What is a GST Invoice (Tax Invoice)?
A tax invoice is the mandatory legal document issued by a GST-registered supplier at the time of supply. It enables the buyer to claim Input Tax Credit (ITC).
A GST Invoice (formally called a Tax Invoice) is issued by a GST-registered supplier when goods are sold or services are rendered. It is the primary document required for a B2B buyer to claim Input Tax Credit (ITC) on their GST return.
Mandatory fields on a GST Tax Invoice: invoice number (consecutive, no gaps), invoice date, supplier's name, address, and GSTIN, buyer's name, address, and GSTIN (for B2B), HSN code for each item, quantity, unit, taxable value, GST rate, CGST/SGST or IGST amount, total value, and place of supply.
For intra-state B2B supply, the invoice shows CGST (Central GST) and SGST (State GST) split equally. For inter-state supply, it shows IGST (Integrated GST) instead. The total tax burden is the same — only the split changes.
Timing rules: for goods, a tax invoice must be issued at or before delivery. For services, within 30 days of supply. Missing these deadlines can result in GST notices and disallow the buyer's ITC claim.
On VyaparSethu, all completed Deals auto-generate a GST-compliant invoice with the correct HSN code, CGST/SGST breakdown, and both parties' GSTINs — reducing errors and ensuring buyer ITC eligibility.
Frequently Asked Questions
What is the difference between a GST invoice and a regular invoice?
A GST invoice (Tax Invoice) includes mandatory GST fields: GSTIN, HSN code, GST rate breakdown, and place of supply. A regular invoice lacks these and cannot be used to claim ITC.
Can I claim ITC on a GST invoice from an unregistered supplier?
No. ITC can only be claimed on invoices from GST-registered suppliers. Always verify the supplier's GSTIN on the GST portal before payment.
What is the time limit to issue a GST invoice for goods?
At or before delivery of goods. For movement of goods, an invoice must be raised before or at the time of removal from the supplier's premises.
Can a GST invoice be revised or cancelled?
A tax invoice cannot be deleted. To correct it, issue a credit note (if reducing value) or a debit note (if increasing value). Both must be reported in GSTR-1.
Related Terms
What is GST?
Goods and Services Tax — India's unified indirect tax that replaced excise duty, VAT, and service tax in July 2017. Applies to all B2B transactions above ₹40 lakh turnover.
What is HSN Code?
Harmonised System of Nomenclature — a 6–8 digit international product classification code used in GST invoices to determine the correct tax rate.
What is a Pro Forma Invoice?
A preliminary invoice sent before goods are dispatched. It confirms price, quantity, and terms — used to get buyer approval and arrange advance payment or LC.
What is a Purchase Order (PO)?
A Purchase Order is a legally binding commercial document a buyer issues to a supplier confirming the agreed product, quantity, price, delivery date, and payment terms.
Put this knowledge to work
Post a Requirement — verified suppliers quote with proper GST invoices, HSN codes, and Protected Payment on every deal.