India Invoice Template

Create free India invoices online with VAT/GST

VAT is known as GST in India and is collected via electronic filing. With various rates and requirements, one way to simplify your VAT filing is to use invoice templates to create compliant invoices for all transactions. Build your VAT-compliant invoice for India today.

Invoicing in India

In India, all taxable sales and services must be accompanied by a compliant GST invoice containing a number of relevant details. These records can be electronic and should be retained for at least 6 years in case of an audit. The HSN code is a number recognized worldwide as corresponding to a unique product. The systematic classification of goods using uniform 6-digit codes is globally accepted and promotes ease of trade and commerce. Suppliers must maintain accurate records using GST compliant invoices.

India Invoice Requirements

βœ” Date of invoice
βœ” Unique invoice number
βœ” Authorized digital signature
βœ” Customer personal details
βœ” Customer GST number
βœ” GST registration number (GSTIN)
βœ” State where goods are supplied
βœ” Details of any discounts
βœ” Total cost of supplies before GST
βœ” Details of taxable goods or services (including HSN)*
βœ” Details of applied GST rates (CGST, SGST, and IGST)
βœ” Supplier details (including business number, name, and address)

VAT in India

The enforcement of tax collection in India is by state and is structured to combine center or federal components and state-specific components. In India, these taxes are referred to as GST (Goods & Service Tax), with GST directed federally called CGST (Centre) and SGST (State). When goods or services are supplied across states, the GST collected will also include integrated GST (IGST) that is paid to the central government. IGST also applies to goods imported into India. The combination of these components is the GST, with the separate components paid out to the relevant authority. There are 29 Indian states, each with its own SGST, but the standard rate of state VAT will be between 12.5%-15%.

At the central level, the authority responsible for VAT/GST is the Central Board of Indirect Taxes & Customs (CBIC), a division of the federal department of revenue. Tax authorities at the state level vary.

India VAT/GST Rates

India Invoice VAT & GST Rates

VAT Rates in India

GST Rates Goods/Services Included
NIL (0%) Basic goods
1% Luxury goods: gold, jewellery
4-5% Daily consumption goods: oil, tea, coffee
12%-15% General: most consumer goods and services
Up to 28% Vice goods: liquor, tobacco

The GST implementation guidelines and rules vary from state to state. This means that GST registered businesses will typically file three separate GST returns in each state where they operate as well as an annual GST return.

Registering for VAT/GST in India

There are a number of conditions where it is required for individual sellers and suppliers or businesses to register for VAT in India. The minimum annual turnover for VAT registration in India is Rs.5 lakh or $6,530. Any business with yearly revenue exceeding this amount and derived from the supply of goods or services liable for VAT must register in the state or states where their business is being conducted. When registering for VAT, businesses will receive a unique 11-digit registration number that will be used for all VAT-related communication and filing.

Registering as a Non-Resident for VAT in India

To register as a non-resident taxable person, you will be required to digitally sign and submit an application form directly to the relevant tax authority, along with a copy of a valid passport and a tax identification number from your country of origin. Once you have applied for VAT registration through the online Common Portal, you will receive an electronic reference number so that you can begin depositing and claiming VAT. All non-resident taxable persons must register for VAT/GST regardless of annual turnover at least five days prior to commencing business.

Depending on the turnover and type of goods or services supplied, VAT is filed on a monthly or quarterly basis.

The following documents are required for VAT/GST registration in India:

βœ” PAN number

βœ” Personal information

βœ” Registered business name and address

βœ” Security deposit or surety towards GST payment

βœ”Keeping inventory or maintaining warehouse in UK

VAT/GST Returns in India

Indirect tax returns are filed by all businesses that have an annual turnover above Rs.5 lakhs and those without Indian residency and can be filed online. When filing, you will be required to include all relevant sales invoices and receipts of business-related purchases. These are the two components of VAT: input and output tax.

Output Tax

Output tax is VAT collected from the end customer by a supplier of taxable goods or services. All registered suppliers are required to charge tax on sales.

Input Tax

Input tax is any taxes paid by the supplier on business-related purchases and expenses. Registering for VAT/GST lets suppliers claim back taxes on such expenses in the form of input tax credits. If you have paid more VAT/GST on operational costs than you have collected from the supply of taxable goods or services, you will be able to reclaim the difference.

In order to supply accurate tax details to the relevant authorities, all tax liable and registered persons or entities must provide GST-compliant invoices. To make it more likely that you will be able to reclaim VAT/GST when you file, it is also recommended to retain all receipts for business-related expenses.

How to reclaim your VAT
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