Tax Invoice Under GST(Mathematics)

A tax invoice is a bill issued by a registered GST dealer showing details of goods or services supplied, taxable value, GST charged (CGST, SGST or IGST), and total amount payable.

GSTIN is a 15-digit alphanumeric identification number allotted to every registered GST dealer for the purpose of tax administration.

• Mandatory for dealers with turnover above ₹20 lakh.

• Structure of GSTIN:

  Part of GSTIN	Meaning
  First 2 characters	State code
  Next 10 characters	PAN of the business
  13th character	Entity number
  14th character	Usually the letter ‘Z’
  15th character	Check digit

Definition: HSN Code

HSN (Harmonised System of Nomenclature) is a numerical code used for the classification of goods under GST.

Definition: SAC Code

SAC (Services Accounting Code) is a numerical code used for the classification of services under GST.

\[ \text{GST} = \text{Taxable Value} \times \text{GST Rate} \]

For an intra-state sale, GST is generally divided into two equal parts:

\[ \text{CGST} = \frac{\text{GST}}{2} \]

\[ \text{SGST} = \frac{\text{GST}}{2} \]

\[ \text{Invoice Value} = \text{Taxable Value} + \text{CGST} + \text{SGST} \]

Remember:

For intra-state transactions, CGST and SGST are usually equal. Together, they make up the total GST.

• GST is an indirect tax on the supply of goods and services.

• A tax invoice records the sale and the GST charged.

• GSTIN is the 15-character identification number of a GST-registered business.

• HSN code classifies goods.

• SAC code classifies services.

• Taxable value is the value on which GST is calculated.

• CGST and SGST are equal parts of total GST for intra-state transactions.

• Invoice value = Taxable value + CGST + SGST.

• Apply discounts before calculating GST, unless the question says otherwise.