Can I make sales under GST without issuing an invoice?

Any business registered under GST must issue an invoice when it sells goods or services to its customers. Depending on the nature of registration and the nature of supply, the business should issue a sales invoice, bill of supply, credit note or debit note.

Sometimes the goods are moved from one place to another but actual sale is not taking place. In those cases, the seller should issue a delivery challan.

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What is a Delivery Challan in GST Invoice?

Delivery Challan is a document issued when the goods are to be transported without an Invoice. The seller issues it at the time of removal of goods in the following cases:

  1. Supply of liquid gas where the quantity at the time of removal is not known
  2. Transportation of goods for job work
  3. Transportation of goods for reasons other than by way of supply
  4. Goods notified by the GST Council

A Delivery Challan is prepared in triplicate:

  1. Original for Consignee
  2. Duplicate for Transporter
  3. Triplicate for Consignor
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The GST RollerCoaster
The GST return filing due date is extended so many times that it feels like running in an endless marathon
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As per the GST Invoice Rules, the supplier is free to design the format of a Delivery Challan. However, it should have the following mandatory details:

  1. Date of the Delivery Challan
  2. A Serial number, containing alphabets or numerals or special characters like hyphen or dash (-) and slash (/) unique for a financial year
  3. Name, Address and GSTIN of the consigner, if registered
  4. Name, Address and GSTIN or UIN of the consignee, if registered
  5. HSN Code and description of goods
  6. Quantity (provisional, where the exact quantity being supplied is not known) [Read More: List of Unit Quantity Codes (UQC) under GST]
  7. Taxable Value of Supply
  8. Tax Rate and tax amount (Central tax, State tax, Integrated tax, Union territory tax or cess)
  9. Place of Supply [Read More: List of State Codes under GST]
  10. Signature

FAQs

Is GST number mandatory on invoice?

As per the law, it is mandatory to have the GST number on the invoice. If the GSTIN isn’t there, a seller shall not be eligible to charge GST from the customers.

How many types of GST Invoices are there?

There are 8 types of GST Invoices, which are as follows:
– Delivery Challan
– Tax Invoice
– Bill of Supply
– Receipt Voucher
– Refund Voucher
– Payment Voucher
– ISD Invoice
– Debit Note and Credit Note.

Can an invoice be Cancelled?

Ideally, one should not cancel their invoice. However, in case it has been deleted and the invoice is needed to be rescinded or amended, a credit note will usually do the job.

What are the details required in a Credit/Debit Note under GST?

A Credit Note or Debit Note under GST is a document which a seller issues to the buyer for making an adjustment to the original invoice issued.

  • Credit Note is issued when the value of the invoice reduces. The buyer is liable to make lesser payment to the seller after adjusting the value of credit note from the original invoice issued to the buyer.
  • Debit Note is issued when the value of the invoice increases. The buyer is liable to make more payment to the seller after adjusting the value of debit note from the original invoice issued to the buyer.

Details that a Credit/Debit Note should have in GST

The supplier is free to design the format provided it contains all the mandatory details prescribed by the GST Invoice Rules.

  1. Seller’s details
    • The legal name of the business
    • The registered address of the business
    • GSTIN of the state from which goods or services are being supplied
  2. Buyer’s details
    • The legal name of the business
    • The registered address of the business
    • GSTIN of the state to which goods or services are being delivered
    • If the registered address is different then a delivery address is to be provided.
  3. Document details
    • Nature of the document – whether Credit Note or Debit Note
    • Note Number – A serial number, containing alphabets or numerals or special characters like hyphen or dash (-) and slash (/) unique for a financial year
    • Date of issue of Credit Note or Debit Note
    • Details of Original Invoice – Invoice Number and Date of the original Tax Invoice or Bill of Supply
    • Place of Supply – Name of the state as per the place of supply rules which is generally the state of the buyer. [List of State Codes under GST]
  4. Item details
    • HSN Code of Goods or SAC Code of Services based on the turnover limit applicable to the seller
    • Item name having a description and quantity of good or service [List of Unit Quantity Codes (UQC) under GST]
    • Item Rate – the price of the good or service
    • The taxable value of supply of goods or services or both, taking into account the discount or abatement if any
  5. Tax details
    • 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 (CGST, SGST, IGST, UTGST, Cess)
  6. A signature or Digital Signature of the supplier or his authorized representative

FAQs

Can credit note be issued without GST?

It is important to note that Credit Notes are only issued to adjust the taxable value and not issued for adjusting tax in the books of accounts. However, the Tax liability of the supplier cannot be adjusted if the credit note is issued after the due date.

