GST and compliance
7 GST invoicing mistakes manufacturers make, and how to avoid them
IndustryX Suite Team 1 min read
1. Wrong or missing HSN codes
Every item should carry the right HSN code and GST rate in its master record. Fix it once there and every invoice is right.
2. Wrong tax type
Sales within a state carry CGST and SGST, and sales between states carry IGST. The place of supply decides it, so check the customer's state and GSTIN on the order.
3. Missing e-invoice
If your turnover is covered by the e-invoicing rules, an invoice without an IRN is not a valid e-invoice. Generate it from the saved invoice. See what an e-invoice is.
4. Moving goods without an e-way bill
Consignments above the prescribed value moving by road need an e-way bill. Generate it before the vehicle leaves.
5. Editing an invoice instead of issuing a credit note
Once an invoice is issued, corrections should be made through a credit note or debit note, linked to the original invoice.
6. Not matching purchase invoices
Input tax credit depends on the supplier's invoice appearing in their returns. Reconcile your purchases against what is reported each month.
7. Missing reverse charge
For notified supplies and some purchases from unregistered suppliers, you may need to pay tax under reverse charge. Flag these in your purchase process.
A good habit
Keep GST rules in your masters and let the ERP apply them, rather than relying on each person to remember. For current limits and rates, confirm with your CA.