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GST Invoice- What is GST Invoice?

Updated on November 29, 2023 , 16147 views

Every registered dealer in the country is required to provide Goods and Services (GST) invoices under the GST regime. These invoices are also known as bills to clients.

What is GST Invoice?

GST iInvoice is a business document issued by a registered seller to the buyer of goods and services. This document contains the name of the parties involved in the transaction and the details of the goods and services supplied.

Under the GST regime, it is mandatory to issue invoice whenever there’s a supply of goods and services. As per the GST law, any registered person purchasing goods and services from an unregistered person should issue a payment voucher and GST invoice for such transaction.

Why is it Important to Issue GST Invoice?

Issuing a GST invoice is important for the following reasons:

1. Acts as proof of supply

GST Invoice acts as proof of supply of goods and services. It maintains transparency and the supplier can demand money based on the accounted details mentioned on the invoice.

2. Keeps a record of the supply time

GST invoice is issued at the time of supply and GST is charged at the time of the supply. This acts as an indicator of the time of supply.

3. A taxpayer can claim Income Tax Credit

The purchaser can claim income tax Credit (ITC) based on the GST invoice. The purchaser cannot claim ITC until the possession of the tax invoice or debit note.

Who Should Issue GST Invoice?

GST registered business need to issue GST-complaint invoices to clients on the sale of goods and services.

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Important Fields on a GST Invoice

GST Invoice must contain the following fields:

  • Invoice’s number and date
  • Name of the customer
  • Shipping and billing address of the customer
  • If the customer is a registered Taxpayer under GST, a customer and taxpayer’s GSTIN should be included
  • Supply place
  • HSN Code/SAC code
  • Details of the item like description, quantity, unit of measurement, the total value
  • Tax value and discounts
  • Amount of tax payable under CGST/SGST/IGST
  • If GST payable on reverse charge Basis
  • Seller’s signature

What is the Time Limit to Issue GST Invoice?

The time limit differs in case of normal supply and continuous supply.

1. Normal Supply

GST invoice is issued on or before the date of removal/delivery.

2. Continuous Supply

GST invoice should be issued on or before the date of the issue of account statement/payment.

Types of GST Invoices

Following are the types of GST Invoices:

1. Tax Invoice

A tax invoice is a commercial document. This is issued by the seller to the buyer to record the details of the parties involved in the transaction.

2. Advance Payment’s Receipt Voucher

Under the GST regime, anyone who receives payment in advance for the supply of goods and services should issue a Receipt voucher. This is a document that acts as a proof of receipt of an advance payment.

3. Advance Payment’s Refund Voucher

If the supplier doesn’t supply goods and service against the receipt voucher of advanced payment the supplier must issue the refund voucher for such a payment receipt.

4. Invoice in case of Continuous Supply of Goods and Services

If the goods and services are supplied to a buyer on a continuous basis this invoice is issued. It is issued before or at the time of such statement issued or received by the seller.

5. Issue of invoice in case of service termination

In cases where the supply of services is terminated before the actual supply, this invoice must be issued. The invoice is issued for the period for which the services were rendered. However, this accounts for the period before such termination.


Remember that you can digitally sign the invoice through Digital Signature Certificate. Make sure to check the details of your invoices thoroughly before issue.

All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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