Is there a time limit for credit note under GST?

Yes there is a time limit. Section 34(2) of the CGST Act dictates that a Credit note for exchange of goods and services can be issued for any registered dealer up to a period of Six Months.

Who can issue a Debit Note?

The supplier can issue a Debit Note if the value of goods in the Invoice is less than the actual value or the rate of GST or Tax amount charged is at a lower rate than what is applicable.

What are the details required in a Tax Invoice under GST?

Tax Invoice is the document issued by a seller to a buyer on the sale of goods or services. Moreover, the supplier is free to design the format of the Invoice. However, it must contain all the mandatory details prescribed by the GST Invoice Rules.

Tax Invoice Details needed as per GST Invoice Rules:

  1. Seller’s details
    • The legal name of the business
    • The registered address of the business
    • GSTIN of the state where the supply of goods or services takes place
  2. Buyer’s details
    • The legal name of the business
    • The registered address of the business
    • GSTIN of the state where the delivery of the goods or services takes place
    • Delivery address if is different from the registered address
  3. Invoice details
    • Invoice Number – A serial number, containing alphabets or numerals or special characters like hyphen or dash (-) and slash (/) unique for a financial year
    • Date of Invoice
    • Place of Supply – Name of the state as per the place of supply rules. It is generally the state of the buyer. [List of State Codes under GST]
  4. Item details
    • HSN Code of Goods or SAC Code of Services as per the turnover limit applicable to the seller
    • Item name describing good or service sold
    • Quantity in case of goods and UQC i.e. Unit Quantity Code [List of Unit Quantity Codes (UQC) under GST]
    • Item Rate – the price of the of good or service
    • The taxable value of supply of goods or services or both, taking into account the discount or abatement if any
  5. Tax details
    • 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 i.e. CGST, SGST, IGST, UTGST, Cess
    • Whether the tax is payable on a reverse charge basis
  6. Total value of supply of goods or services or both
  7. Signature or Digital Signature of the supplier or his authorized representative
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GST Number Search: Verify GST Number or GSTIN online
Enter GST number or GSTIN (GST Identification Number) and verify GST details online. GST Number or GSTIN is a unqiue 15 digit number allotted after GST Registration.
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Sample Tax Invoice

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GST Application Reference Number or ARN is generated after GST Registration Application. Track GST Application Status for GST Number or GSTIN using ARN.
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FAQs

Is it compulsory to write tax invoice on GST invoice?

Yes, Tax Invoices have to be compulsorily issued by the suppliers of Goods and Service to act as a proof for the completion of the Transaction.

What is the use of tax invoice?

Tax Invoice is issued by the supplier as a token of proof for the taxable supply of goods & services. Therefore it mainly contains details of the description of the goods, the number of goods, the tax charged, etc. Hence, tax Invoice will serve as evidence in case of any Tax disputes.

Can invoice be revised under GST?

Yes, a Revised Invoice can be issued under GST, but with a condition that it has to be issued with an invoice with respect to the supplier.

What are the details required in an Export Invoice under GST?

Export Invoice is a form of Tax Invoice under GST. A seller making export of goods or services must issue an Export Invoice to his buyers.

As per the GST Invoice Rules, an Export Invoice must have the following details:

  1. Export details
    • Shipping Bill Number, Shipping Bill Date and Shipping Port Code
    • Country of Supply
    • Number and date of application for removal of goods for export (ARE-1)
  2. Type of Export
    • Deemed Export
    • Export under Bond/LUT
    • Export with IGST
  3. Seller’s details
    • The legal name of the business
    • The registered address of the business
    • GSTIN of the state from which goods or services are supplied
  4. Buyer’s details
    • The legal name of the business
    • Delivery address
  5. Invoice details
    1. Invoice Number – A serial number, containing alphabets or numerals or special characters like hyphen or dash (-) and slash (/) unique for a financial year
    2. Date of Invoice
    3. Place of Supply – select Other Territory [Read More: List of State Codes under GST]
  6. Item details
  7. Tax details
    • Tax Rate (Central tax, State tax, Integrated tax, union territory tax or cess)
    • Amount of tax charged in respect of taxable goods or services i.e. CGST, SGST, IGST, UTGST, Cess
    • Whether the tax is payable on a reverse charge basis
  8. Total value of supply of goods or services or both
  9. Signature or Digital Signature of the supplier or his authorized representative

Sample Export Invoice

FAQs

1. Do I have to pay GST on exports?

To boost Exports, the Government had announced Duty Drawbacks under the previous laws for the tax paid on Exports of exempted goods. For GST, the Duty Drawback is only available on customs duty paid on imported goods. An Exporter dealing in Zero-rated goods under GST can claim a refund for zero-rated supplies.

