What does Section 31 say?

Section 31 of the CGST Act deals with the issuance of tax invoices, bills of supply, receipt vouchers, refund vouchers, and other related documents. It mandates that every registered person supplying taxable goods or services must issue a tax invoice containing prescribed particulars such as supplier details, GSTIN, invoice number, date, description of goods or services, taxable value, tax amount, and total invoice value.

For the supply of goods, the invoice is generally required to be issued before or at the time of removal of goods for delivery to the recipient. In cases where goods are not moved, the invoice should be issued at the time of delivery or when ownership is transferred. For services, the invoice must be issued within the prescribed period after the service has been provided.

The section also provides for the issuance of a revised invoice in cases where registration is granted from an earlier effective date. Businesses dealing exclusively in exempt goods or services, or taxpayers registered under the Composition Scheme, are required to issue a Bill of Supply instead of a Tax Invoice.

The objective of this section is to create a proper audit trail of transactions, ensure accurate tax reporting, and enable recipients to claim Input Tax Credit (ITC). A valid tax invoice is one of the most important documents under GST because ITC cannot normally be claimed without it.

Simple Example

ABC Electronics sells laptops worth ₹1,00,000 plus GST to a customer. At the time of delivery, ABC Electronics issues a GST tax invoice showing the taxable value and GST separately. The customer uses this invoice to claim eligible ITC.

Key Points

• Tax invoice is mandatory for taxable supplies.
  • Different rules apply to goods and services.
  • Invoice must contain prescribed GST particulars.
  • Bill of Supply is issued for exempt supplies and composition taxpayers.
  • Proper invoicing enables ITC claims.
  • Revised invoices may be issued in specified cases.

In One Line

Section 31 ensures that every taxable supply is supported by a proper GST document, facilitating tax compliance and Input Tax Credit claims.