BAJAJ BROKING
June 02, 2025
6 mins read
Goods and Services Tax was introduced in July 2017. After this, GST replaced multiple taxes that were earlier charged with a single tax known as the goods and services tax. Registered businesses now need to generate GST invoices or bills that include GST rates and other necessary details.
Simply put, GST bills are invoices that have the details of goods and services rendered and the due payment. The bill also includes the GST charged on the goods and services. It is crucial for businesses to be careful while preparing GST invoice bills, as these are reflected in their account books. Not only this, businesses often claim ITC (Input Tax Credit) and for this, they need the tax invoice under GST from their vendors.
This guide will talk about the ‘what is GST invoice’, the importance of GST bills, and how it is issued. So, read till the end to understand all about GST invoice compliance.
Now that you know GST invoice meaning, you must also know why GST invoices are important in business transactions!
GST invoices are crucial for business transactions primarily to adhere to the legalities. Failing to comply with GST norms, a business may suffer penalties and even legal actions. For a smooth and hassle-free ITC claim process, GST bills are essential. Apart from this, it is also an essential document used to file income tax returns. It is proof of the actual business transactions and tax liability of a business.
It is mandatory for registered businesses to generate GST invoices and filing to do so shows tax evasion. Such a case can eventually lead to legal charges and hefty penalties. So, to stay tax compliant and run business smoothly, it is crucial to adhere to the GST invoice norms.
In GST invoice bills, there are certain mandatory components that a business must include. These are:
Invoice number and date
Shipping and billing address
Customer name
GSTIN of the Customer and taxpayer
Supply place
SAC code/HSN code
Detail of items, that is. description, quantity in numbers, and unit
Total value
Discounts and taxable value
Amount of taxes and GST rate; IGST/CGST/ SGST
Is GST charged on a reverse basis
Supplier's signature
If the business is not a registered one, they need to include the following in their invoice if the value of goods/services is over ₹50,000:
Recipient's name and address
Delivery address of delivery
Name and code of the state
The time limit for issuing GST invoices is specified by the GST Act. For GST tax invoices, debit notes, revised GST bills, and credit notes, the following are the time limits:
Goods (Normal Case): Invoice to be dispatched on or prior to the date of removal or delivery.
Goods (Continuous Supply): Invoice to be dispatched on or prior to the date of account statement issue or payment.
Services (General Case): Invoice to be issued within 30 days from the date of supply of services.
Services (Banks & NBFCs): Invoice to be issued within 45 days from the date of supply of services.
Let's understand the differences between tax invoice and bill of supply. The table below gives a detailed description and comparison of the two:
Aspect | Tax Invoice | Bill of Supply |
Purpose | Issued to charge GST and pass on Input Tax Credit (ITC) | Issued when GST is not to be charged |
Tax Component | Includes GST (CGST, SGST, IGST) | Does not include any tax |
Eligible for ITC | Buyer can claim Input Tax Credit | Buyer cannot claim Input Tax Credit |
When Issued | For taxable supply of goods or services | For exempted goods/services or by composition scheme taxpayers |
Applicable To | Registered businesses making taxable supplies | Registered businesses: |
Invoice Format | Must include GST rate, tax amount, and HSN/SAC code | No GST rate or tax amount required |
Relevant GST Rule | Section 31(1) of CGST Act | Section 31(3)(c) of CGST Act |
It is not always possible to issue a GST invoice at the time of purchase or sale of goods and services. So, the timeline set for GST invoices for different types of goods and services is as follows:
Normal Goods:
Following are the cases for normal goods:
When goods are transported:
Make the invoice on or prior to the date of despatch.
When goods are not transported:
Make the invoice on or before the date of delivery.
Continuous Supply of Goods
If the supply entails periodic payment or account statements, send the invoice on or before each payment or statement date.
A GST invoice is an important document for reporting sales under the Goods and Services Tax regime. It provides legal compliance, facilitates Input Tax Credit, and promotes transparency in transactions. Companies are required to add all the mandatory details and release invoices within specific time frames to evade penalties. Complying with GST invoicing norms provides for hassle-free functioning and correct reporting of taxes.
