What Is a GST Invoice?
A GST Invoice (or Tax Invoice) is a commercial instrument issued by a seller or service provider to a buyer. It is an essential document under the Goods and Services Tax (GST) regime in India. It indicates the details of the transaction, the value of the goods or services supplied, and the amount of GST charged (CGST, SGST, or IGST).
For the buyer, a valid GST tax invoice is the primary document required to claim Input Tax Credit (ITC).
When is a GST Invoice Needed?
- Supply of Goods: A tax invoice must be issued at or before the time of removal of goods for supply.
- Supply of Services: A tax invoice must be issued within 30 days from the date of the supply of service.
- Bank & Financial Institutions: Within 45 days of supply of services.
Tax Invoice vs. Bill of Supply
It is important to know which document to issue based on your business type:
| Feature | Tax Invoice | Bill of Supply |
|---|---|---|
| Issued By | Regular GST registered dealers | Composition dealers or for exempted goods |
| Taxes Charged | GST is charged explicitly on the invoice | No GST is charged to the customer |
| Input Tax Credit | Buyer can claim ITC | Buyer cannot claim ITC |
Key Fields on a GST Invoice
To be considered valid, a GST tax invoice must include specific mandatory fields as per Section 31 of the CGST Act:
- GSTIN: Both the supplier's and the recipient's (if registered) 15-digit Goods and Services Tax Identification Number.
- Invoice Number & Date: A unique consecutive serial number not exceeding 16 characters.
- HSN/SAC Code: Harmonized System of Nomenclature code for goods, or Services Accounting Code for services.
- Taxable Value & Discounts: The value on which tax is calculated.
- Tax Rate & Amount: Central GST (CGST) and State GST (SGST) for intra-state sales, or Integrated GST (IGST) for inter-state sales.
- Place of Supply: Crucial for determining if IGST or CGST/SGST applies.
- Signature: Digital or physical signature of the supplier.