GST invoice has specific mandatory fields. Issuing incorrect invoice leads to penalty and ITC disallowance. Learn the proper format and rules.
Mandatory Fields
GST invoice must include sequential invoice number (cannot exceed 16 characters), date of issue, supplier GSTIN, recipient GSTIN (if registered), place of supply, HSN code for goods, description of goods or services, quantity and unit, taxable value, tax rates and amounts for CGST, SGST, IGST, cess, and discount if any.
For exports, invoice must show export duty details and binding nature. Tax invoice for services above Rs. 200 must include recipient address. Consolidated collection receipt needs separate rules.
Invoice Numbering
The invoice number must be sequential and cannot repeat within a financial year. Many businesses use format like INV-001, INV-002. The number can include alphabets and numbers but must be unique.
Cancelled invoices must be marked as cancelled but the number cannot be reused. Maintain invoice series continuity to avoid notices from tax authorities.
E-Invoicing
Businesses with turnover above Rs. 5 crores must generate e-invoices through the Invoice Registration Portal (IRP). E-invoice generates IRN and QR code valid for 6 months.
E-invoicing eliminates separate GSTR-1 filing as data auto-populates. Carry the QR code on invoices for authenticity verification. E-invoice preparation is mandatory for specified businesses from October 2023.
Delivery Challan
For goods transportation, delivery challan must accompany the goods. Challan contains supplier details, recipient details, goods description, and vehicle number. The invoice must reference the challan number.
