Generating GST-specific invoices does not have to be a tedious process. With the right software, you can even automate complicated tax calculations, so that every one of your invoices complies with tax law in seconds. No matter if you’re a retailer, wholesaler, or service provider, mastering this process results in both efficiency as well as peace of mind. Here is a step-by-step guide on how to create a GST invoice in minutes.
What are the key fields a GST-compliant invoice should have?
A valid GST invoice must include the following specific details to meet statutory requirements:
- Invoice number and date
- Name of the customer
- Shipping and billing details
- Customer and taxpayer’s GSTIN (if registered)
- Place of supply
- HSN code/SAC code
- Item details such as description, quantity, unit, and total value
- Taxable value and any discounts applied
- Rate and amount of taxes, including CGST, SGST, or IGST
- Whether GST is payable under reverse charge
- Supplier’s signature
- If applicable, the phrase “Revised Invoice” or “Supplementary Invoice” must be displayed, along with the original invoice number and date.
Steps to generate GST invoices using the right tool
Here are the steps that you need to follow to create GST-compliant invoices using an intuitive software solution:
1. Start from the right place in your software
To begin, navigate to the Gateway of your GST invoice software. From there, go to Vouchers, and press F8 (Sales) to access the sales entry screen. Alternatively, use the shortcut Alt+G (Go To) > Create Voucher, and then press F8 (Sales).
2. Choose your party account wisely
In the field named Party A/c name, choose the appropriate customer ledger. If the transaction is made in cash, select the cash ledger. This step ensures the customer’s details are correctly linked to the invoice.
3. Use a common sales ledger with no GST rate
Select a common sales ledger where no GST rate is predefined. This ensures the GST is calculated dynamically, based on the tax rate associated with individual stock items rather than the ledger itself.
4. Select stock items with predefined GST rates
Add stock items that already have the correct GST rate defined in their configuration. Enter the quantity and rate for each item. The inventory management software will automatically calculate the tax components as per the rate defined at the item level.
5. Apply central and state tax ledgers
Once item details are entered, pick the respective central and state tax ledgers. The GST will now be split into CGST and SGST, or IGST in the case of inter-state transactions, based on the details configured in the stock items.
6. View a detailed breakdown of tax
To review the invoice’s tax summary, press Ctrl+O (Related Reports) and select or type GST – Tax Analysis. Then press Alt+F5 (Detailed) to see a line-by-line breakdown of tax amounts. This gives clarity on how each tax rate has been applied.
7. Print the invoice with a few keystrokes
Any good GST invoicing software will provide a user-friendly way to print invoices that meet legal formats. On the sales voucher screen, you can simply press Alt + P to initiate printing.
If you wish to customise the print layout, just press F12 on the same screen. This allows you to configure the format, fields, and additional preferences for printing.
Conclusion
Generating GST invoices has become remarkably simple with the right software in place. By following just a few structured steps, businesses can ensure compliance, save time, and maintain professional standards with each invoice. Whether it’s calculation, validation, or printing, your invoicing process can now be smooth, swift, and stress-free.