When should an invoice be issued?

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

The following are some of the major advantages of using LEDGERS for invoicing:

Seamless Estimate to Invoice Conversion

Invoicing is at the 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 UPI Payment gateway or third-party payment gateways to help you receive 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 apps like Google Pay, Whatsapp, PhonePe and PayTM.