When do I issue a Tax Invoice vs Bill of Supply?

Issue a Tax Invoice when you supply taxable goods or services and charge GST. Issue a Bill of Supply when you supply exempt goods/services, are a composition scheme dealer, or are exporting (zero-rated). Bill of Supply does not show GST — it is for non-taxable or zero-rated supplies.

What is a Receipt Voucher in GST?

A Receipt Voucher is issued when you receive advance payment for a supply of goods or services. It evidences the receipt of payment. When the actual supply is made, you issue a Tax Invoice or Bill of Supply. If the supply is not made, you may issue a Refund Voucher.

Can a composition dealer issue a Tax Invoice?

No. A composition scheme dealer cannot issue a Tax Invoice because they do not charge GST on their supplies. They must issue a Bill of Supply instead. Composition dealers also cannot claim Input Tax Credit on their purchases.

What is the difference between Credit Note and Debit Note?

A Credit Note is issued when the taxable value or tax charged in the original invoice was higher than correct (e.g., goods returned, overcharging). A Debit Note is issued when the taxable value or tax charged was lower than correct. Both adjust the original invoice and must be reported in GST returns.

When must a Tax Invoice be issued?

For goods: before or at the time of removal or delivery. For services: within 30 days of supply (45 days for insurers, banks, NBFCs). The invoice must contain all mandatory particulars including GSTIN, HSN/SAC, tax breakup, and place of supply.

GST Invoicing

What Are the Three Types of Invoices Under GST?

Under the GST regime in India, there are three primary types of invoices that businesses use: Tax Invoice, Bill of Supply, and Receipt Voucher. Each serves a different purpose depending on whether the supply is taxable, exempt, or involves advance payment. Knowing when to use which document is essential for GST compliance.

The Three Main Types of GST Invoices

1. Tax Invoice

A Tax Invoice is issued by a registered person when supplying taxable goods or services. It must include GSTIN, HSN/SAC codes, taxable value, GST rate, and CGST/SGST or IGST amounts. The buyer uses it to claim Input Tax Credit (ITC).

When: For goods — before or at the time of removal/delivery. For services — within 30 days of supply (45 days for insurers, banks, NBFCs).

2. Bill of Supply

A Bill of Supply is issued when the supply is exempt or when the supplier is a composition scheme dealer or exporter. It does not show GST — the amount is generally non-taxable or zero-rated.

Who issues: Suppliers of exempt goods/services, composition dealers, exporters. No ITC can be claimed on a Bill of Supply.

3. Receipt Voucher

A Receipt Voucher is issued when the supplier receives advance payment for a supply. It evidences receipt of payment. When the actual supply is made, a Tax Invoice or Bill of Supply is issued. If the supply is not made, a Refund Voucher may be issued.

Related: Payment Voucher — issued when tax is payable on reverse charge by the recipient (e.g., payment to unregistered supplier).

Quick Comparison

Type	When to Use	Shows GST?	ITC Claimable?
Tax Invoice	Taxable goods/services	Yes	Yes
Bill of Supply	Exempt, composition, export	No	No
Receipt Voucher	Advance received	As applicable	On subsequent Tax Invoice

Tax Invoice — In Detail

The Tax Invoice is the most common document for GST-registered businesses selling taxable goods or services. It must include:

Supplier and recipient details (name, address, GSTIN)
Invoice number and date
Description, quantity, HSN/SAC
Taxable value, GST rate, CGST/SGST or IGST
Place of supply

For B2B supplies above the e-invoice threshold, the Tax Invoice must be e-invoiced (IRN obtained). Learn more in our GST compliant invoice guide.

Bill of Supply — In Detail

A Bill of Supply is used when:

Exempt supplies: Goods or services that are exempt from GST
Composition scheme: Dealers under composition cannot charge GST or issue Tax Invoices
Export: Zero-rated supplies — export is treated as zero-rated under GST

If the value per transaction is ₹200 or less and the recipient is unregistered (B2C), a consolidated Bill of Supply can be issued at the end of the day.

Receipt Voucher & Payment Voucher

Receipt Voucher — Issued when you receive advance payment. It documents the receipt. When you supply the goods/services, you issue a Tax Invoice or Bill of Supply. If you do not supply, you may issue a Refund Voucher.

Payment Voucher — Issued when tax is payable on reverse charge by the recipient (e.g., when you pay an unregistered supplier). The recipient self-assesses and pays GST; the voucher evidences the payment.

Credit Note & Debit Note

These are supplementary documents that adjust a previously issued Tax Invoice:

Credit Note

Issued when the original invoice overstated the taxable value or tax (e.g., goods returned, overcharging). It reduces the tax liability of the supplier.

Debit Note

Issued when the original invoice understated the taxable value or tax. It increases the tax liability. Both must be reported in GST returns by the due date.

Frequently Asked Questions

What are the three types of invoices under GST?: The three main types of GST invoices are: (1) Tax Invoice — for taxable supplies of goods or services; (2) Bill of Supply — for exempt supplies, composition scheme dealers, or exports; (3) Receipt Voucher — when advance payment is received for a supply. Some sources also include Payment Voucher (for reverse charge) as a key type.
When do I issue a Tax Invoice vs Bill of Supply?: Issue a Tax Invoice when you supply taxable goods or services and charge GST. Issue a Bill of Supply when you supply exempt goods/services, are a composition scheme dealer, or are exporting (zero-rated). Bill of Supply does not show GST — it is for non-taxable or zero-rated supplies.
What is a Receipt Voucher in GST?: A Receipt Voucher is issued when you receive advance payment for a supply of goods or services. It evidences the receipt of payment. When the actual supply is made, you issue a Tax Invoice or Bill of Supply. If the supply is not made, you may issue a Refund Voucher.
Can a composition dealer issue a Tax Invoice?: No. A composition scheme dealer cannot issue a Tax Invoice because they do not charge GST on their supplies. They must issue a Bill of Supply instead. Composition dealers also cannot claim Input Tax Credit on their purchases.
What is the difference between Credit Note and Debit Note?: A Credit Note is issued when the taxable value or tax charged in the original invoice was higher than correct (e.g., goods returned, overcharging). A Debit Note is issued when the taxable value or tax charged was lower than correct. Both adjust the original invoice and must be reported in GST returns.
When must a Tax Invoice be issued?: For goods: before or at the time of removal or delivery. For services: within 30 days of supply (45 days for insurers, banks, NBFCs). The invoice must contain all mandatory particulars including GSTIN, HSN/SAC, tax breakup, and place of supply.

Create the right invoice type for your business

Use our free invoice generator to create GST compliant Tax Invoices. For Bill of Supply and other document types, Invoism supports multiple invoice formats.

Free Invoice Generator