How to find GST Rate and how to raise an GST-compliant invoice to consumer?

Last Updated at: July 18, 2020
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How to find GST Rate and how to raise GST compliant invoice to consumer?

GST was introduced with a five-tier tax slab to demarcate the essential and luxuries goods. The five slabs are NIL, 5%, 12%, 18% and 28%. There is no GST imposed on some of the commodities like salt, sanitary napkins, colouring books and drawing books for children, cereal grains like oats, wheat, etc. The 5% tax slab is for items like kites, biogas, cashew nuts, natural cork, etc. Under the GST framework, 12% slab is for items like plastic beads, notebooks, pickles, ketchup, diagnostic kits, etc. Other important commodities like aluminium foil, computer monitors (not exceeding 17 inches), set up boxes for televisions, headgears, power banks, sports goods, etc fall under the 18% bracket. 

The tax rate of 28% is for non-alcoholic beverages, aerated waters containing added sugar, cigars and other tobacco products, granite, paints & varnishes, perfumes, cosmetics like sunscreen, kajal, etc.  

Visit to the following link to know about GST Invoice Format.

The GST rates for products and services can be found on the GST website by following the below-mentioned steps: 

Step 1: Visit the official page of Central Board of Indirect taxes and Customs and the following page will appear https://cbic-gst.gov.in/index.html

Step 2: Click on the Service option on the menu bar (blue horizontal bar on top) and click on the GST Rates option.

Step 3: The following page will appear where you can find the tax rate of any goods or services or both. Alternatively, the rates will be available on the PDF file for both goods and services on the right-hand corner of the page.

Click here to know about GST invoice.

Using the search bar, type the name of the service or product in the “Description of goods” tab. Alternatively, you can also search using the “Chapter names”.  

Invoice is prepared on the basis of the GST tax rates. For a business having a valid GSTIN (GST identification number), there should necessarily be an invoice issued by the supplier to its customers during the sale of goods or services or both. 

Make Your Business GST Ready

Following are the details a supplier should mention on the invoice to make it valid and admissible for Input Tax Credit claim and refunds:

  1. GSTIN of the supplier and its name and address
  2. Date on which it was issued

(For the supply of goods, an invoice is issued during the clearance while for services it should be issued within 30 days from the date when the service was rendered)

3. Tax invoice number which will be generated consecutively. Each tax invoice will be having a Unique number for that financial year.

4. Where the buyer/recipient is registered then his GSTIN number, name and address. However, if the recipient is not registered under GST and the transaction done is of value more than Rs 50,000, then on the invoice following should be mentioned:

  • His name and address
  • Address of the place where the goods or services is to be delivered
  • Name and code of the State

5. Description and the goods or services supplied

6. Quantity and the unit of goods

7. The total value of the goods or services supplied

8. After adjusting the discount, if any, the taxable value of the supply

9. HSN code to be mentioned. If the turnover lies between 1.5 crore and 5 crores then the 2-digit code and if more than 5 crores, 4-digit HSN code. HSN code was introduced to harmonise the classification of goods throughout.

10. Identify the name of transaction made and on the basis of that find the applicable rate of GST. This includes CGST, IGST, SGST, UTGST and cess.

11. After the identification of applicable law, the supplier has to write the applicable rate of GST. Rate of CGST, IGST, SGST, UTGST and cess should be separately and clearly mentioned.

12. In the case of inter-state supply mention the state when the goods have to be supplied with the details of the place of supply. 

13. Where the place of supply and delivery address are different, mention the delivery address

14. If the tax is to be paid on the reverse charge basis, supplier to mention it clearly.

15. Signature of the supplier

Persons who are raising an invoice for the supply of goods should issue three copies of the same. The original copy will be kept with the supplier and the duplicate copies will be with the transporter and he/she would provide another copy of it to be the recipient. In the case of the supply of services, two copies will be issued. One for the supplier and other for the recipient. 

Other types of invoices that business issues:

  1. Bill of Supply: Where the goods or services provided by the registered businesses are exempted
  2. Consolidated Tax invoice (CTI): Where the value of goods or services supplied is less than Rs200.

This is issued even in cases where the registered person does not issue an invoice. This situation arises when the recipient is not registered under GST and he/she does not require an invoice. In such a case, the registered business will issue CTI at the end of each day for all such supplies made.

3. Receipt Voucher: When the GST registered supplier receives money in advance from customers for some future supply. 

In all other cases, the invoice should be issued and failure to do so is an offence and would attract penalty under the GST law.

