What every invoice must show
- Tax invoice with the GSTIN of supplier and registered recipient, HSN or SAC code per line, place of supply, and CGST/SGST or IGST shown separately.
- Businesses above ₹5 crore turnover must generate an IRN and QR code through an Invoice Registration Portal.
Numbering, keeping and correcting invoices
Invoices and the books behind them must be kept until seventy-two months have passed from the due date of the annual return for the year they relate to (section 36, CGST Act, 2017). A taxpayer in an appeal, revision, court proceeding or offence investigation must keep the related records for one year after the final disposal, or for the seventy-two months, whichever ends later.
A supplier who needs to reduce a bill issues a credit note under section 34. The credit note must be declared in the return for the month in which it is issued, and not later than 30 November following the end of the financial year of the original supply or the date of the annual return, whichever is earlier. A corrected invoice is issued as a revised invoice marked "Revised Invoice" and quoting the serial number and date of the invoice it replaces (rule 53).
Supplying without an invoice, or issuing an incorrect or false invoice, attracts a penalty of 10,000 rupees or the tax evaded, whichever is greater (section 122(1)(i)).
Electronic invoicing in India
E-invoicing is mandatory for B2B invoices of businesses with turnover above ₹5 crore; smaller businesses issue ordinary tax invoices.