Lekha

Guides

Guides to GST, invoicing, counter billing and bookkeeping

Plain-English guides for people who run a business, not an accounting department. GST and invoicing, counter billing, keeping the books, and the MSME rules that decide when you must be paid.

GST

  • What is a GST invoice?

    A GST invoice, or tax invoice, is the document a registered seller issues on a taxable supply. Here is what it is, what it must contain, and when one is required.

  • GST invoice format and mandatory fields

    A GST tax invoice has a fixed set of mandatory fields. Here is the standard GST invoice format — supplier, buyer, HSN, tax split, and place of supply — field by field.

  • CGST, SGST and IGST, explained

    GST is charged as CGST plus SGST on intra-state supplies and as IGST on inter-state supplies. Here is how the place of supply decides which one applies.

  • What is an e-way bill?

    An e-way bill is an electronic document required to move goods worth more than ₹50,000 under GST. Here is when it is needed, its two parts, and how it links to your invoice.

  • HSN codes on invoices

    HSN codes classify goods under GST, and a tax invoice must carry the right one. Here is what an HSN code is, how many digits you need, and how SAC works for services.

  • Credit notes and debit notes under GST

    A credit note reduces the value of an issued invoice; a debit note increases it. Here is when to raise each under GST, and how they adjust tax already charged.

  • Delivery challan, explained

    A delivery challan moves goods without a tax invoice — for job work, approvals, or transfers. Here is what it is, when it is used instead of an invoice, and what it must show.

  • Input tax credit under GST, explained

    Input tax credit lets a business set the GST it paid on purchases against the GST it owes on sales. Here is what ITC is, the basic conditions, and why matching matters.

  • Reverse charge mechanism under GST

    Under reverse charge, the buyer pays GST to the government instead of the supplier. Here is when RCM applies, how it differs from the normal charge, and what it means for records.

  • The GST composition scheme, explained

    The composition scheme lets eligible small businesses pay GST at a flat turnover-based rate with lighter filing. Here is who it suits, the trade-offs, and how billing changes.

  • GST registration, explained

    GST registration makes a business a registered taxpayer with a GSTIN. Here is who has to register, who may register voluntarily, and what registration lets a business do.

  • The GSTIN structure, explained

    A GSTIN is the 15-character GST identification number of a registered business. Here is what each part stands for — the state code, the PAN, and the trailing characters.

  • Place of supply for goods

    The place of supply for goods decides whether a sale is intra-state or inter-state, and therefore the tax. Here is how it is generally worked out and why it drives the tax split.

  • Place of supply for services

    For services, the place of supply generally follows the recipient's location, with many exceptions. Here is the default rule, why exceptions exist, and how it sets the tax.

  • Time of supply under GST

    The time of supply is the point GST becomes payable on a transaction. Here is how it is generally fixed for goods and services and why it decides which return the tax falls in.

  • E-invoicing and the IRN, explained

    E-invoicing reports a tax invoice to a government portal, which returns an IRN and a QR code. Here is what e-invoicing is, who it applies to, and how the IRN fits an invoice.

  • GSTR-1: an overview

    GSTR-1 is the return where a business reports its outward supplies — its sales — under GST. Here is what it covers, how it links to the buyer's credit, and why accuracy matters.

  • GSTR-3B: an overview

    GSTR-3B is the summary GST return where a business declares its tax and pays it. Here is what it covers, how it differs from GSTR-1, and why the two need to agree.

  • GSTR-9 annual return: an overview

    GSTR-9 is the annual GST return that consolidates a financial year's supplies and tax. Here is what it pulls together, who files it, and why year-round records make it easier.

  • GST on advance payments

    Receiving money before a supply can bring GST into play through the time-of-supply rules. Here is how advances are treated and the receipt voucher a supplier issues.

  • Bill of supply, explained

    A bill of supply is issued where no GST is charged — for exempt supplies and by composition dealers. Here is what it is, how it differs from a tax invoice, and when to use it.

  • LUT and export without payment of tax

    A Letter of Undertaking lets an exporter supply zero-rated goods or services without paying IGST upfront. Here is what an LUT is, the two export routes, and how records fit.

  • SEZ supplies under GST

    Supplies to a Special Economic Zone are treated as zero-rated under GST, like exports. Here is what that means, the two routes, and why documentation matters for these supplies.

  • GST late fee and interest, explained

    Filing a GST return late or paying tax late can attract a late fee and interest. Here is the difference between the two, why they add up, and how to avoid them in concept.

  • Nil-rated, exempt and zero-rated supplies

    Nil-rated, exempt, and zero-rated sound similar but mean different things under GST — especially for input tax credit. Here is what separates the three and why it matters.

