GST Invoice Format Guide
Invoices are instruments that act as evidence of goods or services or both being sold by a business to its customers. These are the documents used by businesses to collect payments from buyers for the underlying sale transactions.
Therefore, invoices contain details such as the goods or services sold, their quantity, price and terms of supply, tax applicable on such goods or services etc.
The GST law makes it necessary for registered taxpayers to issue invoices for the sale of goods or services. This is because the tax invoice not only enables the seller to collect payments, but also avail input tax credit under GST regime.
Now, there are different types of invoices that are issued under the GST law. These depend on various factors such as the type of the registered taxpayer, nature of goods or services supplied, payment terms etc.
For instance, registered taxpayers supplying goods or services of value less than Rs. 200 are not required to issue any invoice. Similarly, taxpayers supplying exempted goods or exempted services under GST need to issue a bill of supply in place of a tax invoice.
Since invoices are needed for purposes ranging from recording sales, collecting input credit, to protecting a business from fraudulent activities etc, these form an indispensable part of your business.
Hence, you must know the format and particulars that go into creating tax invoices so that you can create invoices correctly and undertake business transactions effortlessly.
You can read our GST invoice guide and article on invoices in GST to know GST invoice components and types.
This article will help you learn GST invoice format in Word and Excel and how QuickBooks Online can help you generate GST ready invoices within no time.
Here are the steps you need to follow to create GST invoice using excel:
1. Open Microsoft Excel
Open Microsoft Excel, click on ‘File’ tab and then select ‘New’ from the dropdown. Then, double click on the ‘Blank WorkBook’ to open a fresh excel sheet.
2. Remove Gridlines
To remove the gridlines for preparing the invoice, click on the ‘View’ tab and then uncheck ‘Gridlines’ in the ‘Show/Hide’ section.
3. Upload Company Logo and Heading
Once you have the blank worksheet, click on the ‘Insert’ tab and upload your company logo in the worksheet. Put the header for the document as ‘Tax Invoice’.
4. Add Company Details
After putting the company logo and document heading, the next step is to enter your company details such as company name, address, zip code and GSTIN
5. Add Customer Details
The next section in invoice is the ‘Bill to’ section which contains the details of your customer. Write ‘Bill to’ just below your company details and enter customer information like company name of the customer, address, zip code, GSTIN/UIN.
6. Add Other Details
Further, add other details like the purchase order number (PO) if any, invoice date, invoice number and invoice due date. You can use the formula =TODAY() function in invoice date section for ease since it uses the current day’s date.
Further, say your payment terms are Net 20, that is, 20 days from the bill date. So, you can use the formula =TODAY()+20 for the invoice due date cell for ease.
7. Enter Details of Goods and Services
Then, add goods or services details section that includes goods/ service details, price (per SKU), quantity, discount % if any, tax applicable if any. To make your work easy and use this invoice as a template for future invoices, you can use formulas.
For instance, use the product formula if you have multiple SKUs and their prices. Say, you have to provide 50 units of an item at Rs. 10,000 each, use PRODUCT function to calculate total price of 50 units as Rs. 5,00,000 in the total column. Similarly, you can use the SUM function to calculate total invoice value, adding final values of all SKUs.
8. Provide Bank Details
Towards the end of the invoice, provide your bank details, company PAN and space for your digital signatures.
GST Invoice Format in Word
You can also create a GST invoice using Microsoft Word. Here are the steps to create an invoice in Microsoft Word:
1. Open Microsoft Excel
Open Microsoft Word to have the blank word document.
2. Insert Tables
Click on the ‘Insert’ tab and click on ‘Table’ from the selection window. From the dropdown, select ‘Insert Tables’ and change the number of rows and columns as per your need. Say, you need a 6 by 14 table – that is the one having 6 columns and 14 rows.
3. Adjust Columns
Adjust the size of each column as per the details to be included in a specific column. You can do that by clicking on the ‘Layout’ tab and changing the dimensions in the ‘Width’ section.
4. Enter Company Details
Now enter your company details such as your company name, address, ZIP and GSTIN. For instance, 349/1, ABC View, Street No.9, Grand Road, Gurugram, 122001
5. Add Other Details
Next, provide other details such as the invoice date, purchase order number and invoice due date.
