Invoicing your sales, no matter how basic it may sound, is an essential aspect of business that every taxpayer registered under GST needs to master. A well-prepared GST invoice data not only helps you keep a track of your business growth and sale but also saves you any last minute hassle and mishaps while filing your GST returns.

Thus, having said that, let us look into the 12 common mistakes taxpayers should avoid as they prepares their GST invoice data:

1. Counterparty GSTIN

The taxpayer should ensure the GSTIN of the counterparty has been entered correctly without any typographical error or skipping any digits. In order to ensure a valid GSTIN is being entered, the taxpayer can use IRIS Peridot and get detailed information of the given GSTIN.

2. Taxpayer Type

Under GST, a taxpayer can be registered under different categories, such as Regular, SEZ, etc. These taxpayers are subject to tax schemes as applicable to their category. Thus, the supplier should ensure right taxpayer type is being entered while creating counterparty masters. If you are unsure about your counterparty’s registration type, you can simply scan his/her GSTIN with IRIS Peridot and get his/her taxpayer type through the GSTIN search.

3. Serial Number

The tax invoice issued by a registered person should have 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. In case your invoice data consists of such characters, you can try IRIS Garnet to instantly remove these special characters from invoice number.
P.S: You can refer our Blog on “Reset the Invoice number series: GST Advisory” for further information.

4. Invoice Value

The taxpayer is required to calculate the invoice value at the invoice level. If your invoice value is at line item level you are required to calculate the same at invoice level using ‘sumif’ function of Excel.

5. Date Format

Invoice date and Note date should be in DD-MM-YYYY format. You can also use IRIS Garnet to convert the date format for bulk invoices.

6. Reverse Charge Applicability

The taxpayer needs to ensure whether the reverse charge is applicable on any of his/her transaction and the same needs to filled accordingly. Faulty filing under RCM can result in addition to liabilities applicable to the taxpayer.

7. Place of Supply

Place of Supply should be properly filled. As the place of supply is the one which decides whether the supply is Inter-state or Intra-state. IRIS GST Software can help you derive the Place of Supply for your counterparties who are registered under GST.

8. Applicable Tax Rate

While preparing the invoice data, the taxpayer should ensure the tax rates calculated are at line-item level. Also, the taxpayer is also responsible to assure the rates calculated are in accordance with GSTN.

9. Type of Supply

The taxpayer is required to aggregate the B2CS, Nil rated, Exempted and Non-GST Supplies accordingly. If the system gives the details at invoice level, IRIS GST Software can help you calculate the aggregated value and send the same to GSTN.

10. HSN Summary

HSN Summary should include a summary of all invoices having HSN/SAC. This should be represented at the HSN/SAC level. Under such circumstances, IRIS Sapphire not only helps to get the correct HSN/SAC and tax rate for any type of Goods/Services it also calculates HSN Summary.

11. Purchase Register Entry

While entering details in the purchase register, the details provided by supplier need to be mentioned as it is. In case there is a mismatch in details the taxpayer can use IRIS GST Software‘s reconciliation tool and maximise his/her ITC.

12. Value Format

Invoice value and taxable value should only be in number format and should not include any other characters similar to the invoice serial number. As mentioned before, you can rectify these values using IRIS Garnet, and convert the invoice value in the required format.

13.  IRN Generation

If a taxpayer has crossed the e-invoicing threshold, then it is important for them to generate e-invoices. As per the e-invoicing mandate, an invoice is considered invalid without an IRN and QR Code printed on it. If you have crossed the e-invoicing threshold but are exempted from generation of e-invoice, then you need to mention the same on invoice copy.

You can use IRIS IRP to generate e-invoices for your business. With IRIS IRP, you can prepare a single e-invoice via our tool or bulk generate IRN through the excel utility, pull IRN in your ERP via API Integration or custom print invoices using an awesome cloud platform! 

Best software to reconcile GST data faster and ensure 100% compliance

As a registered taxpayer, reconciling your purchase invoices with the supplier uploaded invoices on the GST system is a critical activity as it determines your ITC claim. Further, the Government issues legal notices to taxpayers for discrepancies in the ITC claimed in GSTR 3B and the amount as per supplier uploaded details. Our Smart Reconciliation comes in handy for managing the reconciliation tasks in a timely, efficient and easy manner.

For any queries, feel free to connect with us at support@irisgst.com.