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How to find GST Rate and how to raise an GST-compliant invoice to consumer?

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GST was introduced with a five-tier tax slab to demarcate the essential and luxuries goods. The five slabs are NIL, 5%, 12%, 18% and 28%. There is no GST imposed on some of the commodities like salt, sanitary napkins, colouring books and drawing books for children, cereal grains like oats, wheat, etc. The 5% tax slab is for items like kites, biogas, cashew nuts, natural cork, etc. Under the GST framework, 12% slab is for items like plastic beads, notebooks, pickles, ketchup, diagnostic kits, etc. Other important commodities like aluminium foil, computer monitors (not exceeding 17 inches), set up boxes for televisions, headgears, power banks, sports goods, etc fall under the 18% bracket. 

The tax rate of 28% is for non-alcoholic beverages, aerated waters containing added sugar, cigars and other tobacco products, granite, paints & varnishes, perfumes, cosmetics like sunscreen, kajal, etc.  

Visit to the following link to know about GST Invoice Format.

The GST rates for products and services can be found on the GST website by following the below-mentioned steps: 

Step 1: Visit the official page of Central Board of Indirect taxes and Customs and the following page will appear https://cbic-gst.gov.in/index.html

Step 2: Click on the Service option on the menu bar (blue horizontal bar on top) and click on the GST Rates option.

Step 3: The following page will appear where you can find the tax rate of any goods or services or both. Alternatively, the rates will be available on the PDF file for both goods and services on the right-hand corner of the page.

Click here to know about GST invoice.

Using the search bar, type the name of the service or product in the “Description of goods” tab. Alternatively, you can also search using the “Chapter names”.  

Invoice is prepared on the basis of the GST tax rates. For a business having a valid GSTIN (GST identification number), there should necessarily be an invoice issued by the supplier to its customers during the sale of goods or services or both. 

Make Your Business GST Ready

Following are the details a supplier should mention on the invoice to make it valid and admissible for Input Tax Credit claim and refunds:

  1. GSTIN of the supplier and its name and address
  2. Date on which it was issued

(For the supply of goods, an invoice is issued during the clearance while for services it should be issued within 30 days from the date when the service was rendered)

3. Tax invoice number which will be generated consecutively. Each tax invoice will be having a Unique number for that financial year.

4. Where the buyer/recipient is registered then his GSTIN number, name and address. However, if the recipient is not registered under GST and the transaction done is of value more than Rs 50,000, then on the invoice following should be mentioned:

  • His name and address
  • Address of the place where the goods or services is to be delivered
  • Name and code of the State

5. Description and the goods or services supplied

6. Quantity and the unit of goods

7. The total value of the goods or services supplied

8. After adjusting the discount, if any, the taxable value of the supply

9. HSN code to be mentioned. If the turnover lies between 1.5 crore and 5 crores then the 2-digit code and if more than 5 crores, 4-digit HSN code. HSN code was introduced to harmonise the classification of goods throughout.

10. Identify the name of transaction made and on the basis of that find the applicable rate of GST. This includes CGST, IGST, SGST, UTGST and cess.

11. After the identification of applicable law, the supplier has to write the applicable rate of GST. Rate of CGST, IGST, SGST, UTGST and cess should be separately and clearly mentioned.

12. In the case of inter-state supply mention the state when the goods have to be supplied with the details of the place of supply. 

13. Where the place of supply and delivery address are different, mention the delivery address

14. If the tax is to be paid on the reverse charge basis, supplier to mention it clearly.

15. Signature of the supplier

Persons who are raising an invoice for the supply of goods should issue three copies of the same. The original copy will be kept with the supplier and the duplicate copies will be with the transporter and he/she would provide another copy of it to be the recipient. In the case of the supply of services, two copies will be issued. One for the supplier and other for the recipient. 

Other types of invoices that business issues:

  1. Bill of Supply: Where the goods or services provided by the registered businesses are exempted
  2. Consolidated Tax invoice (CTI): Where the value of goods or services supplied is less than Rs200.

This is issued even in cases where the registered person does not issue an invoice. This situation arises when the recipient is not registered under GST and he/she does not require an invoice. In such a case, the registered business will issue CTI at the end of each day for all such supplies made.

3. Receipt Voucher: When the GST registered supplier receives money in advance from customers for some future supply. 

In all other cases, the invoice should be issued and failure to do so is an offence and would attract penalty under the GST law.

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