Guide on Tax Invoice, Bill of Supply & Delivery Challan

— Tax Invoice, Bill of Supply, Credit Notes, Delivery Challans & Special Documents Explained

🧾 Introduction

In the GST system, documentation is the core evidence of supply and plays a crucial role in determining tax liability, eligibility for Input Tax Credit (ITC), and compliance with law.

The CGST Rules, 2017, particularly Rules 46 to 55A, lay down comprehensive provisions on how tax invoices, bills of supply, vouchers, and challans are to be issued, maintained, and reported.

Failure to comply with these rules can lead to:

Denial of ITC (Section 16),
Penalty under Section 122, and
Prosecution in case of fraudulent documentation.

Let us now study each rule with legal text essence, practical explanation, recent amendments, and examples.

⚖️ Rule 46 – Tax Invoice

🧩 Legal Provision:

As per Section 31 of the CGST Act, every registered supplier must issue a tax invoice for every supply of goods or services unless the supply is exempt.

Rule 46 defines what details must be mentioned in the tax invoice.

📄 Mandatory Particulars in a Tax Invoice

Sl. No.	Particulars	Remarks
1	Name, address, and GSTIN of supplier	Mandatory for all registered suppliers
2	Consecutive serial number (max 16 characters)	Unique per financial year
3	Date of issue of invoice	Crucial for determining time of supply
4	Name, address, and GSTIN/UIN of recipient	For B2B supplies
5	Name, address, delivery address (for unregistered recipient)	For B2C large-value supplies
6	HSN code (for goods) / SAC (for services)	Mandatory as per Notification No. 12/2017-CT (Rate), amended
7	Description of goods/services	Clear identification required
8	Quantity, unit, and total value	For goods only
9	Taxable value after discount	Discount must be pre-agreed
10	Rate of tax (CGST, SGST/UTGST, IGST, Cess)	Mention each component separately
11	Amount of tax	In separate columns
12	Place of supply and name of State (for inter-State)	Mandatory for IGST
13	Signature/digital signature	By supplier or authorized signatory

🧾 Additional Provisions:

For exports, the invoice must carry the endorsement:
“Supply meant for export / supply to SEZ unit or developer for authorized operations under Letter of Undertaking or Bond without payment of IGST.”
The currency should be in Indian Rupees or convertible foreign currency.

📘 Example:

A trader in Gujarat sells machinery worth ₹5,00,000 to a registered buyer in Maharashtra.

IGST @18% = ₹90,000
Total invoice = ₹5,90,000
Must show Place of Supply: Maharashtra.

⏱️ Rule 47 – Time Limit for Issuing Tax Invoice

Type of Supply	When Invoice to be Issued
Goods (movement involved)	Before or at time of removal of goods
Goods (no movement)	Before or at time of delivery
Services	Within 30 days from supply date
Banking, insurance, financial institutions	Within 45 days

📌 Example:

A CA firm provides consultancy services on 1st October 2025. Invoice must be issued on or before 31st October 2025.

🧾 Rule 48 – Manner of Issuing Invoice

📦 Number of Copies:

Type	Copies	Purpose
Goods	3	Original (recipient), Duplicate (transporter), Triplicate (supplier)
Services	2	Original (recipient), Duplicate (supplier)

🔗 Rule 48(4) – E-Invoicing (Electronic Invoicing)

Introduced vide Notification No. 68/2019 – Central Tax.

Applicable to taxpayers whose aggregate turnover exceeds the limit notified by CBIC (currently ₹5 crore from 01.08.2023).
Invoice must be uploaded on Invoice Registration Portal (IRP).
The IRP issues a unique Invoice Reference Number (IRN) and QR code.

⚠️ Non-Compliance:

If an e-invoice is not generated (where applicable), the invoice is invalid and no ITC can be availed.

📜 Rule 49 – Bill of Supply

Issued by:

Composition taxpayers (Section 10),
Suppliers of exempt goods or services, or
For transactions where tax is not chargeable.

🧾 Contents:

Same as a tax invoice, but without tax rate or amount.

Example:
A registered tuition teacher (exempt service) issues a Bill of Supply for ₹25,000.

💰 Rule 50 – Receipt Voucher

Issued when advance payment is received before supply.

Key Details:

Date, serial number, supplier/recipient details
Description of goods/services
Amount of advance
Tax rate and tax amount (if determinable)
Place of supply

If tax rate or nature (inter/intra-state) is not determinable, 18% tax shall be presumed (as per proviso).

💵 Rule 51 – Refund Voucher

When supply is not made after receipt of advance, supplier issues a Refund Voucher and returns the advance.

This ensures:

Proper adjustment of liability,
Reversal of earlier tax paid through receipt voucher.

