This is general information, not tax advice. Rates, thresholds and due dates are set by the government and change; your CA should confirm what applies to your business.
1. Issue the right document
- Tax invoice when you are registered under GST and charge GST.
- Bill of supply when you are not registered, or the supply is exempt.
- Credit note to correct or cancel an issued invoice — do not edit or delete invoices.
- Payment receipt for each instalment, so customers have a record even before the final invoice.
2. Keep invoice numbers in an unbroken sequence
Invoice numbers should run in a continuous series for each financial year, and the number is limited to 16 characters. Gaps and duplicates are the first thing an auditor notices. Avoid deleting drafts that already consumed a number.
3. Get the place of supply right
Whether you charge CGST + SGST or IGST depends on the place of supply compared with your own state. For services to a registered customer it generally follows the recipient’s location; for unregistered customers rules fall back to the recipient’s address, and then to yours. A wrong split changes which tax head the money goes to — worth checking every month.
4. Collect TCS where it applies
Tax collected at source on overseas tour packages is collected when you receive money from the customer, not when you issue the invoice. That means TCS follows your instalments. Keep a note of each customer’s PAN, because the rate can differ when it is missing, and track what you collected and deposited each month. The deposit is due by the 7th of the following month, and a quarterly TCS return is filed from the details. Ask your CA which rate and base apply to your packages today.
5. File on time
For a monthly filer, GSTR-1 (outward supplies) is generally due on the 11th and GSTR-3B (summary and tax payment) on the 20th of the following month. Put both in your calendar and give your CA the data a few days earlier.
6. Reconcile before you send anything
- Outward tax in GSTR-3B should match GSTR-1.
- Credit notes should reduce the right month’s liability.
- Input tax credit depends on your GST scheme for tour operator services — your CA should confirm what is claimable.
7. What to hand your CA
- GSTR-1 data and an HSN summary
- A sales register (invoices and credit notes, with tax split)
- Your ITC figures from supplier invoices
- The TCS collected and deposited, by customer
Common mistakes
- Editing an invoice instead of issuing a credit note.
- Charging tax on a bill of supply or the reverse.
- Forgetting that TCS follows receipts, not invoices.
- Starting the return on the 19th.
How TripSarthi helps
TripSarthi issues invoices and credit notes with gap-free numbering, splits tax by place of supply, tracks TCS against received payments, and exports GSTR-1, GSTR-3B and HSN data with a filing tracker and reminders. See GST billing for travel agents. Always have your CA review the first month’s files.
