A Tax Invoice is a document issued by a seller registered under GST to the buyer on sale of taxable goods or services.
A Tax Invoice is important because:
Tax Invoice should be issued in the following cases:
In the case of supply of goods, the seller should issue three copies of an invoice:
In the case of supply of services, the seller should issue two copies of an invoice:
| Type of Supply ||Time limit|
|Supply of Goods||1. If the supply involves the movement of goods – before or at the time of removal of goods |
2. If the supply does not involve the movement of goods – before or at the time of delivery of goods to the recipient
3. In case of continuous supply of goods – before or at the time each statement of account is issued or each successive payment is received
|Supply of Service||1. In the normal case: within 30 days from the date of supply of service|
2. In case of continuous supply of service: within 30 days from the date when each event specified in the contract for payment
3. Where the service provider is a bank or any financial institution: within 45 days of supply of service
Yes, a Tax Invoice is compulsory for the supplier of goods and services. It is issued as evidence for transaction and it also acts as proof to claim input credit.
Where both the invoices certify the sale of goods and services, a Tax Invoice will also highlight the details of the Goods and Service Tax (GST) associated with that transaction.
If a supplier is registered under GST, it becomes mandatory for him to shoe GST in Tax Invoice. However, if a supplier is not registered with the GST, he would have to isse a ‘Regular Invoice’.