Tax Invoice Requirements Under Section 31 of CGST Act & GST Rule 46

A tax invoice is a crucial document issued by a registered supplier under GST regulations. As per Rule 46 of the CGST and SGST Rules, it must include specific details to ensure transparency and compliance. Key elements include the supplier’s name, address, and GSTIN, a unique invoice number (up to 16 characters), the issue date, and recipient details (including GSTIN for registered buyers). If the recipient is unregistered and the supply value exceeds ₹50,000, the invoice must include the delivery address and state code. The invoice should also specify the HSN/SAC code, product/service description, quantity, taxable value, applicable tax rates (CGST, SGST, IGST, or Cess), and total tax amount. The place of supply is mandatory for interstate transactions, with penalties up to ₹25,000 for non-compliance. Additional requirements include the delivery address for bill-to-ship transactions, a reverse charge indicator if applicable, an authorized signatory’s signature or digital signature, and a QR code with an Invoice Reference Number (IRN) under Rule 48(4). Adhering to these provisions ensures compliance, avoids legal risks, and facilitates smooth business transactions.

CONTEXT OF TAX INVOICE
Understanding the Key Provisions of a Tax Invoice under CGST and SGST Rules
Rule 46 and Section 31 of the CGST Act

• A Tax Invoice is a legal document issued by a registered supplier under GST.
• Rule 46 of the CGST and SGST Rules lays down the key details that must be included in a Tax Invoice excluding these special cases (Input Service Distributor, Banks, FI, NBFC, GTA and passenger transportation service).
• These provisions are mandatory to maintain consistency and transparency in GST transactions
• Details are as follows:
• Name, Address, and GSTIN of Supplier
• Invoice Number: A unique, consecutive number (max 16 characters).
• Date of Issue: The date the invoice is issued.
• Recipient Details (registered): Name, Address, and GSTIN/UIN
• Recipient’s Details (Unregistered): Address of delivery, state, and its code if value of supply is ₹50,000 or more.

HSN/SAC Code and Product/Service Description

• Description of Goods/Services
• Quantity (for goods) or Unit of Measure (UQC) thereof
• Total Value of Supply inclusive of Tax Amount
• Taxable Value od supply of goods or services after considering any discounts or abatements.
• Rate of Tax: Central tax, state tax, integrated tax, or Cess.
• Amount of Tax Charged: Details of tax (Central, State, Integrated or cess)
• Place of Supply: Necessary for interstate trade, penalty for omission.

Penalty of up to ₹25,000 for failing to mention the place of supply (Circular No. 9/09/2019-GST dated 18-02-2019).

• Address of Delivery: In case of bill-to-ship transactions.
• Reverse Charge: Mention if tax is payable on reverse charge basis.
• Signature/Digital Signature: Authorized signatory, unless it’s an electronic bill of supply.
• Quick Response Code (QR) having embedded Invoice reference number (IRN) under Rule 48(4)

Conclusion

• The tax invoice is a critical document for GST compliance.
• Proper adherence to Rule 46 ensures smooth transactions and avoids legal complications.
• Businesses must stay updated on the latest GST provisions and ensure proper invoicing.