GST compliant invoices| North Loop Official Blog
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North Loop
05 Jan 2021

GST compliant invoices

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Goods and Services Tax or GST has been hailed as one of the biggest tax reforms in Indian history. GST is a form of indirect tax that the government levies at multiple stages of the supply of goods and services. GST encompasses multiple indirect taxes, such as Value Added Tax, Service Tax, Excise, etc.
The final tax that the consumer pays minus the input tax that the producer pays is the net tax liability of the producer to the government.

Prior to the introduction of GST, the Indian government amassed a revenue of Rs. 3.58 trillion in 2014/15- which within a span of two years, increased to Rs. 6.36 trillion.

Post the introduction of the new tax regime, however, the Indian Government has amassed revenue that has jumped over two-folds within a span of one year. We can attribute the sharp increase in tax revenue to the wider tax bracket and the higher base tax.

Switching to the new GST regime involves companies across all scales to become GST-compliant. Even the process of invoicing has changed under the new regime, and in this article, we uncover how businesses need to update their invoicing procedures.

What is a GST invoice, and who needs to issue GST invoices?

A GST invoice is a detailed bill that a GST registered business issues its customers, which contains details of the goods and services provided and the amount the customer owes. If you purchase goods or avail of services from a GST registered vendor, it is their responsibility to issue you a GST-compliant invoice.

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Types of invoices-

Under the new GST regime in India, there are two types of invoices-

1. Tax Invoice- A tax invoice helps GST registered businesses claim input tax credit. It contains all details of the goods and services supplied.

2. Bill of Supply- There are two instances where a business issues a bill of supply. A vendor issues a bill of supply when the goods and services supplied are GST-exempt. In case the vendor makes a sale while registered under the composition scheme, a bill of supply is issued.

E-invoicing GST

An e-invoicing GST system is a type of GST system wherein the Goods and Services Tax Network verifies all invoices and debit/credit notes. The Invoice Registration Portal issues an Identification Number or Invoice Reference Number with a QR code to each invoice. Under GST, e-invoicing has been made applicable for businesses whose aggregate turnover during 2019/20 has exceeded Rs. 500 crores.

What are some of the problems vendors frequently encounter while invoicing?

1. Businesses aren’t usually equipped with a proper payment dashboard that keeps track of whether a client has settled their payments or not.

2. Manually invoicing your customers can be an extremely slow and mundane process.

3. Creating recurring invoices can be a tedious task.

4. The invoice may not be completely GST-compliant.

5. Consolidation of invoices isn’t exactly easy.

6. Storage of invoices is a hassle.

How North Loop’s Invoicing & Automated Accounting product comes in clutch for GST registered vendors-

North Loop’s invoicing and automated accounting solutions are a one-stop-shop for a GST registered vendor’s invoicing needs, packed with a wide array of features such as-

1. Unlimited Automated invoices- Automated invoices helps reduce errors that arise predominantly while creating manual invoices, especially in the case of recurring invoices.

2. Visual dashboard- Visual dashboard helps you understand the status of payments across multiple customers and allows you to follow up on discrepancies and delays. North Loop’s invoicing solutions help send clients automated payment reminders, which can make the process of payment settlement faster.

3. Create recurring invoices- The entire process of creating recurring invoices is quick and hassle-free, leaving you with more time to focus on the core requirements of your business.

4. Unlimited GST-compliant invoices- Automated GST compliant invoices ensure you don't need any accounting knowledge to keep your business compliant with the changing regulations.

5. Automated accounting- Having all invoices stored and consolidated makes tax filings easy as pie.

6. Searchable invoices stored in the cloud- Quick and easy access to stored invoices ensure you never lose important business information again.

Click here to know more about North Loop’s invoicing and automated accounting solutions.

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.