Indirect Tax Laws · Tax Invoice, Credit and Debit Notes

Special Documents under GST: Receipt Voucher, Refund Voucher, Delivery Challan

Updated 5 October 2026

Special documents under GST cover situations where a normal tax invoice does not fit. Issue a receipt voucher on receipt of an advance for services, a refund voucher if the advance is returned without any supply, an invoice and payment voucher for notified reverse charge supplies, and a delivery challan when goods move without a supply invoice.

Understand Special Documents: Receipt Voucher, Refund Voucher, Delivery Challan

A tax invoice is issued when a supply happens. But some events carry tax or movement without a completed supply. GST handles these with special documents. Each one answers one question: what happened, and who needs proof of it?

Receipt voucher. Section 31(3)(d) requires a registered person who receives an advance for a supply of goods or services to issue a receipt voucher. It records the advance and the tax in it. Tax on an advance for services becomes payable when the advance is received. Tax on an advance for goods is exempt under Notification 66/2017-CT (for persons other than composition taxpayers), so no tax is shown or paid on it. The receipt-voucher requirement in Section 31(3)(d) still refers to goods as well as services, so never write that a voucher is not required for a goods advance. The supply invoice raises the tax when the goods are supplied. Do not claim tax on a goods advance unless the question says otherwise.

Refund voucher. Sometimes the advance is received and the supply never happens. The supplier then returns the money and issues a refund voucher against the receipt voucher. It reverses the earlier tax position for that advance.

Reverse charge documents. Under reverse charge, the recipient pays the tax. These documents apply only where tax is payable under reverse charge. When a registered recipient receives a notified reverse-charge supply from an unregistered supplier, the recipient issues an invoice for that supply under Section 31(3)(f). The recipient also issues a payment voucher at the time of making payment to the supplier under Section 31(3)(g). These are self-generated records. They support the tax paid and the input tax credit claim. A purchase from an unregistered supplier that is not a notified reverse-charge supply does not call for these documents.

Delivery challan. Goods sometimes move without being sold at that moment. Examples are job work, goods sent on approval (sale or return), transport that is not a supply, and liquid gas where the quantity is not known at removal. Goods can also move in batches or in knocked-down form. A delivery challan travels with such goods in place of an invoice. It is not a tax invoice, and it does not create a sale. The sale is invoiced later, when it actually takes place. The exception is goods moving in lots or in semi-knocked down or completely knocked down form. There the invoice must be issued before or at the time of delivery of the first consignment, and a challan accompanies each lot.

Key rules to remember

Tax contained in a tax-inclusive advance: Tax = Advance × Rate ÷ (100 + Rate); Use this when the advance is received as a lump sum and treated as inclusive of tax. Taxable value = Advance − Tax.
Receipt voucher trigger: Advance received for goods or services → receipt voucher at the time of receipt (Section 31(3)(d)); tax on an advance for services is payable; Section 31(3)(d) requires a receipt voucher for an advance for goods or services. For goods, Notification 66/2017-CT exempts the advance from tax, so no tax is shown or paid, but do not say the voucher is not required. The supply invoice raises the tax when the goods are supplied. Do not claim tax on a goods advance unless the question says otherwise.
Refund voucher trigger: Advance received + no supply made + money returned → issue refund voucher against the receipt voucher; Mention the receipt voucher number and date in the answer.
Reverse charge documents: Only where tax is payable under reverse charge: invoice by recipient for notified supply from an unregistered supplier (Section 31(3)(f)) + payment voucher at the time of payment to the supplier (Section 31(3)(g)); The recipient issues both. Where the supplier is a registered person making a notified reverse-charge supply, the supplier's invoice itself should show reverse charge.
Delivery challan use cases: Job work | transport other than by supply | supply on approval | liquid gas with unknown quantity | goods in lots or knocked-down form | other cases as prescribed; Delivery challan is for movement. Invoice is for supply. Do not mix them up. For goods in lots or knocked-down form, the invoice is issued before or at the time of delivery of the first consignment, and a challan accompanies each lot.
Delivery challan copies: Triplicate: original for consignee, duplicate for transporter, triplicate for consignor; Serial number must be consecutive and unique, not exceeding 16 characters. For goods in lots or knocked-down form (Rule 55(5)), the invoice is issued first, and a challan then accompanies each lot.
Supply on approval, invoice deadline: Invoice on or before the earlier of: (i) the date the supply takes place (approval), (ii) six months from the date of removal (Section 31(7)); If the recipient has not approved or returned the goods by six months, the invoice must still be issued by then. Supply on approval takes place at the time of approval.

How to solve Special Documents: Receipt Voucher, Refund Voucher, Delivery Challan questions

Use the same method for every question on special documents. Decide the event first, then the document, then the timing and contents.

