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 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 a taxpayer should avoid as he prepares his/her 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 “Effective 1st April 2019, 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 Sapphire 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 Sapphire 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 Sapphire’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.
IRIS GST is a GST Suvidha Provider (GSP) in India, that offers you premium GST Compliance tools like IRIS Sapphire, IRIS Garnet, IRIS Peridot, to help you file and comply with GST regulations without any hassle.
For any queries, feel free to connect with us at firstname.lastname@example.org.