Share this article: 
No result found
A GST invoice is a bill that contains all the details of goods and services provided along with the GST charges applicable to it. It also contains several other details of the recipient and the seller.
Registered businesses must issue GST invoices to stay compliant with GST norms and avoid any legal issues.
A GST bill has several details of the charges of goods and services, details of the business, GSTIN, etc.
A Tax Invoice is issued when GST is applicable and allows input tax credit. A Bill of Supply is used when GST isn’t charged, and no input credit is available.
Penalties for non-compliance with GST invoicing rules include fines, denial of input tax credit, and interest on unpaid taxes. Repeated offenses may lead to stricter legal actions.
Disclaimer :
The information on this website is provided on "AS IS" basis. Bajaj Broking (BFSL) does not warrant the accuracy of the information given herein, either expressly or impliedly, for any particular purpose and expressly disclaims any warranties of merchantability or suitability for any particular purpose. While BFSL strives to ensure accuracy, it does not guarantee the completeness, reliability, or timeliness of the information. Users are advised to independently verify details and stay updated with any changes.
The information provided on this website is for general informational purposes only and is subject to change without prior notice. BFSL shall not be responsible for any consequences arising from reliance on the information provided herein and shall not be held responsible for all or any actions that may subsequently result in any loss, damage and or liability. Interest rates, fees, and charges etc., are revised from time to time, for the latest details please refer to our Pricing page.
Neither the information, nor any opinion contained in this website constitutes a solicitation or offer by BFSL or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.
BFSL is acting as distributor for non-broking products/ services such as IPO, Mutual Fund, Insurance, PMS, and NPS. These are not Exchange Traded Products. For more details on risk factors, terms and conditions please read the sales brochure carefully before investing.
Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For more disclaimer, check here : https://www.bajajbroking.in/disclaimer
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading
Open Your Free Demat Account
Enjoy low brokerage on delivery trades
|
Please Enter Mobile Number
Open Your Free Demat Account
Enjoy low brokerage on delivery trades
|
TRENDING CALCULATORS AND STOCKS ON BAJAJ BROKING
POPULAR STOCKS: Tata Motors Share Price Infosys Share Price IRFC Share Price SBI Card Share Price Cipla Share Price NBCC Share Price IDFC First Bank Share Price IRCTC Share Price PNB Share Price Vodafone Idea Share Price Axis Bank Share Price JSW Steel Share Price Bandhan Bank Share Price SBI Share Price Tata Steel Share Price ONGC Share Price Ashok Leyland Share Price Paytm Share Price Subex Share Price DLF Share Price Reliance Share Price HDFC Bank Share Price Suzlon Share Price IOC Share Price HUL Share Price Asian Paints Share Price Bank Of Baroda Share Price ITC Share Price TCS Share Price HFCL Share Price Icici Bank Share Price Tata Chemicals Share Price CDSI Share Price MRF Share Price Tata Power Share Price Adani Green share price BPCL Share Price Vedanta Share Price Dmart Share Price Hindalco Share Price LIC Share Price SAIL Share Price Adani Port Share Price IEX Share Price Nalco Share Price L&T Share Price Adani Power Share Price BHEL Share Price Bajaj Finance Share Price Canara Bank Share Price Indusind Bank Share Price Gail Share Price Yes Bank Share Price Wipro Share Price Happiest Minds Share Price Coal India Share Price Maruti Share Price Reliance Power Share Price
INDIAN INDICES: Nifty 50 Share Price SENSEX Share Price Nifty Next 50 Share Price BSE100 Share Price Nifty Bank Share Price LRGCAP Share Price Nifty 100 Share Price MIDCAP Share Price Nifty 200 Share Price SMLCAP Share Price Nifty 500 Share Price BSE500 Share Price Nifty Midcap 50 Share Price ALLCAP Share Price NIFTY SMLCAP 50 Share Price BSE200 Share Price India VIX Share Price BSEIPO Share Price