2. What is an Export Invoice?

The Export Invoice is a broader term that encompasses forms like the Commercial Invoice and the Proforma Invoice. These forms have details of the buyer and seller of the goods, a description of the items and the number of goods sold.

What is a Bill of Supply under GST?

Just like a retail invoice under the current tax regime, there is a concept of Bill of Supply under GST.

A Bill of Supply is a document issued by a seller to the buyer when GST cannot be charged by the seller or when the nature of transaction does not attract GST. This means that, a Bill of Supply does not contain any tax.

However, a Bill of Supply need not be issued if the value of supply is less than Rs.200 subject to specified conditions.

Following Individuals can issue a Bill of Supply

  • A Registered Seller supplying exempted goods or services to a Registered Buyer or Unregistered Buyer.
  • A Registered Seller who has opted for the Composition Scheme u/s 10 of the GST Act on the supply of goods or services

Details required in a Bill of Supply

The supplier is free to design the format of Bill of Supply provided it contains all the mandatory details prescribed by the GST Invoice Rules.

As per the GST Invoice Rules, a Tax Invoice must have the following details:

  1. Seller’s details
    • The legal name of the business
    • The registered address of the business
    • GSTIN of the state from which goods or services are supplied
  2. Buyer’s details
    • The legal name of the business
    • The registered address of the business
    • GSTIN of the state to which goods or services are delivered
    • Additionally, also provide a Delivery address if is different from the registered address
  3. Invoice details
    • Invoice Number – A serial number, containing alphabets or numerals or special characters like hyphen or dash (-) and slash (/) unique for a financial year
    • Date of Invoice
    • Place of Supply i.e Name of the state as per the place of supply rules which is generally the state of the buyer. [Read More: List of State Codes under GST]
  4. Item details
    • HSN Code of Goods or SAC Code of Services as per the turnover limit applicable to the seller
    • Item name describing goods or services.
    • Quantity in case of goods and UQC i.e. Unit Quantity Code [List of Unit Quantity Codes (UQC) under GST]
    • Item Rate – the price of the of good or service
    • The total value of supply of goods or services or both, taking into account the discount or abatement if any
  5. A signature or Digital Signature of the supplier or his authorized representative

Sample Bill of Supply

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FAQs

1. What is the difference between invoice and bill of supply?

An Invoice is a Commercial instrument issued by the seller to the buyer. It highlights information related to trading parties, items sold and other information related to the sale. When businesses registered under GST cannot charge any tax on the invoice issued by them, a Bill of Supply is issued.

2. Is HSN Code necessary for bill of supply?

Suppliers are required to compulsorily display the HSN Code for the Goods or Service supplied under an Invoice.

3. What is HSN code list?

The ‘Harmonized System of Nomenclature’ i.e HSN is used worldwide for the systematic classifications of the goods. It is a globally accepted 6-digit uniform code.

What is a Credit Note under GST?

A Credit Note is a document issued when there is a reduction in the amount of payment to be received by the seller from the buyer. Under GST, the seller should issue a credit note in the following cases:

1) Value of the invoice reduces

In some cases, a seller might have made a mistake while issuing an invoice to the buyer. But, there’s nothing to worry about, as an error while entering the price, quantity, or tax amount in the original invoice, correction can be done by issuing a credit note. Thus, the seller should issue a credit note when the value of the invoice reduces after correction of the error.

Example:

Tax Invoice No.1 was issued for Rs.1000 (10 units * Rs.100). Hence, if the revised price is Rs.90, a credit note of Rs.100 (10 units * Rs.10) would be issued. Thus, the buyer is liable to pay Rs.900 (10 units * Rs.90) to the seller

2) Sales Return or deficiency in services provided

A credit note can be issued by the seller to the buyer if the buyer returns goods to the seller or when the buyer is not satisfied with the services provided by the seller

Example:

Mr.A sells goods to Mr.B for Rs.10,000 (50 units * Rs.200). Mr.B returns 20 units due to poor quality. Mr.A will issue a Credit Note of Rs.4000 (20 units * Rs.200) to Mr.B. Thus, Mr.B is liable to pay Rs.6,000 (30 units * Rs.200) to Mr.A.

