With an increase in investment taking place in India, there are a large number of foreign transactions made every day between foreign and Indian businesses. For businesses intending to invoice clients in India, it is important that they follow the correct format and procedures when issuing invoices.
Invoicing clients in India
All taxable transactions in India require fully compliant GST invoices for the same of goods and/or services. An invoice not only evidences the supply of goods or services but is also an essential document for the individual to avail Input Tax Credit (ITC).
Manner of issuing invoices in India
When issuing GST invoices, it is also worth bearing in mind that multiple copies are required, depending on the nature of the transaction.
For Goods: Triplicate
In the case of supply of goods, the invoice should be prepared in the following manner:
- The original copy marked as ORIGINAL FOR RECIPIENT
- The duplicate copy marked as DUPLICATE FOR TRANSPORTER
- The triplicate copy marked as TRIPLICATE FOR SUPPLIER
For Services: Duplicate
In the case of supply of services, the invoice should be prepared in the following manner:
- The original copy marked as ORIGINAL FOR RECIPIENT
- The duplicate marked as DUPLICATE FOR SUPPLIER
GST Invoicing in India: Timescales
GST invoices should be issued in accordance with the following timescales:
- For Goods – At the movement of goods or when they are made available to the customer
- For Continuous Supply of Goods – On or before the date of issue of the account payment
- For General Services – Within 30 days of supply of service
- For Other Services (Banks/NBFCs) – Within 45 days of supply of service
Mandatory components on a GST invoice
GST invoices must include the following details and should be retained for at least 6 years:
- Details of supplier and GST number
- Supplier’s digital signature
- Invoice number and date
- Details of customer and GST number
- Details of taxable goods (including HSN code) or/and services
- Quantity of goods/services
- Delivery state
- Net cost of goods/services
- Details of any discounts applies
- GST rate(s) applied by CGST, SGST and IGST
Invoicing in India, made easy with INS Global
When providing an invoice in another country, it’s important to ensure that your transactions are made efficiently and in full compliance with local laws and regulations. INS Global offer solutions to companies with or without an entity in India to invoice their clients. We play an intermediary role between you and your clients in India, allowing us to issue invoices that are 100% compliant with Indian regulations. Contact us today to simplify your invoicing process today.
