Section 31 – Tax Invoice
Section 31 of CGST Act, 2017 – Tax Invoice
Updated on: February 2026 (as applicable till date)
Prepared by: Yours Tax Consultant
1. Scope and Importance of Section 31
Section 31 lays down the statutory requirement for issuance of tax invoice for supply of goods or services or both.
Issuance of a valid tax invoice is mandatory for:
- Charging GST
- Availing Input Tax Credit (ITC)
- Return filing and compliance
An incorrect or delayed invoice can result in:
- Denial of ITC
- Penalty under GST law
2. Tax Invoice for Supply of Goods – Section 31(1)
A registered person supplying taxable goods shall issue a tax invoice:
- Before or at the time of removal of goods for supply to recipient, or
- Before or at the time of delivery of goods, where movement is not involved
This applies to all taxable supplies of goods.
Relevant Rules:
3. Tax Invoice for Supply of Services – Section 31(2)
A registered person supplying taxable services shall issue a tax invoice:
- Before or after the provision of service
- But within a prescribed period
As per rules, invoice for services must be issued within 30 days from the date of supply of service.
Relevant Rule:
4. Continuous Supply of Goods – Section 31(4)
In case of continuous supply of goods:
- Invoice shall be issued before or at the time each statement is issued, or
- Each payment is received
This depends on the terms of contract.
5. Continuous Supply of Services – Section 31(5)
In case of continuous supply of services:
- Invoice shall be issued on or before the due date of payment, or
- Before receipt of payment, where due date is not ascertainable
If payment is linked to completion of event, invoice shall be issued on completion of event.
6. Invoice in Case of Cessation of Supply – Section 31(6)
If supply of services ceases under a contract:
- Invoice shall be issued at the time when supply ceases
- To the extent of supply made before such cessation
7. Revised Invoice – Section 31(3)(a)
A registered person may issue a revised invoice:
- Against invoices issued prior to registration
- Within one month from the date of issuance of registration certificate
This provision applies when registration is granted with retrospective effect.
8. Bill of Supply – Section 31(3)(c)
A registered person supplying:
- Exempt goods or services, or
- Goods or services under composition scheme
shall issue a Bill of Supply instead of tax invoice.
Relevant Rule:
9. Special Cases – Section 31(3)(b) & 31(3)(d)
Tax invoice may not be issued where:
- Value of supply is less than ₹200 (subject to conditions)
- Recipient is unregistered and does not require invoice
In such cases, a consolidated invoice may be issued.
10. Section 31 Read with E-Invoicing Provisions
Section 31 must be read with:
For notified classes of taxpayers, issuance of e-invoice is mandatory.
11. Common Practical Issues
- Delay in issuing invoice for services
- Wrong date of invoice affecting time of supply
- Invalid invoice leading to ITC denial
- Non-compliance with e-invoice provisions
12. Related Sections
- Section 12 – Time of supply of goods
- Section 13 – Time of supply of services
- Section 32 – Prohibition of unauthorised collection of tax
13. Professional Tip
A tax invoice is the backbone of GST. Any defect in invoice directly impacts tax payment, ITC and litigation exposure. Always align invoicing with Section 31 and Rules 46–49.
Disclaimer: This article is prepared based on the CGST Act, CGST Rules, notifications and prevailing legal position as applicable till date. Future amendments or judicial pronouncements may require revision.
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