The following details of the Credit Note once issued must be declared at the earliest:

  1. GST Return for the month in which Credit Note is issued
  2. September following the end of the year in which such supply was made
  3. Date of filing Annual Return

Sample Credit Note

FAQs

Can credit note be issued without GST?

It is important to note that Credit Notes are only issued to adjust the taxable value and not issued for adjusting tax in the books of accounts. However, the Tax liability of the supplier cannot be adjusted if the credit note is issued after the due date.

Is there a time limit for credit note under GST?

Yes there is a time limit. Section 34(2) of the CGST Act dictates that a Credit note for exchange of goods and services can be issued for any registered dealer up to a period of Six Months.

What is a Debit Note under GST?

A Debit Note is a document which a seller issued when the amount of payment to be received by the seller from the buyer increases. Under GST, a seller issues debit note in the following case:

  • Value of the invoice increases
    • A seller might have made a mistake while issuing an invoice to the buyer. If there is an error while entering the price, quantity, or tax amount in the original invoice, the seller can issue a debit note to make the correction. Thus, when the value of invoice increases after correction of the error, the seller issues a debit note.

Example:

Sales Invoice No.1 was issued for Rs.1000 (10 units * Rs.100). If the revised price is Rs.110, a debit note of Rs.100 (10 units * Rs.10) would be issued. Thus, the buyer is liable to pay Rs.1100 (10 units * Rs.110) to the seller.

The seller and buyer should declare the details of a Debit Note in the GST Return for the month in which the seller issues a Debit Note.

Sample Debit Note

FAQs

Who can issue a Debit Note?

The supplier can issue a Debit Note if the value of goods in the Invoice is less than the actual value or the rate of GST or Tax amount charged is at a lower rate than what is applicable.

What is an example for Debit Note?

Suppose Rakesh is a wholesale supplier of furniture. He sold 15 chairs to Rohan. The price for each chair is INR 150. But soon after delivery, Rohan realizes that 3 chairs are damaged. In this case, Rakesh can issue a Debit Note of INR 450 to Rohan.

Can debit note be issued without GST?

It is not possible to issue either a Debit or a Credit Note without GST including in it. Mainly because, for the reversal of Tax, GST must be taken in Credit/ Debit notes.

What is a Tax Invoice under GST?

A Tax Invoice is a document issued by a seller registered under GST to the buyer on sale of taxable goods or services.

A Tax Invoice is important because:

  1. It is the evidence of the supply of goods or services
  2. It is an essential document for the buyer to avail Input Tax Credit

Tax Invoice should be issued in the following cases:

  1. A Registered Seller supplying taxable goods or services to a Registered Buyer.
  2. Registered Seller supplying taxable goods or services to an Unregistered Buyer.
  3. Registered Seller making an Inter-State stock transfer to a branch in another state.
  4. Input Service Distributor (ISD) distributing GST Credit to its eligible branches.

How many copies of the Tax Invoice should be issued?

In the case of supply of goods, the seller should issue three copies of an invoice:

  • Original copy: for the buyer and marked as ‘Original for Recipient
  • Duplicate copy: for the transporter and marked as ‘Duplicate for Transporter
  • Triplicate copy: for the seller and marked as ‘Triplicate for Supplier

In the case of supply of services, the seller should issue two copies of an invoice:

  • Original copy: for the buyer and marked as ‘Original for Recipient
  • Duplicate copy: for the service provider and marked as ‘Duplicate for Supplier

What is the time limit to issue a Tax Invoice?

Type of Supply
Time limit
Supply of Goods1. If the supply involves the movement of goods – before or at the time of removal of goods
2. If the supply does not involve the movement of goods – before or at the time of delivery of goods to the recipient
3. In case of continuous supply of goods – before or at the time each statement of account is issued or each successive payment is received
Supply of Service1. In the normal case: within 30 days from the date of supply of service
2. In case of continuous supply of service: within 30 days from the date when each event specified in the contract for payment
3. Where the service provider is a bank or any financial institution: within 45 days of supply of service

FAQs

1. Is it mandatory to write tax invoice on GST invoice?

Yes, a Tax Invoice is compulsory for the supplier of goods and services. It is issued as evidence for transaction and it also acts as proof to claim input credit.

2. What is the difference between a Tax Invoice and a regular Invoice?

Where both the invoices certify the sale of goods and services, a Tax Invoice will also highlight the details of the Goods and Service Tax (GST) associated with that transaction.

