Under the Goods and Services Tax (GST) regime in India, certain goods and services are exempted from GST, meaning no tax is levied on them. Businesses must still issue invoices for exempted goods or services, but these invoices will not include any GST amounts. If you’re looking to create a GST-exempted invoice manually without relying on websites or online tools, this guide will help you.

How to Issue an Exempted GST Invoice

Even though you are not charging GST on the invoice, it must still include certain key details as per the GST invoice format. Below is a step-by-step guide to help you create a proper exempted GST invoice manually.

1. Start with Basic Information

           Supplier Details:

• • Name of the supplier/business.
  • Supplier’s GSTIN (Goods and Services Tax Identification Number).
  • Full address of the supplier.
  • Contact information (phone number/email).

           Recipient Details:

• • Name of the recipient (business or individual).
  • Recipient’s GSTIN (if applicable).
  • Full address of the recipient.
  • Contact details.

           Invoice Information:

• •  Invoice Number: Ensure that the invoice number is unique and sequential.
  • Invoice Date: The date when the invoice is issued.
  • Transaction Type: B2B (Business to Business) or B2C (Business to Customer).
  • Place of Supply: Mention the state or location of supply.

2. Add Details of Goods/Services

• • Quantity and Unit Price: Specify the quantity and the price per unit for goods/services.
  • Total Value: The value of the goods or services, excluding GST.

 Total Value: ₹6000
Total GST: Exempted from GST

3. State “Exempted from GST”

• • “Exempted from GST under Notification No. [insert relevant notification number] / Exempt from GST”

4. Avoid Adding GST Amount

• • Since the goods or services are exempt from GST, do not include any GST breakdowns such as CGST, SGST, or IGST. There should be no column for tax amounts in the invoice.

5. Payment Terms and Other Information

• • Payment Terms: For example, “Payment due within 15 days” or “Payment due on receipt of goods/services.”
  • Bank Details: If you are expecting payment via bank transfer, include your account details.

6. Discount in GST

• • Pre-discount (before GST calculation): A discount offered to the customer before applying the GST on the goods or services.
  • Post-discount (after GST calculation): A discount offered after the GST has been applied to the total amount.

Conclusion

            Issuing an exempted GST invoice is a straightforward process once you understand the necessary components. Even though you aren’t charging any GST, it’s essential to follow the right format to stay compliant with the GST law and provide proper documentation for your business transactions. Make sure to include clear information about the exemption and avoid any GST-related charges.