Invoicing forms a crucial function when it comes to the execution of a transaction.

On
every sale/purchase an invoice is issued by the supplier i.e person making the sale.
The invoice contains S.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.

Based on the same invoice the seller and buyer make entry in their books of
accounts. When audit (link) is conducted, the invoices are rechecked for their
accuracy(this process is called vouching) as invoices are considered as primary
documents based on which other documents are prepared such as trial balance,
profit and loss account and balance sheet.
Based on the tax invoices only purchaser can claim input credit.
The government has notified rules of invoicing under GST along with a template of
invoice (GST INV-01) covering the elements such as suppliers details, GST tax
rates etc that need to be presented. In this section we will be covering all aspects of
invoicing under GST.

Format of Invoice
Based on GST Invoice Rules (Rule 5), 2016 issued by the Central Government, two
kinds of invoices can be issued under GST namely tax invoice and bill of supply.
Find here GST invoice format for supply of goods and GST invoice format for supply
of services along with details such as number of copies to be issued, their specific
uses etc.
Time Limit to Issue Invoice Under GST
The GST Model law has defined the time limit for issue of GST tax invoices, revised
bills, debit notes and credit note. In normal case, 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).
In case of supply of services the invoice has to be issued issued within 30 days(45
days in case of banks and NBFCs) of supply of services.

How to Revise Already Issued Invoices

As per the revised GST Model Law section 28(3a) revised tax invoices can be issued
by a registered taxable person within one month from issuance of certificate of
registration i.e. GST Registration. It will be issued against the invoice already issued
during the period starting from the effective date of registration till the date of
issuance of certificate of registration to him.

What is Bill of Supply?

Tax invoice is generally issued to charge the tax and pass on the credit. In GST
there are some instances where the supplier is not allowed to charge any tax and
hence a Tax invoice cant be issued instead another document called Bill of Supply
is issued.

What is Debit Note & Credit Note?

Where original tax invoice has been issued and taxable value/GST tax amount in the
invoice exceeds/falls shorter than the actual taxable value/tax amount, in such cases
the supplier can issue debit/credit note. Under this section we will cover the cases
where debit notes/credit notes can be issued, the format, particulars to be included
etc. We will also understand the difference between a revised invoice and a
supplementary invoice.
Note: Supplementary tax invoice is issued by taxable person in case where any
deficiency is found in a tax invoice already issued by a taxable person. Debit note is
also considered as a supplementary invoice.