6. Provide Customer Details
Once this information is provided, you need to put down your customer details. These include your customer company name, address, ZIP and GSTIN/UIN details.
7. Add HSN/SAC Codes
Below the customer details, include a section that describes the goods or services sold, HSN/SAC codes, quantity, price, their total amount and GST rates applicable.
Since you will not be able to use formulas in Word, you will have to keep handy all the calculation and put the final figures in the respective sections.
8. Add Bank Details
Towards the end of the invoice, include your bank details such bank name, account number and IFSC code.
9. Provide A Section for Signatures
Finally, provide a section for the signatures of your company’s authorized signatory.
Are Word and Excel Best Choices for Creating Invoices?
Excel is outstanding when it comes to calculating almost everything. Formulas in Excel make calculations like tax amount, total taxable values etc really easy.
Word too helps in creating customized invoices with its broad range of functions like inserting tables, merging cells, design functions etc. However, you need to be ready with the calculations and put them manually in Word.
Both these tools might enable the medium and small business owners to create custom invoices, but these are not the ultimate ways of doing so. QuickBooks Online accounting software helps you create GST ready invoices anytime, anywhere within minutes.
Here are the areas where both Excel and Word fail to help you much with creating GST compliant invoices easily :
Extra Time and Effort
Word and Excel certainly enable business owners to create customized invoices. But these involve extra time and work.
For instance, whenever adding different goods or services, you need to update the same in each invoice template.
Further, sending invoices via email also requires additional effort. This consumes the valuable time of the business owners and hampers their productivity.
Higher Odds of Losing Data
Say for instance, you have all your customer information stored in the excel sheet. Now, looking for specific customers to whom you want to send invoices would involve tremendous search from the excel database.
Further, there are chances of information getting accidentally deleted or your system crashing, making you lose the priceless data.
Incapacity to Create Invoices On the Go
Whenever you create invoice templates on Word and Excel, they remain saved in your system. These do not give you the advantage of creating and sending invoices on the go – say while traveling for a business meeting or in the field at a job site.
Thus, this inability to create and send invoices anytime, anywhere translates into lost time and productivity.
Now, let’s see how you can create custom GST Bills within minutes using QuickBooks Online Accounting Software.
Creating GST Ready Invoices Using QuickBooks Online
QuickBooks has a free online invoice generator that allows you to create customized invoices easily, within no time.
Creating customized GST compliant invoices in QuickBooks Online is simple and intuitive. Here’s all you need to do:
1. Upload Your Company Information
You can begin with adding your company details. These include:
- Company name
- Phone number
- Bank name
- Account Number
- IFSC Code
- Company PAN
Also, with QuickBooks Online, you can customize your invoices by adding colors and using fonts that match your brand style guide. Likewise, changing invoice details can be done with just a few clicks, with no cell formatting and resizing needed.
2. Provide Customer Details
Next, you can easily add all your customers in QuickBooks Online by adding their details. You can also sync your excel sheet with the software to upload the list of customers with their details.
Since all your customers are now saved with QuickBooks Online, pulling specific customer details for raising invoices is really easy. All you need to do is select the specific customer from the dropdown while creating the invoice. The remaining customer information such as billing address, email id gets automatically filled.
3. Provide Product/Service Details
Much like customers and your company information, QuickBooks enables you to to create products/services that your business offers. This helps you to save all your product/service information, know trends items of best selling items etc.
While creating invoice for a specific customer, all you need to do is simply choose the product/service from the dropdown and add description. Further, simply add the tax details with just a few clicks and your GST invoice is good to go.
4. Save and Send
Now, you can save the invoice so created or save and send the same from within the software with just a click.
How Does QuickBooks Online Make Online Invoicing Easy?
With QuickBooks Online, you can create GST ready invoices easily as it:
- has in built data fields necessary for GST compliance that make GST online invoicing easy. So, you save time and effort in preparing GST bill formats manually.
- enables you to customize invoices by adding company logo, enhancing colors or using fonts to match your brand style guide or simply use in built invoice templates
- allows you to import your own invoice formats and map invoice details with QuickBooks data fields
- helps you receive payments faster by creating and sending customized invoices to your customers from any device, wherever you go
GST Invoice Format
Click above image to view GST Invoice Format.