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    Nagpur City No 1 eNewspaper : Nagpur Today

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    Published On : Wed, Mar 18th, 2020
    Business News | By Nagpur Today Nagpur News

    The Importance of Invoicing Under GST and Doing It The Right Way


    GST is one of the most revolutionary acts in the history of the Indian Taxation Laws, which has brought about a complete transformation in the way the indirect taxes are governed within the country. Earlier where all the responsibilities for the proper functioning of indirect taxes rested with the Central Board of Excise and Customs, with the coming of GST, the onus has completely shifted on the GST council members to perform those functions. Even that board has been replaced by the Central Board of Indirect Taxes. And with this new council and board, there are other new things as well, such as new registrations, new returns, and a new GST invoice format in excel. And while the importance of the registrations and returns is readily understandable, people could quite not understand the need for this invoice format and its importance. So, this article is to clear your confusion about the same.

    What is GST Invoice?

    We have all known about the importance of bills. There have been several campaigns insisting the buyers to always ask for bills while getting into any transaction for the provision or supply of goods or services. These are commercial bills that the businesses issue as proof of the transaction having taken place. A GST invoice is also a bill giving proof of the transaction. However, it is different from the commercial bills in the sense that the commercial bills do not follow any specific format, and GST has a well-defined format in excel for the issuing of invoices. This format includes certain important details to be included in the invoice, which are not necessarily available in the commercial bills. So, it is important for the GST taxpayers to comply with this format and issue GST compliant invoices so that they could avail of the benefits available from it.

    Importance of GST Compliant Invoices

    The importance of GST compliant invoices come from the benefits they give out to the taxpayers. Here are the reasons why the businesses should keep up with the GST invoice format in excel during their transactions.

    They are a Record of a Valid Transaction

    The GST compliance record legally and validly that a transaction under the GST Act has taken place and all the requirements relating to GST as regards that transaction have been complied with. These GST compliant invoices show necessary details on their face, which are important to prove the validity of a transaction.

    They Help Claim Input Tax Credit

    Input Tax Credit is the refund of the tax you have already paid on your transactions, and to claim this credit, you need to show a valid proof of the transaction having taken place. A GST compliant invoice serves as that proof and helps claim the input tax credit, and you get the amount credited to your account without any problem.

    They Help Make GST Payments in Time

    With GST compliant invoices, you have a complete record of all the transactions you have made. This record also serves you as a medium to determine the amounts of GST payments you need to make and the due date for the same. So, with a proper record, you can easily make your GST payments and well within the due date so that you do not have to pay any extra fees,

    They Help With Return Filing

    When you are filing your GST return, you need to have complete detail of all the transactions you have made during the month. The GST compliant invoices, amongst other things, serve as an important record for the same. They put before you all the transactions that have taken place in your business, along with the relevant figures and values. So, it becomes easy for you to file your returns by simply picking out details from the invoices and filling it in the annual and monthly returns.

    With all these importances, you surely must now want to know how to create these invoices. And while you must be thinking that it would be really difficult to keep up with the vast format, in reality, it is not. All you need to create such GST invoices the right way is a good GST billing software.

     

    What is a GST Billing Software?

    A GST billing software is a system that has inbuilt systems for creating GST compliant invoices. The software contains the complete format of the invoice, and all you need to do is put in values in the software, and it will generate your GST invoice with all the necessary details on the face of it. You even need not add the rates of GST in the bill. The software has an inbuilt capability to read and apply the applicable rates as per the values and type of product and services involved in the transaction.

    There are many such GST billing software available from which you can choose. All you need to do is stay assured of your needs and look out for the software which serves those needs the best in the most pocket-friendly manner.

    Conclusion

    This was all about the GST compliant invoices, their importance, and preparation. The GST invoices seem a lengthy procedure with the GST invoice format in excel and the strict requirements to comply with that format. However, it is not at all lengthy. All you need to do is

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