Room Mitra: Customer Invoicing & GST Filing Process

Owner: Finance / Founders
Entity: Gubbachi Labs Private Limited
GSTIN: 29AAMCG6791K1ZP
Applicable to: Room Mitra customer invoices

1. Purpose

This document defines the process to follow when billing customers, receiving payment, issuing GST invoices, and reporting the transaction in GSTR-1 and GSTR-3B.

The goal is to ensure that:

• Customers receive the correct invoice.

• TDS deductions are tracked correctly.

• GST invoices are reported on time.

• Customers can claim their Input Tax Credit (ITC).

• GST collected/payable is remitted correctly.

• Outstanding GST payments from customers are followed up.

Important: The timing of a GST tax invoice is governed by GST time-of-supply/invoicing rules and is not always determined solely by when the customer pays. For services, a tax invoice generally must be issued within the prescribed period after supply. Confirm unusual cases with the CA.

2. Standard Billing Workflow

Step 1: Send the customer a Pro Forma Invoice

Before payment, issue a Pro Forma Invoice showing:

Subtotal + applicable GST = Total amount payable

Example:

Component   Amount

Subscription / Service Fee ₹75,000

CGST @ 9% ₹6,750

SGST @ 9% ₹6,750

Total ₹88,500

The document should be clearly labelled PRO FORMA INVOICE and should not be confused with the final GST tax invoice.

Step 2: Track the customer's payment

The customer may pay immediately or at a later date.

When payment arrives, reconcile the amount received against:

Subtotal + GST - TDS = Expected bank receipt

For example, if 10% TDS is applicable on the ₹75,000 service fee:

₹75,000 + ₹13,500 GST - ₹7,500 TDS = ₹81,000 expected bank receipt

If only ₹67,500 is received, that could represent:

₹75,000 - ₹7,500 TDS = ₹67,500

In such a situation, check whether the customer has withheld the ₹13,500 GST component pending the invoice appearing in their GST records.

Do not assume a deduction is TDS without obtaining the customer's payment advice/TDS records.

Step 3: Issue the GST Tax Invoice

Issue the final GST Tax Invoice when required under the applicable GST invoicing/time-of-supply rules.

The invoice should contain, among other required particulars:

• GST tax invoice number

• Invoice date

• Customer legal name

• Customer GSTIN for B2B transactions

• Description of service

• SAC/HSN

• Taxable value

• GST rate

• CGST + SGST or IGST, as applicable

• Total invoice value

Important: Do not use the pro forma invoice itself as the GST tax invoice. Maintain a clear tax-invoice numbering sequence.

3. Report the Invoice in GSTR-1

The GST tax invoice must be reported in the appropriate GSTR-1.

For a normal monthly filer, GSTR-1 is generally due on the 11th of the following month.

For example:

August GST invoice → August GSTR-1 → normally filed by 11 September

For a B2B customer, enter the invoice under the appropriate B2B outward supplies section using the customer's GSTIN.

Before filing, reconcile:

Total taxable value in GSTR-1 = taxable value of GST invoices

and

GST in GSTR-1 = GST charged on those invoices

Also complete the applicable HSN/SAC summary and document details.

4. Customer's Input Tax Credit

Once the invoice has been correctly furnished through the GST return process, it can become available to the customer through their GST records/GSTR-2B, subject to GST system rules and the applicable cut-off.

This is important because many corporate customers may not release the GST portion of a payment until they can see the corresponding invoice in their GST system.

After filing GSTR-1, send the customer confirmation if they are waiting for the invoice to appear.

5. Follow Up on Withheld GST

If the customer originally paid only:

Subtotal - TDS and withheld the GST portion, follow up after the invoice has been reported.

Example:

Invoice total: ₹88,500

Customer initially pays:

₹75,000 subtotal - ₹7,500 TDS = ₹67,500

Outstanding GST payment:

₹13,500

Once the invoice is visible to the customer for ITC purposes, request payment of the outstanding ₹13,500.

The total economic settlement would then be:

₹67,500 received + ₹13,500 GST received + ₹7,500 TDS credit = ₹88,500 invoice value.

6. File GSTR-3B and Pay GST

For a normal monthly filer, GSTR-3B is generally due on the 20th of the following month.

Example:

August transactions → August GSTR-3B → normally due 20 September

Reconcile GSTR-3B against GSTR-1 before filing.

The GST liability must be discharged through GSTR-3B using the available electronic credit/cash ledgers as permitted under GST rules.

Critical rule

The company's obligation to pay GST is not necessarily dependent on whether the customer has paid the GST amount to Room Mitra.

Therefore, ideally, collect the GST component from the customer before the GSTR-3B payment deadline.

But if the customer hasn't paid Room Mitra by then and GST is nevertheless legally due, Room Mitra may still have to discharge the liability.

7. If the Customer Does Not Pay

Follow up with the customer for any outstanding invoice amount, including GST.

Do not automatically issue a GST credit note merely because the customer has failed to pay the GST component.

A GST credit note that reduces output tax liability should only be issued when the circumstances legally permit it, such as an appropriate reduction/cancellation of the underlying taxable value or other circumstances permitted under GST law.

If a customer refuses to pay GST or the invoice is being cancelled/reduced, check with the CA before issuing a GST credit note or reducing GST liability.

8. Monthly Finance Checklist

For every month:

1. Reconcile all pro forma invoices, GST invoices and bank receipts.

2. Identify TDS deducted by each customer.

3. Identify customers who have withheld the GST component.

4. Verify all GST invoices are included in the appropriate GSTR-1.

5. Reconcile taxable value and GST totals before filing GSTR-1.

6. Follow up with customers for withheld GST after invoice reporting.

7. Reconcile GSTR-1 against GSTR-3B.

8. Ensure sufficient funds/eligible ITC are available to discharge GST liability.

9. File GSTR-3B and pay applicable GST by the due date.

10. Track TDS certificates/Form 16A and outstanding customer balances.

Simple rule to remember

Pro Forma → Payment / Time of Supply → GST Invoice → GSTR-1 → Customer ITC → Collect Outstanding GST → GSTR-3B & GST Payment

Never use "customer hasn't paid us yet" by itself as a reason to omit an otherwise reportable GST invoice, postpone GST indefinitely, or issue a GST credit note.

For the current July/August situation, the August GSTR-1 draft contains three B2B invoices totalling ₹2,25,000 taxable value, ₹20,250 CGST and ₹20,250 SGST, which is the reconciliation benchmark for that return.