Difference between Tax Invoice and Retail Invoice

Q.1. How many types of invoices would be required to be issued under VAT?
A.1. There are two types of invoices that can be issued:

Tax invoice
Retail invoice

Q.2. What is a tax invoice and who will issue it?
A.2. Under VAT, tax invoice is a very important document. A registered dealer selling goods to another registered dealer shall issue tax invoice.

Q.3. What should a tax invoice contain?
A.3. A tax invoice should contain the complete details about selling as well as purchasing dealer. The invoice should also contain details about sale viz. description of goods, quantity, rate per unit and total value of goods. The Tax invoice may be in the following format:

TAX INVOICE
Book No. Invoice No. …………… Date
Name of selling dealer
Address
VAT TIN
CST TIN
Name of purchaser
Address
VAT TIN
CST TIN
Sr, No. Description of goods HSN Quantity Rate per unit Amount
Total
VAT @…….
Grand Total

(Signature of authorized person)

Q.4. What is a retail invoice?
A.4. A retail invoice is an invoice issued by registered dealers for all sales where a tax invoice is not authorized to be issued. It would not be necessary to issue retail invoice for the sale value is less than rupees one hundred.

Q.5. What should a retail invoice contain?
A.5. Retail invoice should contain the same details in tax invoice except TIN of purchaser. A retain invoice may also be in the format for tax invoice. But on the top of the invoice, instead of tax invoice, retail invoice should be printed.

Q.6. How many copies of the tax invoice/retail invoice should be prepared?
A.6. A tax invoice shall be prepared in triplicate. The ‘original’ and ‘duplicate’ copies shall be issued to the purchaser and the selling dealer shall retain ‘triplicate’ copy. Retail invoice may be prepared in duplicate.

Q.7. Which type of invoice will have to be issued for inter state sales?
A.7. Retail invoice shall be issued for interstate sales, interstate branch transfers and exports.

Q.8. Who is authorized to sign tax invoice?
A.8. A tax-invoice has to be signed by an authorized signatory. Sign of such a person or persons should be submitted to the department in Form 101C.

Q.9. Who should sign retain invoice?
A.9. A retail invoice can be signed by authorized person.

Source- http://www.commercialtax.gujarat.gov.in/vatwebsite/vat/VatFAQMain.jsp?viewPageNo=10

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7 Comments on “Difference between Tax Invoice and Retail Invoice”

  • nilesh wrote on 15 October, 2011, 10:28

    Can we take setoff against Retail invoice?

  • Tejas Vora wrote on 15 October, 2011, 14:08

    Dear Nilesh,

    We can not take set-off against Retail Invoices.

  • sohil wrote on 15 October, 2011, 21:29

    no no one can get credit on retail invoice and also can not pass on tax credit.

  • Sourabh Maini wrote on 3 November, 2011, 11:57

    Dear All

    It is very clear that tax invoice is to be issued only if the buyer is also registered dealer therefore if retail invoice is generated to registered dealer(buyer) then such reg. dealer should ask for VAT invoice only, (being a registered dealer) otherwise he shall not be able to claim the VAT. Retail invoice is for non registered dealers and for interstate sale/export.

    Regards
    CA Sourabh Maini

  • RAJESH KUMAR MORWAL wrote on 4 November, 2011, 16:03

    Nilesh,
    You are not elegible for setoff ag. Retail Invoice becouse you are not regestered under MVAT.

    Sourabh Maini – CA,
    Dealer should ask for TAX INVOICE only insteed of VAT INVOICE.

    Regards / R.K.MORWAL ( rajeshm@rptechindia.com)

  • Prakash wrote on 16 April, 2012, 13:58

    WE WANT TO SALE DISCARD IT ASSETS TO OUR EMPLOYEES. THEN WHAT TYPE OF INVOICE GENERATED IN THE SAP SYSTEM. IS IT RETAIL INVOICE OR TAX INVOICE  WHEREIN ONLY VAT @ 5% TAX PAYABLE. IF RETAIL INVOICE THEN SEND US THE FORMAT. SIR, IT IS VERY HELPFUL TO US.

    THANKS

  • udit khera wrote on 25 April, 2012, 11:43

    where to record the purchases on retail invoices in Dvat-30

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