Invoicing & Billing

glossaryTermPage.hero.prefix Tax Invoice?

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.

glossaryTermPage.sections.howItWorks

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).

glossaryTermPage.sections.example

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.

glossaryTermPage.sections.whyItMatters

1

glossaryTermPage.reasons.accuracy

2

glossaryTermPage.reasons.compliance

3

glossaryTermPage.reasons.decisions

4

glossaryTermPage.reasons.efficiency

glossaryTermPage.sections.faq

When is a tax invoice not required?

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).

What is the difference between a tax invoice and bill of supply?

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.

glossaryTermPage.sections.relatedTerms

Invoice

A commercial document issued by a seller to a buyer, detailing the products or services provided, quantities, prices, and payment terms.

Goods and Services Tax (GST)

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.

Input Tax Credit (ITC)

The GST paid on business purchases that can be claimed as a credit against the GST collected on sales, reducing the net tax payable.

HSN Code

Harmonized System of Nomenclature — an internationally standardized system of names and numbers to classify traded products, used in GST for goods classification.

glossaryTermPage.backToGlossary

glossaryTermPage.cta.title

glossaryTermPage.cta.subtitle