A legal document issued by a registered GST dealer to a buyer showing the details of goods/services supplied, their value, and the applicable GST charged.
A Tax Invoice is mandatory under GST for all taxable supplies by registered businesses. It serves as the basis for the buyer to claim Input Tax Credit (ITC). Required fields include: supplier's name, address, GSTIN; buyer's name, address, GSTIN (for B2B); invoice number (unique, consecutive); date of issue; HSN/SAC codes; description, quantity, and value of goods/services; taxable value; GST rate and amount (CGST, SGST/UTGST, or IGST); and place of supply. A tax invoice must be issued within 30 days of supply (for services) or at the time of supply (for goods).
Tax Invoice #INV-2026-0567: From ABC Ltd (GSTIN: 27AABCA1234B1Z5) to XYZ Traders (GSTIN: 29AABCX5678C1Z3). 50 units × Widget-A @ ₹1,000 = ₹50,000. IGST 18% = ₹9,000. Total: ₹59,000. HSN: 8471. Place of Supply: Karnataka.
Ensures accurate financial reporting and record-keeping
Helps maintain regulatory and tax compliance
Enables better-informed business decisions
Improves operational efficiency and cash flow management
For exempt supplies, nil-rated supplies, supplies to unregistered persons below ₹200 per transaction (a bill of supply is issued instead), and composition scheme taxpayers (who issue bill of supply, not tax invoice).
A Tax Invoice includes GST breakup (CGST/SGST/IGST) and enables ITC claims. A Bill of Supply is issued when GST is not applicable (exempt goods, composition scheme). The buyer cannot claim ITC on a bill of supply.
A commercial document issued by a seller to a buyer, detailing the products or services provided, quantities, prices, and payment terms.
A comprehensive indirect tax levied on the supply of goods and services in India, replacing multiple earlier taxes like VAT, excise duty, and service tax.
The GST paid on business purchases that can be claimed as a credit against the GST collected on sales, reducing the net tax payable.
Harmonized System of Nomenclature — an internationally standardized system of names and numbers to classify traded products, used in GST for goods classification.
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