Place of Supply and Documentation in Intra-State Transactions: Invoices and Supporting Documents

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Published Date:  12-02-2024   Author:   eva-mukherjee
captainbiz place of supply and documentation in intra state transactions invoices and supporting documents

Whether you are a registered individual or a business owner, you must issue a valid tax invoice at the time of or before delivering the goods for supply to a recipient. However, tax invoices and related documentation should be according to the GST laws applicable for the place of supply in the transaction of goods.  

Here, you will learn a few GST laws for intra-state supply documentation and GST invoicing methods for the transaction of goods. However, before we should go into detail, you should get an overview of intra-state transactions.

Overview of Intrastate Supply in GST of India

Intrastate supply implies the supply of goods and services, which take place within the geographical boundaries of a particular state. According to the GST rule, both the recipient and the supplier belong to the same state in an intrastate supply.

Contents of the Tax Invoice for Intrastate Transaction under GST Rules

Tax invoices for intrastate transactions should highlight information under the following prime heads-

  • Name of the supplier, his present address, and a valid GSTIN (GST Identification Number)
  • Tax invoice numbers to a maximum of 16 characters generated consecutively and every tax invoice should possess a unique number for the respective financial year
  • Issue date of the tax invoice 
  • Name, GSTIN, and address of the buyer if he is also a registered individual 
  • If the recipient is a non-registered individual and the transaction value exceeds Rs. 50,000, the invoice must carry a few additional details. These are the recipient’s name and address, delivery address, and the state’s name with its code.  
  • Detailed description of the goods and services 
  • HSN code of different goods 
  • Goods’ quantity and its unit in kg or meter
  • Total supply value of goods and services 
  • Taxable supply value after the discount adjustment 
  • Clear details about the applicable GST rates, which are SCGST and CGST in intrastate transaction
  • Tax amount with breakups of SCGST and CGST
  • Supply place and the destination name 
  • Delivery address if it is other than the supply place 
  • Details on any GST payable as per reverse charge 
  • A valid signature of the intrastate supplier or any of his authorized representatives

Key Points to Prepare Tax Invoices for a Successful Intrastate Transaction

Preparation Points  Tax Invoice Rules 
Place of supply  Both supplier’s location and supply places are the same
Type of GST applicable  Both CGST and SGST are applicable 
Invoice format Separate highlight of CGST and SGST amounts 
HSN Codes Highlight the classified goods available for transaction
Invoice details and format GSTIN of a supplier and a recipient, issuing date, invoice number, description of different goods, value, quantity, and applicable GST type
Timely Filing of GST Returns

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GSTR 1 and GSTR 3B

Also Read: Tax Invoice for Inter-state and Intra-state Supply of Services: Compliance Considerations

Place of Supply

Supply place or place of supply plays a prime role in both taxation and other record-keeping in intrastate transactions. In the case of intrastate supply, both the location of the supplier and the supply place are the same.

Also Read: Understanding Place of Supply in GST: Key Principles & Implications

Application of the Type of GST

Intrastate transactions levy both State Goods and Services Tax and Central Goods and Services Tax. Alternatively, if the transaction of goods occurs in a Union Territory of India, UTGST is applicable in place of SGST. CGST and SGST are two different GST components, where CGST goes to the central government while the SGST or UTGST goes to the respective Indian state or union territory.  

Invoice Format for Intrastate Supply

Invoices for intrastate transactions should highlight both CGST and SGST amounts separately. Such bifurcation makes sure that both central and state governments collect the respective taxes appropriately.  

Appropriate HSN Codes

Invoices for every intrastate supply of goods must incorporate the appropriate HSN codes for the transported goods. HSN is the acronym for Harmonized System of Nomenclature and it classifies goods to fulfill certain GST purposes. Also, HSN codes maintain the necessary invoice and tax compliance.  

Invoice Details and Format

The invoice prepared for intrastate supply must comply strictly with the format prescribed in the taxation and documentation guidelines for intrastate supply. Accordingly, it should contain the details, like the GSTIN of a supplier and a recipient, issuing date, invoice number, description of different goods, value, quantity, and applicable GST type. 