  • Tax invoice time limits under GST

    GST sets time limits for issuing a tax invoice — different for goods and services. Here is the general timing, why it matters for the time of supply, and how records help.

  • Self-invoicing under reverse charge

    When a buyer pays GST under reverse charge on a supply from an unregistered person, it raises a self-invoice. Here is what self-invoicing is, when it applies, and the payment voucher.

  • GST reconciliation, explained

    GST reconciliation means matching your own records to what suppliers reported and what your returns show. Here is what gets matched, why gaps appear, and how clean records help.

  • Composite and mixed supply under GST

    When a sale bundles items together, GST asks whether it is a composite or a mixed supply — because that decides the rate. Here is the difference and why the bundling test matters.

  • Input tax credit reversal, explained

    Sometimes input tax credit already claimed has to be reversed. Here is what ITC reversal is, the common situations that trigger it, and why records matter.

  • Blocked credits under GST, explained

    GST allows input tax credit on most business purchases, but blocks it on some. Here is what blocked credits are and the broad categories to watch for.

  • The GST refund process, explained

    A business can claim a GST refund in several situations, from exports to an inverted duty structure. Here is what a refund is and how the process broadly works.

  • GST audit and the records to keep

    GST rests on a business keeping proper records. Here is what a GST audit looks at and the core records a business should keep to stand behind its returns.

  • GST notices, an overview

    A GST notice is the department's way of asking a business to explain or correct something. Here is an overview of the common types and why records matter.

  • GSTR-2B, explained

    GSTR-2B is the auto-drafted statement that tells a business the input tax credit available to it for a period. Here is what it is and why it matters.

  • The nil GST return, explained

    Even with no sales or purchases in a period, a registered business generally still has to file its GST returns. Here is what a nil return is and why it matters.

Invoicing

  • Types of business invoices

    Businesses issue several kinds of invoices — tax invoice, bill of supply, proforma invoice, and more. Here is what each one is and when to use it.

  • Proforma invoice, explained

    A proforma invoice is a quotation in invoice form, sent before a sale is confirmed. Here is what it is, what it is not, and how it differs from a tax invoice.

  • Purchase order to invoice flow

    The order-to-invoice flow runs from purchase order to challan, delivery, and tax invoice. Here is each step and why tracking the whole chain keeps receivables clean.

  • Job work and the job-work challan

    Job work means sending goods to another party for processing. Here is how job work is documented under GST with a delivery challan, and how the goods and records are tracked.

  • Invoice numbering rules

    GST expects invoice numbers to run in a consecutive, financial-year-unique series. Here is what the numbering rules require, why gaps cause trouble, and how to keep them clean.

  • Recurring invoices, explained

    A recurring invoice bills the same customer the same way on a regular cycle. Here is what recurring invoicing is, where it fits, and how it keeps a steady receivable on track.

  • Quotation vs invoice

    A quotation offers a price before a sale; an invoice demands payment after it. Here is the difference between the two, where each fits in the sale, and why they should not be confused.

  • Invoice vs receipt

    An invoice asks for payment; a receipt confirms it was made. Here is the difference between the two, what each proves, and why a business needs both on record.

  • The advance receipt voucher

    When a supplier takes money before a supply, it issues a receipt voucher. Here is what an advance receipt voucher records, how it links to the later invoice, and the refund voucher.

  • The payment voucher, explained

    A payment voucher is issued when a buyer pays a supplier under reverse charge. Here is what a payment voucher is, how it differs from a receipt voucher, and when it is used.

  • The revised invoice, explained

    A revised invoice covers supplies made in the gap between a registration's effective date and the certificate. Here is what it is, why it exists, and how it differs from a credit note.

  • The consolidated invoice, explained

    A consolidated invoice groups small unregistered-buyer sales into one document. Here is what it is, when GST allows it, and how it keeps a busy counter's paperwork manageable.

  • Retention money in invoicing

    Retention money is a portion of an invoice a buyer holds back until conditions are met. Here is what retention is, why buyers hold it, and how it changes a receivable's picture.

  • How discounts appear on an invoice

    Discounts change an invoice's taxable value, but the treatment depends on whether the discount is given before or after the supply. Here is the general picture and why it matters.

  • The purchase order, explained

    A purchase order is the buyer's formal request to buy, sent before the supply. Here is what a PO records, how it differs from an invoice, and why it anchors the order-to-payment chain.

  • Invoice payment terms, explained

    Payment terms tell a buyer when an invoice is due. Here is what common terms like net-30 mean, why clear terms speed collection, and how they set the clock on a receivable.

