Invoicing in Tally.ERP 9

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 affected by nature involving removal of goods for supply to recipient or provision of service to the recipient can only be executed by the issue of invoices to the 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 symbolized 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 a reverse charge basis; and
• Signature or digital signature of the supplier or his authorized 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 entries in Tally, one needs to create ledgers related to sales to prepare a GST invoice.

Ledgers to be created