Issuing a tax invoice is one of the most fundamental compliance requirements under the Goods and Services Tax (GST) regime. A tax invoice serves as:

• Evidence of supply of goods or services,
• Document for claiming Input Tax Credit (ITC), and
• Proof for movement of goods during transportation.

Rule 48 of the CGST Rules, 2017 lays down the manner in which invoices are to be issued for both goods and services, the number of copies required, and how details of such invoices are to be furnished in the GST portal.

Applicability of Rule 48

This rule applies to:

• All registered persons making taxable supply of goods or services.
• Both intra-State and inter-State supplies.
• Supplies where tax invoice is mandatory under Section 31 of the CGST Act.

However, separate provisions exist for:

• Bill of supply (for exempted goods/services or composition dealers – Rule 49),
• Receipt voucher, refund voucher, payment voucher, etc. (Rules 50–52),
• Special cases like banking, insurance, passenger transport, etc. (Rule 54).

Invoices for Supply of Goods

• Number of Copies: Triplicate (3 copies).
• Marking of Copies:
  • Original for Recipient → Given to the buyer; enables buyer to claim ITC.
  • Duplicate for Transporter → Accompanies goods during movement; transporter must carry it as evidence of supply.
  • Triplicate for Supplier → Retained by the supplier for record-keeping and compliance.

Example:
A manufacturer in Delhi sells goods to a buyer in Mumbai. He must issue 3 copies of invoice:

1. Buyer’s copy – to avail ITC,
2. Transporter’s copy – to be carried during transport (along with e-way bill, if applicable),
3. Supplier’s copy – retained for accounts and GST return filing.

Invoices for Supply of Services

• Number of Copies: Duplicate (2 copies).
• Marking of Copies:
  • Original for Recipient → Given to the service recipient for availing ITC.
  • Duplicate for Supplier → Retained by service provider for compliance.

Note: Since services do not involve physical movement, there is no requirement of a transporter’s copy.

Furnishing of Invoice Details in GST Returns

• Invoice serial number used in a tax period must be furnished electronically in FORM GSTR-1 through the GST common portal.
• This ensures that:
  • The GST system tracks invoices issued by every registered person,
  • Auto-population of recipient’s ITC in GSTR-2B,
  • Cross-verification of supply between supplier and recipient.

Penalties for Non-Compliance

• Section 122 CGST Act: Penalty of ₹10,000 or amount of tax evaded (whichever is higher) if invoice not issued correctly.
• Section 125 CGST Act: General penalty up to ₹25,000 for contravention of rules.

Section 16(2) CGST Act: ITC may be denied to recipient if supplier fails to issue invoice as per law.