Learn How to Create a GST Invoice in Excel and the Impact of GST on Real Estate

What is a GST invoice?

Invoices are documents that serve as evidence of goods or services 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. Learning how to create a GST invoice format in Excel is the need of these times. Therefore, knowledge of it is crucial for each person. The GST law makes it mandatory for registered taxpayers to issue invoices for the sale of goods or services. This is because the tax invoice not only facilitates the seller to collect payments but also avail input tax credit under the GST regime.

Rules for Creating the Invoice:

Before creating a GST invoice format in Excel, there are certain rules that you must keep in mind.  In accordance with the government, a tax invoice referred to in Section 31 shall be issued by the registered person and contain the following information.

●    Supplier’s Details:

The name, address and the GSTIN of the supplier

●    Recipient’s Details (if registered):

The name, address, and GSTIN of the taxpayer

●    Recipient’s Details (if unregistered under GST and the value of taxable supply is 50,000 or more)

Name and address of the taxpayer and the delivery address as well as the name of the state and the respective state code.

●    Details of Supply

  • Quantity, in the case of goods
  • Description of goods or services
  • The total amount on the supply of goods or services
  • The taxable amount on the supply of goods or services
  • The GST rate for the particular service or goods
  • The place of supply and with the name of the state
  • Harmonized System of Nomenclature (HSN) Code or the Accounting Code of services

●    Other Information:

  • Date of its issue
  • Reverse charge basis on the payment of taxes
  • A digital signature of the representative for the authorized supplier

Format of the GST invoice in Excel:

You need not download any new software in order to create the invoice. Creating a GST invoice format in Excel is quite simple and super smart as per the GST revised rules. There is no need for an internet connection for this. Moreover, using it becomes very simple and easy once you learn how to create the GST invoice format in Excel.

Primary Headings

There are broadly five primary headings that need to be taken into consideration while creating the GST invoice format in Excel.

  • The header section contains the basic details of the company such as its name, address, and an official logo.
  • The customer details section consists of the name of the customer, his/her address, GSTIN, invoice number, and the invoice date. Under GST tax, there is a GSTIN code that is issued to every person registered under GST. It is important that this code is mentioned on every invoice that is issued. Along with it, there is a serial number that has to be unique for a financial year. It would help in distinguishing it easily.
  • The product and tax details section include the details mentioned above in the details of supply.
  • Then comes the billing summary section which specifies the total amount to be paid by the consumer.
  • Lastly, the signature of the receiver and accountants is needed. The main advantage of these Excel invoice templates is that you do not have to create your GST invoice from scratch. There are links available online for downloading the GST invoice format in Excel and are free to use.

Impact of GST on Real Estate

Real estate is one of the most significant sectors of the Indian economy and accounts for 6-8% of its GDP. With the implementation of GST, it goes without saying that there will be some significant changes in this sector. With the introduction of GST and its modifications, the impact of GST on real estate is that the transparency and accountability in the real estate sector have increased.

  • With effect from 1st April, 2019 GST is levied at the rate of 5% without ITC on the residential house properties outside the affordable residential apartments and 1% without ITC on affordable residential apartments. Properties that had completed construction and had a certificate were completely exempted from tax while under-construction flats were placed in the 5% tax segment. Therefore, the impact of GST on real estate was that as compared to the properties in construction, there was an obvious increase in interest towards completed properties.
  • Intermediate tax on the development rights such as TDR, JDA, lease (premium), FSI shall be exempted only for such residential house property on which GST has been payable.
  • A notable impact of GST on real estate is that because of the other taxes linked with materials utilized for construction, the cost of overall construction rose and hence, this segment had fewer investments from the buyers. The delays linked with under-construction units and the developers filing for insolvency also influenced the engagement of buyers.
  • On account of the removal of ITC benefits and exemption of stamp duty and registration charges, the overall price of the property did not undergo a significant change in terms of pricing.
  • A significant impact of GST on real estate was that affordable housing units or those under the economic segment became a more lucrative option with 1% GST on them.

However, despite all the positives, there are some factors that still discourage investments done in this area. The two primary negative aspects of GST on real estate are as follows.

  • One of the main reasons being the complicated process of calculating GST and the confusion that is frequently associated with the procedure.
  • Another demerit of the introduction of GST on real estate is the Reverse Charge Mechanism. It states that if a person registered under GST procures goods or services from a person who is not registered under GST, then GST will be levied on the person receiving the goods or services for that transaction.

These were the noteworthy impacts of GST on real estate.

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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