Special Cases: Goods and Services Tax Invoices Format Relaxations

A Goods and Service Tax invoice is a commercial bill of sale issued by the sellers to recipients of products or services. According to section 31 of the CGST Act, it is mandatory to issue tax invoices for any goods or services supplied. The GST law has specified rules as to how a business must issue an invoice. However, there are certain exceptions where the law provides definite relaxations. The article will provide you with a concrete understanding of special cases under which GST e-invoice format relaxations are applicable.

GST Invoice Format Relaxation Under Special Cases

Under the GST Regime, a tax invoice is a crucial document that provides precise information on GST amount, quantities, shipment data, mode of transport, delivery, and payment terms. GST bill of sale is vital for any business owner to avail of ITC (Input Tax Credit). The GST Council of India has ruled out a standardized format for tax invoices. However, rule 46 for tax invoices under GST, has prescribed relaxation for specific special cases. That include:

Financial Institutions, Banks & Insurance Companies
ISD – Input Service Distributor
GTA – Goods Transport Agency
Passenger Transport Services

Format of Tax Invoices for Supply Made by Insurance Companies, Financial Institutions or Banks

When a tax invoice or bill of supply is issued by suppliers such as banks, non-banking institutions, or other financial companies, the following relaxations are provided under rule 46 of GST law.

These businesses can issue an integrated tax invoice monthly on supplies made during that month.
Businesses can either provide a physical tax invoice with a sign or an online tax invoice with a digital signature.
Key considerations such as the recipient’s address or the serial number of invoices are not mandatory under GST tax invoice format relaxations.

The relaxations mentioned above are applicable only for the following special cases

Bill of Supply
Debit/Credit Note
Payment/Recipient/ Refund Voucher

Format of Tax Invoices for Supply Made by (ISD) Input Service Distributor

The format of an ISD credit note is slightly different from that of a regular tax invoice. Here’s what a tax invoice format on ISD supplies must include.

Name
Address
GSTIN/ GST Registration Number of the (ISD) Input Service Distributor
Serial number (either one or multiple characters within 16 characters)
Date of Issue
Details of Recipient Eligible for the Credit
Amount of Credit Issued by the Distributor
Signature/Digital Signature of ISD or Authorized Representative of ISD
Bank
Financial Institution
NBFC (Non-Banking Finance Company)
Insurance Company

Tax Invoicing for Common Code Bearers

In case the distributor and recipient have the same PAN code and State code, he can issue a tax invoice or credit/debit note with transferring standard input services to ISD. Any such invoice must contain the following details.

Name
Address
GSTIN/ GST Registration Number of the (ISD) Input Service Distributor
Unique Serial Number (either one or multiple characters within 16 characters)
Date of Issue
Original Invoice Number and GSTIN of Common Service Supplier
Details of the distributor
Amount of Credit, Taxable Value, and Rate to be Transferred by the Distributor
Signature/Digital Signature of ISD or Authorized Representative of ISD

Format of Tax Invoices for Supply Made by (GTA) Goods Transport Agency

A GTA or Goods Transport agency can issue GST invoices as per the specified considerations under Rule 46. However, the supplier must include some additional information which consists of the following pointers.

Consignment Weight
Details of the Consigner and the Consignee
Vehicle Registration Number
Details of Goods Transported
Details of Origin and Destination of Goods
GSTIN of the Tax Bearer

Format of Tax Invoices for the Supply of Passenger Transport Service

For the supply of Passenger Transport Services, the registered person must issue an invoice that includes ticket details. There are a few exemptions on relaxations provided for the supply of Passenger Transport Services.

The supplier need not mention serial numbers.
The recipient’s address is optional for any such invoices.

However, the tax invoice format must include all the other considerations mentioned under Rule 46 except the two exemptions mentioned above. It can either be issued digitally or physically. A signature may not be required on digital invoices.

What Online Accounting Software Supports Tax Invoice Format Under Rule 46?

The supply of goods and services is chargeable under GST. A GST invoice indicates the time of supply. Thus, businesses need to issue GST-compliant invoices. Groflex GST billing software enables you to automate invoice processing. The customized, updated invoice templates allow businesses to generate e-invoices under exceptional cases. Groflex.io is an all-inclusive, comprehensive invoicing software that supports filing GST compliance in just a few clicks. Businesses can automate invoicing GST returns and avail of tax credits through our accounting software. Subscribe and ease your financial workflow in no time. Benefit from accounting solutions and forecasts in the long run.

Conclusion

The government has provided relaxations on GST invoice format under special cases to ease compliance procedures for small businesses in India. Registered enterprises must follow the GST invoice rules and scheme as per the notifications alerted by the GST council. Is your business eligible for invoice format relaxations? Simplify invoicing with Groflex.io, the best accounting software for small businesses in India.