Tax invoice, bill of supply and delivery challan: which document when

Key facts

• A tax invoice is issued by a registered person for a taxable supply. It is the document the buyer needs to claim ITC.
• A bill of supply is issued for exempt supplies, or by a composition dealer. It shows no GST.
• A delivery challan moves goods when there is no sale yet, such as job work, goods sent on approval, or goods sent for exhibition.
• Invoice numbers must be in one or more series, unique for the financial year, and up to 16 characters (letters, numbers, "-" and "/").

Which document when

What a tax invoice must show

• Supplier's name, address and GSTIN; invoice number and date.
• Buyer's name, address and GSTIN (or, for unregistered buyers, name, address and state when value is ₹50,000 or more).
• Place of supply (state name and code) when it differs from the supplier's state.
• HSN/SAC code (4 digits up to ₹5 crore turnover for B2B; 6 digits above ₹5 crore).
• Description, quantity, unit, value, discount, taxable value, rate and amount of CGST/SGST or IGST and cess.
• Whether tax is payable under reverse charge; signature or digital signature.
• For goods: original for buyer, duplicate for transporter, triplicate for supplier.

Common questions

Do I need an invoice for very small sales to consumers?

For sales below ₹200 to unregistered buyers who do not ask for an invoice, you may issue one consolidated invoice for the day.

Can I sell taxable and exempt items on one bill?

Yes. A single "invoice-cum-bill of supply" can be issued for a mix of taxable and exempt goods to an unregistered buyer.

Is an e-invoice a different document?

No. It is the same tax invoice, reported to the IRP to get an IRN and QR code, required once your turnover crossed ₹5 crore in any year.

Sources

• Central Goods and Services Tax Rules, 2017
• Central Goods and Services Tax Act, 2017 (as amended)
• Notification 78/2020-CT: HSN digits on invoices