Section 31 of CGST Act - Tax Invoice
Section 31 of the Central Goods and Services Tax Act, 2017 governs when a registered person must issue a tax invoice and also deals with revised invoices, bills of supply, receipt vouchers, refund vouchers, reverse charge invoices, payment vouchers, continuous supplies and goods sent on approval.
What is a tax invoice under Section 31?
A tax invoice is the principal GST document issued for a taxable supply. It records the supply and the tax charged and must contain the particulars prescribed under the CGST Rules. Rule 46 specifies the principal particulars of a tax invoice, including supplier and recipient details where applicable, invoice number and date, HSN or service accounting code, description, value, taxable value and tax details.
Section 31 - statutory requirements explained
Section 31(1): Taxable supply of goods
A registered person supplying taxable goods must issue the tax invoice before or at the time of removal of goods where the supply involves movement, or before or at delivery or making the goods available to the recipient in any other case.
The invoice must show the description, quantity and value of goods, tax charged and other prescribed particulars. The Government may notify categories of goods or supplies for which the invoice may be issued within a prescribed time and manner.
Section 31(2): Taxable supply of services
A registered person supplying taxable services must issue a tax invoice before or after provision of the service, but within the prescribed period. Under Rule 47, the general period is 30 days from the date of supply of service. For an insurer, banking company, financial institution including an NBFC, the prescribed period is generally 45 days.
The Government may notify categories of services for which another document is treated as a tax invoice or for which a tax invoice need not be issued, subject to notified conditions.
Section 31(3): Special invoice documents
- Revised invoice: A newly registered person may, within one month from issue of the registration certificate and in the prescribed manner, issue revised invoices for the period from the effective date of registration to the date of the certificate.
- Small-value supplies: Subject to prescribed conditions, a tax invoice need not be issued where the value of goods or services or both is less than Rs. 200. The applicable rules provide for a consolidated invoice in eligible cases.
- Bill of supply: A person supplying exempt goods or services or both, or paying tax under section 10 (composition levy), issues a bill of supply instead of a tax invoice, subject to the Act and Rules.
- Receipt voucher: On receipt of advance for a supply, the registered person must issue a receipt voucher or other prescribed document evidencing receipt.
- Refund voucher: Where an advance was received and a receipt voucher issued but the supply does not take place and no tax invoice is issued, a refund voucher may be issued.
- Reverse charge self-invoice: A registered recipient liable to pay tax under section 9(3) or 9(4) must, within the prescribed period, issue an invoice for goods or services or both received from a supplier who is not registered on the date of receipt. Rule 47A prescribes 30 days from receipt.
- Payment voucher: A registered person liable under section 9(3) or 9(4) must issue a payment voucher when making payment to the supplier.
Section 31(4): Continuous supply of goods
Where successive statements of account or successive payments are involved, the invoice must be issued before or at the time each statement is issued or each payment is received, as applicable.
Section 31(5): Continuous supply of services
- If the due date of payment is ascertainable from the contract, the invoice is issued on or before that due date.
- If the due date is not ascertainable, the invoice is issued before or at the time the supplier receives payment.
- If payment is linked to completion of an event, the invoice is issued on or before completion of that event.
Section 31(6): Service contract ending before completion
If a supply of services ceases before completion, the invoice must be issued when the supply ceases and only to the extent of the supply made before cessation.
Section 31(7): Goods sent on approval
Where goods are sent or taken on approval for sale or return before the supply takes place, the invoice must be issued before or at the time of supply or within six months from the date of removal, whichever is earlier.
Tax invoice time limits at a glance
| Supply / document | General timing |
|---|---|
| Taxable goods involving movement | Before or at removal for supply. |
| Taxable goods without movement | Before or at delivery or making available. |
| Taxable services | Generally within 30 days from date of supply under Rule 47. |
| Specified financial-sector service suppliers | Generally within 45 days under Rule 47. |
| Reverse charge self-invoice under section 31(3)(f) | Within 30 days from receipt under Rule 47A. |
| Goods on approval | Before or at supply or six months from removal, whichever is earlier. |
Rule 46 - particulars of a GST tax invoice
Rule 46 of the CGST Rules prescribes the particulars to be contained in a tax invoice. Depending on the nature of the transaction, these include the supplier's name, address and GSTIN; a unique serial number for the financial year; date; recipient details; HSN or accounting code; description; quantity for goods; total and taxable value; rate and amount of tax; place of supply for inter-State supplies; reverse charge indication where applicable; and other prescribed particulars.
E-invoicing and Section 31
E-invoicing does not replace the underlying requirement to issue an invoice under section 31. For notified taxpayers and supplies, prescribed invoice details are reported to an Invoice Registration Portal and an Invoice Reference Number and signed QR code are generated. The e-invoicing mandate currently extends to notified taxpayers whose aggregate annual turnover exceeded Rs. 5 crore in any preceding financial year from 2017-18 onwards, subject to the applicable exemptions and conditions.
Related CGST Act provisions
Section 31 should be read with the relevant provisions on time of supply, reverse charge, composition levy, registration, input tax credit and credit/debit notes. For invoice compliance, Rules 46 to 55 of the CGST Rules are particularly relevant.
Chapter VII - Tax Invoice, Credit and Debit Notes
Useful internal GST links
This page is a general legal and tax information resource. For a transaction-specific position, check the current Act, Rules, notifications, circulars and applicable facts.