💳 Rule 52 – Payment Voucher

When tax is payable under Reverse Charge Mechanism (RCM), the recipient must issue:

Self-Invoice (under Section 31(3)(f)), and

Payment Voucher when making payment to supplier.

Example:

A company avails legal services from an advocate (unregistered).

It must issue a self-invoice and payment voucher at the time of payment.

📉 Rule 53 – Credit and Debit Notes

📕 Credit Note

Issued when:

Goods returned by customer,
Taxable value/tax charged is more than actual,
Post-sale discount is given.

📗 Debit Note

Issued when:

Taxable value/tax charged is less than actual payable.

🧾 Mandatory Details:

Particulars	Requirement
Supplier details	Name, address, GSTIN
Serial number & date	Consecutive & unique
Recipient details	Name, address, GSTIN/UIN
Reference to original invoice	Must mention original invoice number & date
Reason for issuing	Return, discount, correction, etc.
Signature	Manual or digital

Note:
As per Section 34(2), a credit note for a financial year can be declared up to 30th November of the next financial year or before filing annual return — whichever is earlier.

🚛 Rule 54 – Tax Invoice or Bill of Supply in Special Cases

Applies to specific categories:

Category	Special Provision
Banks, NBFCs, Insurance Companies	May issue consolidated statement for supplies made in a month; serial number not mandatory.
Goods Transport Agency (GTA)	Must issue invoice with vehicle number, consignee details, freight charges, and GST rate.
Passenger Transport Services	Can issue ticket as tax invoice (electronic or physical).
Cinemas & Multiplexes	Can treat admission ticket as tax invoice.

📦 Rule 55 – Transportation of Goods Without Issue of Invoice (Delivery Challan)

In certain cases, goods can be transported without a tax invoice, but with a Delivery Challan.

📋 Cases Allowed:

Goods sent for job work (Section 143)
Goods sent for approval (Section 31(7))
Goods sent on returnable basis
Goods transported for reasons other than supply

📦 Contents of Delivery Challan:

Date and serial number
Consignor and consignee details
Description and quantity
Tax rate (if applicable)
Place of supply
Signature

If goods are transported in parts, first challan must mention total quantity, and each subsequent challan must refer to the original.

🧾 Delivery Challan Example:

A manufacturer sends 100 chairs to a job worker for polishing.
He issues a delivery challan with details of quantity, vehicle number, and job worker’s address.
After completion, the job worker returns goods with reference to the same challan.

🚚 Rule 55A – Tax Invoice or Bill of Supply to Accompany Transport

Inserted via Notification No. 3/2018 – CT dated 23.01.2018

The person in charge of the conveyance shall carry a copy of the tax invoice or bill of supply along with the e-way bill while transporting goods.

This ensures authenticity during inspection under Rule 138B.

📊 Summary Table of Rules 46–55A

Rule No.	Description	Key Objective
46	Tax Invoice	Prescribes mandatory contents
47	Time Limit	Specifies time for invoice issue
48	Manner of Issuance	Details copies & e-invoicing
49	Bill of Supply	Used for exempt or composition
50	Receipt Voucher	For advance payment
51	Refund Voucher	For refunding advance
52	Payment Voucher	For RCM transactions
53	Credit/Debit Note	Adjustment after invoice issue
54	Special Cases	Banking, GTA, cinema, etc.
55	Delivery Challan	Movement of goods without invoice
55A	Supporting Document	Invoice or bill to accompany goods

🧠 Practical Compliance Checklist

✅ Ensure each invoice or document:

Contains GSTIN, serial number, and proper details
Matches GSTR-1 and GSTR-3B data
Uses proper HSN/SAC codes
Is uploaded on IRP if under e-invoicing

✅ Keep digital backups of all invoices and vouchers for at least 72 months (6 years) as per Section 36.

✅ During audit or inspection, produce invoice trail and delivery challans to prove genuineness of supply.

⚖️ Legal & Notification References

Section 31, 34 & 143 of CGST Act, 2017
Rules 46–55A, CGST Rules, 2017
Notification No. 68/2019 – CT (E-Invoice)
Notification No. 3/2018 – CT (Rule 55A insertion)
Notification No. 12/2017 – CT (Rate) (HSN applicability)
Circular No. 206/18/2023-GST (E-invoice clarifications)

💬 Conclusion

Rules 46 to 55A of the CGST Rules, 2017 provide the complete documentary framework of GST compliance — from issuing tax invoices to handling advances, refunds, and transportation of goods.

Accurate documentation ensures:

Smooth flow of ITC,
Correct determination of supply and tax,
Avoidance of litigation, and
Transparent business transactions.

✍️ A compliant invoice is not just a paper — it’s your legal protection under GST.

More read : Section 31 of CGST Act Rule 46 – Detailed Explanation, Amendments & Practical Scenarios

Guide on Tax Invoice, Bill of Supply & Delivery Challan