Understanding GST Invoice For Business Activities In India
India introduced a simplified taxation system called df (GST) in 2017 as the traditional tax system had various taxes which needed to be calculated together. GST is a single taxation system which is beneficial for the Indian start-ups. GST aims at simplifying the tax system of India, providing tax benefits to the Indian start-ups, reducing the logistics cost by 20 percent. A GST invoice must be created by making sure that the GST number is present on the invoice.
Earlier, the business owners in India had to register for a tax identification number (TIN). Registering a GST number is quite simple and can be registered by online by logging onto GST Website.
GST number can be applied by business owners who have more than Rs.20 lacs per annum turnover and Rs.10 lacs per annum for businesses based out in North-Eastern states.
GST number is a unique 14-digit number which contains the state code, the pan number of the business owner, a default Z and check code for income department.
Top Ten Benefits
The top 5 benefits of generating a GST invoice are:
1. You save a lot of money involved in the transportation of goods as state border taxes are not levied anymore.
2. It is a single taxation policy in the entire nation and thus doing business in other cities is now more straightforward.
3. A GST invoice shows the Genuity of the company and its owner.
4. A GST invoice carries all the details of the supplier as well as the customer
5. A GST invoice helped in creating a better distribution model for logistics system in India.
Generating A GST Invoice
Before creating an invoice, you must be sure about the amount of the tax you need to deduct. Different goods have different taxes such as ready-made garments account for 5% of tax while detergents account for 18% of tax. Many products such as dairy products, meat, fresh fruits and vegetables, essential groceries are not included under GST, hence they are tax-free items.
GST invoices must mandatorily have GST number of the business. Every business that is eligible for a GST number must print their GST number in their invoice, and the GST bill must show a break up of CGST and SGST. You can generate your invoice using your format which can be created in MS-word or excel.
Following are the details which a typical GST invoice must consist of:
1. Name of the supplier along with business address
2. GSTIN of the supplier
3. Name of the receiver along with the business address
4. GSTIN of the receiver
5. Billing Date
6. Details of goods/services supplied
7. The rate of the goods/serviced provided
8. GST percentage as per Indian tax law
9. Break up of GST percent into CGST and SGST
10. The total amount of the invoice.
There are many software’s in the market which comes with a designed format of a GST invoice. All you need to do is fill the details and download or print it.
All the GST invoices must be safely secured and saved as it is helpful in filing GST returns quarterly.
We offer reliable and affordable services for GST registration in India. Hire our services and relax while we take care of all the formalities to register your GST. Contact us now!
3E Accounting India
3E Accounting India is a corporate service provider and accounting firm assisting clients with company formation and incorporation. We offer company secretary and business-related services in India.
