAC) help in the
identification of services. If you are not sure about the exact HSN or SAC
codes, you can look for an institution that provides GST training in
Noida to learn more about the same.
7. Description of Goods or Services
After
you provide all the necessary GST details about your business and the customer,
you need to include a brief description of the goods and services as well. You
can create a list of the items provided along with the quantity sold. The
description can be brief by stating the important points.
8. Value of Sales and Taxable Value
The
total value of the goods and services, along with the taxable value is the most
important component of the tax invoice. While mentioning the total value of the
supply of goods or services, you need to make sure you take into account the
discount or abatement offered.
9. Current Rate of GST
The
rate of GST applicable may vary based on the transaction. Since taxpayers often
find it difficult to remember the exact Central, State or Integrated tax that
needs to be mentioned, it is probably best that you contact a professional GST
service to prepare the tax invoice. The rate of GST follows 4-tier tax
structure where certain essential items like food, won’t be taxed.
10. Amount of GST Charged
There
a number of factors, such as the type of supply, who the supply is made to, and
where it is made, that will affect the GST Rate. If you are not sure about how
much GST to charge, you can consult a tax expert or look for GST courses near me to learn more.
11. Signature of the Supplier
Finally, even if all the details are accurate
and up-to-date, your GST tax invoice will be invalid if it is not signed by the
supplier. Even if the supplier cannot sign the invoice directly, an authorized
representative can be the signatory. To facilitate the e-filing of GST tax
invoices, taxpayers have the option of using a digital signature to authorize
the invoices.