3. Who can not show GST in Tax Invoice?

If a supplier is registered under GST, it becomes mandatory for him to shoe GST in Tax Invoice. However, if a supplier is not registered with the GST, he would have to isse a ‘Regular Invoice’.

What is an Export Invoice under GST?

Export means sale of goods or services to a person located outside India. Under GST, Exports falls under the category of zero-rated supplies. When a seller exports goods or services to its buyer, he must issue an invoice. An exporter shall issue a Tax Invoice as per the GST Rules with the additional details of export.

How many copies of an Export Invoice should be issued?

There is no term such as an Export Invoice under GST. Thus, a seller making exports should issue a Tax Invoice with details of export.

When the seller issues a tax invoice in case of export, he must mention the following text :

  • Payment of IGST – “Supply meant for export on payment of IGST”
  • If IGST has not been paid – “Supply meant for export under bond or LUT without payment of IGST”

The copies of the invoice issued are the same as in the case of tax invoices.

In the case of supply of goods, the seller should issue three copies of an invoice:

  • Original copy: for the buyer and marked as ‘Original for Recipient
  • Duplicate copy: for the transporter and marked as ‘Duplicate for Transporter
  • Triplicate copy: for the seller and marked as ‘Triplicate for Supplier

In the case of supply of services, the seller should issue two copies of an invoice:

  • Original copy: for the buyer and marked as ‘Original for Recipient
  • Duplicate copy: for the service provider and marked as ‘Duplicate for Supplier

FAQs

Do I have to pay GST on exports?

To boost Exports, the Government had announced Duty Drawbacks under the previous laws for the tax paid on Exports of exempted goods. For GST, the Duty Drawback is only available on customs duty paid on imported goods. An Exporter dealing in Zero- rated goods under GST can claim a refund for zero-rated supplies.

What is an Export Invoice?

Export Invoice is a broader term that encompasses forms like the Commercial Invoice and the Proforma Invoice. These forms have details of the buyer and seller of the goods, a description of the items and the number of goods sold.

What are the different types of GST apart from IGST?

It is charged on the sale of goods and services. Under the GST regime, there are three different types of taxes introduced – IGST, CGST, SGST / UTGST.

Which GST invoice should I issue on the sale of goods or services?

Any business registered under GST holding a valid GSTIN must issue an invoice on the sale of goods or services. The GST Invoice Rules comprise a list of various types of documents to be issued depending upon the nature of registration and nature of the transaction.

List of Documents issued on the Sale of Goods & Services depending upon the nature of registration and transaction

Document typeNature of transactionNature of seller
Tax InvoiceSale of taxable goods or taxable services Regular Dealer
Tax InvoiceInvoice issued for distributing input tax credit by a Head Office (ISD) to its branches Input Service Distributor (ISD)
Tax InvoiceSale of services for transporting goods by roadGoods Transport Agency (GTA)
Tax InvoiceSale of transport services to passengerPassenger Transporter
Export InvoiceSale of goods or services to a person located outside IndiaRegular Dealer
Bill of SupplySale of exempt goods or servicesRegular Dealer
Bill of SupplySale of goods or servicesComposite Dealer
Debit NoteIncrease in value of invoice issued on saleAny Dealer
Credit NoteDecrease in value of invoice issued on saleAny Dealer
Revised InvoiceSale of goods or services from the effective date of registration upto the date of issue of registration certificateAny Dealer
Receipt VoucherWhen advance for sale of goods or services is receivedAny Dealer
Refund VoucherWhen an advance is received but no sale is made and amount is to be refundedAny Dealer
Payment VoucherWhen buyer makes payment for goods bought from an unregistered seller Dealer paying tax under RCM
Delivery ChallanWhen goods are to be transported without making saleAny Dealer

FAQs

1. What is a GTA i.e. Goods Transport Agency?

A GTA is an agency that supplies services for transportation of goods by road in a goods carriage. It should issue a Tax Invoice to its customers. The tax invoice issued must be prepared as per the GST Invoice Rules.

2. Who is a Passenger Transporter?

A Passenger Transporter is a supplier who provides transportation services to passengers. It should issue a Tax Invoice or a ticket which may or may not be serially numbered and it may or may not contain address of service recipient but it must contain all other information prescribed in the GST Invoice Rules.

3. What is the difference between invoice and bill of supply?

An Invoice is a Commercial instrument issued by the seller to the buyer. It highlights information related to trading parties, items sold and other information related to the sale. When businesses registered under GST cannot charge any tax on the invoice issued by them, a Bill of Supply is issued.