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What are the types of invoice?

What are the types of invoice

What are the types of invoice?

The Goods and Services Tax is a comprehensive indirect tax that is levied on the sale of goods and services within India. In India, GST is levied on the sale of goods and services at multiple rates depending upon the nature of goods and services. For this purpose, GST invoices are issued by the seller to the buyer which serves as proof of transaction. This article lists the types of GST invoice in detail.

Types of GST Invoices

  • Tax Invoice
  • Credit Note
  • Debit Note
  • Bill of Supply
  • Consolidated Tax Invoice

Tax Invoice:

A tax invoice is issued by a registered dealer at the time of supply of goods/services. This invoice must contain the transaction details such as the buyer’s name, GSTIN number, HSN code, GST rate, the value of goods, the value of taxes, and the total value of the transaction. Besides this, it must also include the signature of the authorized person.

Credit Note:

 The supplier may issue a credit note to the buyer if a tax invoice has already been issued for a supply and it is later found that the value or tax levied in that invoice is more than it should be or if the buyer has returned the supplies. It must include the reasons for the increase in the value of goods or services and must be signed by the authorized person.

Debit Note:

 A debit note is issued a tax invoice has already been issued for a supply and it is later found that the value or tax levied in that invoice is lower than it should be.

Bill of Supply:

 A bill of supply is issued by registered persons supplying exempted products or/and services or in the case of individuals registered under the GST composition scheme. It is a kind of tax invoice, but it does not contain the amount of tax charged. The details of the supply, such as description, HSN/SAC, quantity, unit, rate, value, and other related information must be mentioned in the Bill of Supply.

Consolidated Tax Invoice:

A registered taxpayer may issue a consolidated tax invoice when- 

  • The transaction value is less than or equal to Rs 200
  • The recipient does not need a tax invoice
  • The recipient is a non-registered taxpayer.

A Consolidated Tax Invoice must include the details of the supplies, such as description, HSN/SAC, quantity, unit, rate, value, and other related information.

All the details mentioned in the invoice must be accurate and should be verified before issuing the invoice. The seller must also ensure that the invoice is issued within the stipulated time frame in order to avoid any kind of legal complications.