Tax invoice
The bill a registered supplier issues for goods or services, carrying the details GST requires, which lets the buyer claim credit.
What it means in business
A tax invoice shows the supplier's name, address and GSTIN, a unique invoice number and date, the buyer's details where required, a description of the goods with the HSN code, quantity, taxable value, the rate and amount of each tax, and the place of supply. The law sets what must be on it and when it must be issued.
Example
A fabricator invoices a customer for a batch of brackets. The invoice shows the HSN code, the taxable value, CGST and SGST because the sale is within the state, and the customer's GSTIN so it can claim credit. This is an illustration of normal business use rather than a quoted case study.
How to use it correctly
Number invoices in an unbroken series, issue them within the time the law allows, and check the buyer's GSTIN and the place of supply before sending. Where e-invoicing applies, generate the IRN before the invoice is valid.
Common confusion
A tax invoice is not the same as a proforma invoice, a quotation or a delivery challan. Only a proper tax invoice from a registered supplier supports a buyer's credit. A business under the composition scheme issues a different document, a bill of supply.
Related glossary terms
Sources and further reading
Written on 24 October 2026 for lamp. Confirm the current rules with the official source or an adviser before relying on it.