CGST §31 — Tax invoice (and e-invoicing trigger thresholds)

Registered supplier must issue tax invoice for taxable supply with prescribed particulars. E-INVOICING MANDATORY for B2B / export supplies if aggregate turnover in any preceding FY since 2017-18 exceeded ₹5 CRORE (lowered from ₹10 Cr effective 1-Aug-2023). Invoice must be issued before or at time of supply (goods) / within 30 days of supply (services; 45 days for banks/NBFCs/insurers).

Key points

• §31(1) — for SUPPLY OF GOODS, a tax invoice must be issued BEFORE or AT THE TIME of (a) removal of goods for supply (where supply involves movement), or (b) delivery / making available to recipient (in other cases).
• §31(2) — for SUPPLY OF SERVICES, the invoice must be issued WITHIN 30 DAYS from the date of supply (45 days for banking companies, financial institutions, NBFCs, insurers under Rule 47).
• E-INVOICING — Rule 48(4) read with successive Notifications: registered persons (other than SEZ unit, insurance, banks, NBFCs, GTA, passenger transport, multiplex cinema) MUST issue e-invoice via Invoice Registration Portal (IRP) and obtain Invoice Reference Number (IRN) for B2B SUPPLIES, EXPORTS, and supplies to SEZ if AGGREGATE TURNOVER in any preceding financial year from 2017-18 onwards exceeded the applicable threshold.
• Threshold timeline: ₹500 Cr (1-Oct-2020), ₹100 Cr (1-Jan-2021), ₹50 Cr (1-Apr-2021), ₹20 Cr (1-Apr-2022), ₹10 Cr (1-Oct-2022), ₹5 Cr (1-Aug-2023).
• Once liable, the registration is permanent even if subsequent FY turnover falls.
• CONSEQUENCES of non-issuance: invoice NOT TREATED AS VALID;
• recipient CANNOT CLAIM ITC (Rule 48(5));
• supplier faces penalty under §122 (₹10,000 or amount of tax evaded, whichever is higher).
• BILL OF SUPPLY for exempt / composition supplier per §31(3)(c).
• RECEIPT VOUCHER on advance per §31(3)(d).

Reference: §31 CGST Act 2017 read with Rules 46-48