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Timely Filing of GST Returns

Every business must file its GST returns timely associated with the intrastate supply of goods. These returns consist of GSTR 1 submission to accomplish outward supply, GSTR 3B to achieve summary returns, and related applicable returns according to the specific business type or its nature.

Supporting Documents to Get GST Registration for Intrastate Supply 

Every person or business owner who wants to be involved in taxable intrastate goods or services supply and possesses an annual turnover exceeding Rs 20 lakhs should get a GST registration. GST registration number consists of a unique identification number of 15 digits and it refers to the GST Identification Number. 

Tax authorities allocate this number to monitor diverse tax payments and other necessary compliances of a registered individual. Companies and businesses require supporting documents in intrastate supply transactions. Such documents will be of diverse sets depending on the business they form or a specific type of GST registration they want to collect from the Indian Government. 

According to the documentation guidelines for intrastate supply, every business owner should possess the following documents to accomplish intrastate transactions-

Business/Individual Category GST Registration Documents 
Individual or Sole Proprietor 
  • The Aadhar Card and PAN Card of the proprietor
  • A passport-size photograph of the proprietor
  • A valid address 
  • Bank account details 

 

LLP or Partnership Business 
  • Aadhar card and PAN card of every business partner (both authorized signatory and managing partner)
  • Partnership deed copy
  • Photograph of every partner and authorized signatory
  • Address proof of the involved partners
  • Appointment proof of every authorized signatory
  • LLP Board resolution or its registration certificate
  • Address proof of the principal business place
  • Bank account details 
Public Limited and Private Limited Companies 
  • The Ministry of Corporate Affairs issued a Certificate of Incorporation
  • PAN Card of your company
  • Articles of Association or Memorandum of Association
  • Aadhar Card and PAN Card of the authorized signatory 
  • Address proof of every director in a company
  • Photograph of every director and their authorized signatories 
  • Authorized signatory appointed by the board resolution
  • Address proof of the principal business place
  • Bank account details

Note Points-

Authorized Signatory

The authorized signatory should compulsorily be an Indian-origin person even when he is the director of a foreign company or a branch of any foreign company in India.  

Bank Account Details

Bank account details for every type of business venture must consist of the latest one-year bank statement or passbook print. Besides, your bank account details should also contain a copy of a canceled cheque. Make sure to upload both documents to complete your GST registration. 

Address Proof

You should upload either of the following documents as your address proof-

  • Receipt of your company/business property tax 
  • Electricity bill or Municipal khata copy 
  • If you have any owned property, you should get an ownership document or its deed
  • Rent agreement or lease if you own any rented or leased property 
  • Consent letter or an NOC if you operate a business from a shared property or a consent arrangement

Conclusion

The owner of every company or business venture should understand the rules related to invoicing and supporting documents in intrastate supply. The knowledge will ensure legal tax compliance, appropriate GST calculations, and effective processing of the entire transaction. Therefore, follow the invoicing and documentation rules and let your business grow in the future.

Also Read: What is An Intra-State Supply?

Frequently Asked Questions

  • What is contained in the documentation of intrastate goods’ supply?

The documentation associated with the intrastate supply of goods contains trade details, product quantities, and prices with information about sellers and buyers.

  • What are the objectives of tax invoices and documentation in intrastate supply?

Both tax invoices and documentation for intrastate supply of goods track inventories, validate transactions, and ensure compliance with the updated GST regulations.

  • Why place of supply is a crucial aspect of GST?

Place of supply documentation highlights intrastate or interstate transactions. Indeed, when you document everything correctly, the Indian government may apply CGST, SGST, or both.

  • What must be present in a GST invoice?

Every GST invoice or tax invoice should contain details about the transported goods. These include details of the item, its price, and quantity. Moreover, the invoice should brief the applicable GST rates separately, the place of supply, and the overall invoice value. 

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Eva Mukherjee

Eva has expertise in writing content in diverse niches, including the latest rules and norms related to CGST Act, Stock Market and Shares.

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