  • The commercial invoice for exports

    A commercial invoice is the core billing document in an export shipment. Here is what it records, how it relates to the GST export invoice, and why its details must be consistent.

  • Cancelling an invoice vs issuing a credit note

    When a sale changes or falls through, you either cancel the invoice or issue a credit note. Here is the difference and when each one is the right move.

  • Rounding on a tax invoice

    The total on a tax invoice is usually rounded to the nearest rupee. Here is how rounding works on a GST invoice and why it is shown as its own line.

Counter billing

  • What is counter billing?

    Counter billing is issuing a bill at the point of sale, over the counter. Here is what it means, how it differs from full invoicing, and what a good counter bill records.

  • Counter billing vs GST invoicing

    Counter billing is fast point-of-sale billing; GST invoicing is the formal order-based tax invoice. Here is how they differ and when each one fits your sales.

  • The bill book for small businesses

    A bill book is where a small business records the bills it issues. Here is what a bill book is, why the numbering matters, and how a digital bill book keeps records clean.

  • What is a POS system?

    A POS system is the setup a business uses to ring up a sale at the point of purchase. Here is what a POS does, what it typically includes, and how it ties a sale into the books.

  • B2C vs B2B billing

    Billing a consumer differs from billing a business — chiefly in whether the buyer needs a tax invoice for input tax credit. Here is how B2C and B2B billing differ and why it matters.

  • Retail vs wholesale billing

    Retail billing serves end customers in small quantities; wholesale billing serves resellers in bulk. Here is how the two differ in pace, documentation, and what the buyer needs.

  • Barcode billing basics

    Barcode billing rings up an item by scanning its code instead of typing it. Here is how barcode billing works, what it needs to be set up, and where it speeds up a busy counter.

  • Thermal-printer receipts, explained

    Thermal printers produce the small receipts common at retail counters, using heat instead of ink. Here is how they work, their trade-offs, and why the recorded sale matters more.

  • GST on a retail counter sale

    A retail counter sale still carries GST when the business is registered and the sale is taxable. Here is how GST applies at the counter, what the bill should show, and reporting basics.

  • Cash memo vs tax invoice

    A cash memo is a simple bill for a cash sale; a tax invoice is the formal GST document. Here is how they differ, when each is used, and why the distinction matters for the buyer.

  • The cash memo, explained

    A cash memo is a simple bill handed over for a cash sale. Here is what a cash memo records, where it fits for a small business, and why the sale still needs to reach the books.

  • Discounts and offers at the counter

    Counter sales often carry a discount or an offer. Here is how to handle discounts on a counter bill cleanly so the takings and the records still tie out.

  • Returns and exchange at the counter

    Counter sales come back as returns and exchanges. Here is how to record them cleanly so stock, takings, and the ledger all stay accurate.

Bookkeeping

  • Receivables vs payables

    Receivables are what customers owe you; payables are what you owe suppliers. Here is the difference, why tracking both matters, and how net position ties them together.

  • What is a two-sided ledger?

    A two-sided ledger records both what you owe and what you are owed in one place. Here is what it means, how it differs from a single register, and why it keeps cash visible.

  • How to track supplier payments

    Tracking supplier payments means capturing each bill, its due date, and what is paid. Here is a practical way to keep payables current so nothing is paid twice or missed.

  • Sales register and purchase register

    A sales register lists what you sold; a purchase register lists what you bought. Here is what each records, why they matter for GST, and how a ledger keeps both in step.

  • The cash book, explained

    A cash book records money coming in and going out. Here is what a cash book is, how it differs from a bank statement, and why keeping it current keeps a business honest with itself.

  • The day book, explained

    A day book records transactions in the order they happen, day by day. Here is what a day book is, how it feeds the ledger, and why a chronological record catches what memory misses.

  • Journal vs ledger

    A journal records transactions as they happen; a ledger sorts them by account. Here is how the two differ, how one feeds the other, and why both are needed to see the whole picture.

  • Trial balance basics

    A trial balance lists every account's balance to check the books add up. Here is what a trial balance is, what a match does and does not prove, and where it fits in closing the books.

  • Double-entry bookkeeping basics

    Double-entry records every transaction twice — a debit and a matching credit. Here is the basic idea, why every entry has two sides, and how it keeps the books self-checking.

  • Accrual vs cash accounting

    Cash accounting records money when it moves; accrual records it when it is earned or owed. Here is the difference, what each shows, and why it changes how a business reads itself.

  • Bank reconciliation, explained

    Bank reconciliation matches a business's own cash records against the bank statement. Here is what it is, why the two differ, and how regular reconciling catches errors early.

