Thanks everyone who has contributed to another topic - India's New GST Invoice Format
Based on the feedback, the latest version (17.6.69) contains a few improvements to handle Indian GST better. There is still some work to do, particularly on tax reports and reverse charged GST however current implementation should be sufficient for most businesses.
Without using custom HTML template, this is an example of invoice you can generate in Manager.
This invoice contains two different tax codes and the amounts are tax exclusive which means tax amount is added to sub-total. Other variations are supported too.
In order to enable Indian numbering system, see: https://www.manager.io/guides/set-number-format/9155
To show HSN column on invoices, you need to create a custom field for
Inventory Items or
Non-Inventory Items or both.
When custom field
HSN is created like this, you can then set HSN value on your items:
When items with
HSN are used on invoice, they will automatically show
GSTIN identifier can be entered under
Business Details for your business and under
Customers tab for individual customers:
When business identifier is entered, it will show under contact details like this:
Create custom tax codes based on the rates you require like this:
The tax name will show as a column on each line item.
Some invoice examples on the Internet show tax amounts being individually calculated on each line item but as per legal requirements this is not required. It’s just a suggestion which is frankly not a good one. What’s important is to mention correct tax name such as
CGST 14% + SGST 14%.
As per legal requirements, it’s important to show totals per each tax type. This is what you should see in Manager.
Or if you are issuing invoices where amounts are tax inclusive, then you will see:
Total in words
Not sure if this is a legal requirement but it’s a common request among Indian users. If you set your currency to Indian Rupees, Manager will automatically inject spelled out total as a custom field.
Current limitations which are going be resolved
- Tax reports will need to be improved to better report on tax codes with multiple tax components but this is something that is generic requirement.
- Reverse charged GST not supported yet. In theory it works similar to withholding taxes which are already supported. I want to get this feature right. It’s not just about placing some note on an invoice, it has implications on your liabilities as per double-entry accounting principles.
This guidance doesn’t rely on custom templates. This is because I want custom templates to be about presentation, not about meeting legal requirements. The advantage of this approach is that you are still free to use different template from the Internet which knows nothing about Indian GST requirements and still have everything in place.