Chapter 7

CHAPTER VII: TAX INVOICE, CREDIT AND DEBIT NOTES

Goods: A registered person must issue a tax invoice before or at the time of:
- Removal of goods (if involves movement)
- Delivery or making goods available (in other cases)
Services: Tax invoice must be issued before or after provision of service, within a prescribed period.
Revised invoices: May be issued within 1 month of registration certificate issuance for supplies made before registration.
Exempt / small-value supplies:
- Tax invoices not required if value < ₹200 (conditions apply)
- Bill of supply issued for exempted goods/services or under composition scheme (Section 10)
Advance payments:
- Receipt voucher issued upon receiving advance payment
- Refund voucher may be issued if supply is not made
Reverse charge / unregistered supplier:
- Registered person paying tax under RCM must issue invoice or payment voucher.
Continuous supply:
- Goods: Invoice issued before each statement/payment
- Services: Invoice issued based on contract, receipt of payment, or event completion
Goods sent on approval / sale or return: Invoice issued before supply or within 6 months of removal, whichever is earlier

Explanation: Tax invoice includes revised invoices.

Government may notify categories of registered persons required to offer electronic payment options to recipients.

Tax liability must be prominently indicated in invoices, assessment records, and other documents forming part of the price.

Credit Notes: Issued if:
- Taxable value or tax charged exceeds actual
- Goods returned
- Goods/services found deficient
Debit Notes: Issued if taxable value or tax charged is less than payable.
Declaration: Credit/debit notes must be declared in monthly return; adjustment of tax liability follows prescribed manner.
Supplementary invoice is considered a debit note.