To a small or medium-sized Indian-based business (SME), the invoice is not merely a bill, but it is an essential legal and compliance document. Creating an invoice in GST-ready format is a risky and time-consuming process that can easily be subject to errors, penalties and late payments. However, the best thing is that this process is fully automated by modern mobile and desktop applications. It is a step-by-step guide to creating a professional, GST-compliant invoice with any reputable business application. We will also bring to the fore how an effective tool such as Vyapar can transform this obligatory task into an automated process that is a smooth part of your daily activities.
No matter what software you are using, a GST-compliant invoice should include certain mandatory information that should be valid in accordance with the Indian tax legislation. The workflow any good billing app has to use is universal and it is presented below:
Your app must understand two important things before you make your first bill; what your name is and what you are billing. You only need to enter your full business details once: legal name, address, contact details, and most importantly, GSTIN (Goods and Services Tax Identification Number). Then, you store the profile of your customer. In case of the business-to-business (B2B) transactions, this should also contain the GSTIN of the customer, their billing and shipping address.
The App Advantage: The profiles are safely stored in a dedicated app such as Vyapar, so that repeated data entry to make new transactions is done away with. The moment a customer is registered, the customer is immediately prepared in case of all the further invoices.
Each invoice should be identified and have a clear context. The application should produce a distinctive, serial invoice code (e.g., INV/FY24-25/0001) the compliance requirement. You will also note down the Date of Issue and will choose the Place of Supply. The latter detail is important because the type of tax depends on the state chosen (IGST, or CGST + SGST).
This is the meat of the matter, and what you have sold and the tax level. You are to include the clear, itemised Description of Goods/Services, as well as the obligatory HSN Code (when it is a good) or SAC Code (when it is a service). This is succeeded by the quantity, unit, and the rate to reach the taxable value before GST.
Smart Software in Action: A smart application can be used to store all products/service catalogs, pre-allocating the appropriate HSN/SAC code and GST rate that should be applied to each item. This pre-configuration is a real time-saver as it is fast and ensures accuracy in taxes.
The highest source of billing error is through manual calculation, and that is where digital billing is the best. Depending on the Place of Supply and the GST saved rate of an item, the app automatically calculates and breaks down the tax amount. It appropriately uses CGST + SGST within the same state or IGST where the sales are inter-state. The app tabulates and then carefully calculates the subtotal, the total amount of taxes, and lastly, the Grand Total (including taxes) to be rendered in figures and words.
The app takes care of the invoice even after the sale. You are able to include your approved online or visual signature and your company brand so as to look personal and professional. Above all, you are able to share the GST invoice instantly through WhatsApp, Email, or SMS, or print it easily. The status of the invoice is automatically changed to Outstanding and monitored until the moment of the reconciliation of the payment.
Vyapar is designed to cater to the Indian SME it comes with rich features without unnecessary complexity. It incorporates the universal 5-step process into one workflow that is easy to follow:
It is no longer necessary to create a GST-ready invoice in a baffling manual process; just a smart, dedicated application is needed. With a complete tool, you can not only be sure that you will comply and will not pay fines that can cost you much, but you will also increase your cash flow significantly and make your customers see you in an extremely positive light.
Vyapar makes your mobile device a full billing and accounting landscape, so that your enterprise remains correct, compliant, and always ready to grow.
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