  • Petty cash, explained

    Petty cash is a small fund for minor day-to-day expenses. Here is what petty cash is, how the imprest system keeps it controlled, and why even small amounts need recording.

  • Aging analysis, explained

    Aging analysis groups outstanding amounts by how long they have been due. Here is what an aging report shows, how the buckets work, and why it tells you who to chase first.

  • Days sales outstanding (DSO), explained

    Days sales outstanding measures how long, on average, a business takes to collect its receivables. Here is what DSO tells you, what a rising number signals, and how to read it.

  • Working capital basics

    Working capital is the money a business has tied up in running day to day. Here is what working capital is, why it can be tight even when profits are good, and how to keep it visible.

  • Outstanding vs advance

    An outstanding is money still owed on a supply; an advance is money paid before one. Here is how the two differ, how they can offset, and why a party's true balance needs both.

  • Opening and closing balance

    An opening balance starts a period; a closing balance ends it and carries forward. Here is what each means, how one becomes the next, and why the carry-forward has to be right.

  • The chart of accounts, explained

    A chart of accounts is the organised list of every account a business records into. Here is what it is, how it is grouped, and why it keeps the books consistent.

  • TDS basics for a small business

    TDS means deducting tax at source on certain payments and depositing it with the government. Here is a plain overview of what it is and why records matter.

  • Advance tax basics

    Advance tax means paying income tax in installments through the year rather than all at once. Here is a plain overview of who it applies to and why.

  • Break-even analysis basics

    Break-even is the level of sales at which a business exactly covers its costs. Here is what break-even means and how fixed and variable costs decide it.

  • Gross margin vs net margin

    Gross margin and net margin both measure profitability, but at different points. Here is what each one is and why a business should watch both.

  • Depreciation basics

    Depreciation spreads the cost of a long-lived asset across the years it is used. Here is what it is, the common methods, and why it matters to the books.

MSME

  • The MSME 45-day payment rule, explained

    How Section 15, Section 16, and Income-Tax Section 43B(h) set the 45-day deadline, the interest, and the tax cost of paying a small supplier late.

  • Udyam registration, explained

    Udyam registration is the government's MSME registration. Here is what it is, who can register, and why it matters for the 45-day payment rule and priority-sector lending.

  • MSME classification criteria

    MSMEs are classified as micro, small, or medium by investment and turnover. Here are the criteria and why the classification decides which protections apply.

  • MSME Form 1, explained

    MSME Form 1 is the half-yearly return companies file for amounts owed to micro and small suppliers beyond 45 days. Here is who files it, what it reports, and when.

  • The MSME Samadhaan portal, explained

    MSME Samadhaan is the government portal where a micro or small supplier can file a delayed-payment case against a buyer. Here is what it is, how a case flows, and where it leads.

  • TReDS, explained

    TReDS is an RBI-regulated platform where MSMEs can turn approved receivables into early cash through bill discounting. Here is what TReDS is, who is involved, and how it helps cash flow.

  • Udyam vs Udyog Aadhaar

    Udyam registration replaced the older Udyog Aadhaar for MSMEs. Here is how the two differ, what the shift changed, and why registering on the current system matters for protections.

  • Priority-sector lending and MSMEs

    Priority-sector lending directs a share of bank credit to sectors like MSMEs. Here is what it is, why it helps MSMEs access finance, and how it relates to MSME registration.

  • NIC code basics

    An NIC code identifies a business's economic activity and is used during Udyam registration. Here is what an NIC code is, why it is needed, and how to think about picking the right one.

  • MSME benefits, an overview

    MSME registration can unlock protections and support — from the delayed-payment machinery to better finance access. Here is an overview of the main benefits and their limits.

  • The appointed day, explained

    The appointed day is when a payment to a micro or small supplier becomes overdue and interest starts. Here is what it means, how it is fixed from acceptance, and why the date matters.

  • The MSE Facilitation Council, explained

    The Micro and Small Enterprise Facilitation Council settles delayed-payment disputes under the MSMED Act. Here is what the Council does, how a case reaches it, and what it can award.

  • The CGTMSE credit guarantee, explained

    CGTMSE backs loans to micro and small enterprises so they can borrow without collateral. Here is what the credit guarantee is and who it helps.

  • GeM registration for MSMEs

    GeM is the government's online marketplace for public procurement. Here is what registering on GeM opens up for an MSME and how it broadly works.

  • MSME loan basics

    MSMEs borrow for working capital and for growth. Here is a plain overview of the common types of MSME loan and what a lender wants to see.

Tools

Turn a due date and an overdue count into a rupee figure with the MSME delayed-payment interest calculator, or see how the ledger works on the features page.