What is GST Invoice?

An invoice is a key element of the sales process. It is the prime document that serves as a bill for
the service/s or product/s your business has provided.

As per GST laws, every supplier who has acquired GST registration in India has to issue an
invoice in the pre notified format, while supplying goods or services.

Meaning every business transaction effected of nature involving removal of goods for supply to
recipient or provision of service to recipient can only be executed by issue of invoices to
recipient, irrespective of whether such supplier operates such business online or offline.

What should a GST Invoice contain?

A GST invoice must contain the following

 Name, address and Goods and Services Tax Identification Number of the supplier.
 A consecutive serial number not exceeding sixteen characters, in one or multiple series,
containing alphabets or numerals or special characters - hyphen or dash and slash symbolised as
‘_’ and “/” respectively, and any combination thereof, unique for a financial year;
 Date of its issue
 Name, address and Goods and Services Tax Identification Number or Unique Identity
Number, if registered, of the recipient
 Name and address of the recipient and the address of delivery, along with the name of the
State and its code, if such recipient is un-registered and where the value of the taxable supply is
fifty thousand rupees or more
 Name and address of the recipient and the address of delivery, along with the name of the
State and its code, if such recipient is un-registered and where the value of the taxable supply is
less than fifty thousand rupees and the recipient requests that such details be recorded in the tax
invoice
 Harmonised System of Nomenclature code for goods and or Service Accounting Codes
for services
 Description of goods or services
 Quantity in case of goods and unit or Unique Quantity Code thereof
 Total value of supply of goods or services or both
 Taxable value of the supply of goods or services or both taking into account discount or
abatement, if any
 Rate of tax (central tax, State tax, integrated tax, Union territory tax or cess)
 Amount of tax charged in respect of taxable goods or services (central tax, State tax,
integrated tax, Union territory tax or cess)
 Place of supply along with the name of the State, in the case of a supply in the course of
inter State trade or commerce
 Address of delivery where the same is different from the place of supply
 Whether the tax is payable on reverse charge basis; and
 Signature or digital signature of the supplier or his authorised representative

Types of Sales and Ledger Creation

Sales can be of two types:

 Local Sales on which CGSTand SGST are applicable

 Intestate Sales on which IGSTis applicable

Before making sales entry in Tally, one needs to create ledgers related to sales to prepare a GST
invoice.

Ledgers to be created

Ledger Name Under Description

Local Sales/ Intra Sales Accounts To effect sales made within the state boundaries
State Sales
Interstate Sales Sales Accounts To effect sales made outside the state boundaries
CGST Duties and Taxes Central Goods and Service Tax and State Goods
SGST and Service Tax ledger will be used in case of
IGST/ UTGST intra state sales. Integrated Goods and Service
Tax/ Union Territory Goods and service tax
ledger will be selected in case of Inter State
Sales or sales made to Union Territory.
Item Name Creating And classifying the goods and or services by
Inventory Item providing details such as
using Inventory
Voucher · Item Description

· HSN/SAC code details

· GST Tax Classification:

· Applicability from;
 · Is non GST goods?

· Taxability;

· Is reverse charge applicable;

· Tax Type : IGST/CGST/SGST/Cess

Party Ledger Under Sundry Under Party account, one must also mention
Debtors whether the party is composite dealer,
consumer, registered or unregistered dealer.
How to Create GST Invoice Using Tally.ERP 9?
Mapping: Gateway of Tally > Accounting Voucher (using keyboard navigation keys Up/down
left/right arrows)

Short route: From Gateway of Tally > Press alphabet V on the keyboard to open Accounting
Voucher book

Steps involved

Step 1 Go to Gateway of Tally > Accounting Vouchers > F8 Sales. Against invoice
number, write the serial number of the bill, strictly following the Invoicing
rules as mentioned above.
Step 2 In Party A/c name column, select the party ledger or the cash ledger. Note : If
party ledger is selected and provided that the recipient is registered dealer
then it becomes important to provide correct GST details of such recipient so
as to enable error free generation of GSTR 1 report.
Step 3 Select the relevant sales ledger. Note: If it is local sale ,then select sales
ledger for local taxable sales and if it is interstate sale, then select the sales
ledger for interstate sales.
Step 4 Select the required Inventory item created, and specify the quantities and
rates.
Step 5 In case of local sales, select the central and state tax ledger. If it is interstate
sales, select the integrated tax ledger.
Step 6 Finally click on Yes and enter to accept the GST Invoice prepared
Like wise, depending on the requirements, one can include additional details in GST Tax invoice
by clicking F 12 : Configure such as buyer’s order no, delivery note no, Additional description
for products, inclusive of tax column etc.

Printing GST Invoice in Tally

On accepting the sales voucher, Tally will automatically display the printing configuration screen
with Question Print or Not. If you leave without printing even then you can access the voucher in
alteration mode, or by just pressing page up button immediately after saving the sales voucher.
Now click print button or use short cut key “Alt + P”. Make necessary changes in the
configuration screen. We can select number of copies & the printers to be sent for printing from
this screen. As per GST rules 3 copies of invoice shall be taken in case you are selling goods
with transportation - Original for buyer, Duplicate for transporter and Triplicate for retaining at
seller premises.

Added Customization Wings with Respect to Invoicing in Tally.ERP 9

Add – on facility Description

Print Sales Invoice with Authorized This add on facilitates the user to print GST Tax Invoice
Signature with Pre Inserted Authorized Signature.
Autofill distance E way bill This add on will allows the users to store this information
in the ledger master itself and auto-fill the information in
the E way bill. This will make the data entry faster and
error free
GST Tax Invoice 6.4 With help of this add on, one can print out the GST Tax
invoice in efficient way. It shows GST rate and amount to
each line of item so that it is clear about for the buyer to
understand tax percentages and amount applied for item.
Last sales price of stock item for party With this Add on, one can come to know about the
1.9 previous sales price and last discount offered for a stock
item to a particular customer at the time of invoicing.
Scenario: A trader has sold item XYZ to a customer A.
After two months Customer A purchases the item XYZ
again. By using Tally ERP solution while recording an
GST invoice trader will come to know the previous sale
price and discount offered to customer A on purchase of
item XYZ. This will help trader in taking an informed
decision about future price and discount.
Print product wise inclusive of tax · Users can print product wise tax amount
amount 6.2
· Customer can easily Understand the Invoice;

· This add on easily Configure Tally in best way.

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