1Read the facts and name the event: advance, refund of advance, reverse charge purchase, or goods moving without sale.
2Check what is being supplied: goods or services. This decides whether an advance creates a tax liability.
3Pick the document: receipt voucher for an advance for goods or services (Section 31(3)(d)). Tax is payable on an advance for services. Tax on a goods advance is exempt under Notification 66/2017-CT, so no tax is shown or paid, but the voucher requirement is not removed. Refund voucher if no supply follows, invoice and payment voucher for notified reverse charge supplies, delivery challan for goods moving without supply.
4State who issues it and when. The supplier issues the receipt and refund vouchers. The recipient issues the reverse charge invoice and payment voucher, only where tax is payable under reverse charge.
5Do the tax working if numbers are given. Back out tax from a tax-inclusive advance and split it into CGST and SGST, or IGST, based on place of supply.
6For a delivery challan, state the copies, serial numbering and when the invoice must follow. For approval supplies, apply the six-month limit. For goods in lots or knocked-down form, the invoice comes first, before or at delivery of the first consignment.
7Write the conclusion in one line: the document, its issuer, its timing and its tax effect.

Quickest way: Event-to-document map

When to use it: Use this in case-scenario MCQs and short answers where you need the right document in under a minute.

Money first, supply later: receipt voucher (Section 31(3)(d)). Tax is payable on an advance for services. On a goods advance, no tax is shown or paid (Notification 66/2017-CT), but do not say the voucher is not required.
Money returned, no supply: refund voucher.
You are the buyer and you owe the tax under reverse charge on a notified supply: your own invoice for the supply, plus a payment voucher when you pay.
Goods moving, not sold yet: delivery challan.
Sale happens later: invoice on or before the date of supply, and for approval goods no later than six months from removal. Goods in lots or knocked-down form are the exception: invoice before or at delivery of the first consignment, with a challan for each lot.
If numbers are given, tax = amount × rate ÷ (100 + rate) for inclusive amounts.

Common mistakes in Special Documents: Receipt Voucher, Refund Voucher, Delivery Challan

Treating a delivery challan as a tax invoice.
Both travel with goods and look similar.
Fix: A challan records movement only. The tax invoice is issued when the supply actually takes place, and the challan does not replace it for the sale.
Charging GST on an advance received for goods, or saying no receipt voucher is needed for it.
Students apply the services rule to goods, or treat the tax exemption as removing the voucher requirement.
Fix: Tax on advances for goods is exempt (Notification 66/2017-CT), so no tax is shown or paid on the advance and tax arises at the time of the supply. Check whether the question is on goods or services before computing. Section 31(3)(d) requires a receipt voucher for an advance for goods or services, so do not say the voucher is not required. The supply invoice raises the tax when the goods are supplied.
Forgetting the refund voucher when an advance is returned.
Students think the credit note covers it.
Fix: A credit note is for an invoiced supply. Where only an advance was taken and the supply never happened, issue a refund voucher against the receipt voucher.
Saying the unregistered supplier issues the invoice under reverse charge, or that every purchase from an unregistered supplier needs a self-invoice.
Students assume the supplier always issues the invoice, or apply reverse charge to all unregistered purchases.
Fix: The recipient issues the invoice (Section 31(3)(f)) only for notified reverse-charge supplies from unregistered suppliers, where tax is payable under reverse charge. Add a payment voucher at the time of payment to the supplier (Section 31(3)(g)).
Missing the six-month limit for goods sent on approval.
Students wait for the recipient's approval only.
Fix: Invoice must be issued on or before the earlier of approval or six months from removal (Section 31(7)). Calculate both dates and choose the earlier.
Applying the tax rate on the advance as if it is exclusive of tax.
Students multiply advance by rate without reading the question.
Fix: If the amount is received as a lump sum with no separate tax, back out tax with Rate ÷ (100 + Rate). State your assumption.

Worked examples

Example 1

Sunrise Consultants, a registered firm in Pune, agrees to provide a consulting service to a client in Pune for ₹4,00,000 plus 18% GST. On 5 June 2027 it receives an advance of ₹1,18,000, with GST included in this amount. In August 2027 the client cancels the assignment and the advance is returned. Name the documents required and show the tax in the advance.

Show the solution

Event: advance received for services. A tax liability arises on receipt, so a receipt voucher must be issued on 5 June 2027.
Tax in the advance = 1,18,000 × 18 ÷ 118 = ₹18,000. Taxable value of the advance = 1,18,000 − 18,000 = ₹1,00,000.
Place of supply is Pune and the supplier is in Pune, so the supply is intra-state. CGST = ₹9,000 and SGST = ₹9,000.
The receipt voucher shows the supplier and recipient details, the serial number, date, description of service, advance amount, rate of tax, CGST and SGST, and place of supply.
In August 2027 the assignment is cancelled and the money is returned. No supply was made, so the firm issues a refund voucher against the receipt voucher, and the tax on that advance is reversed in its tax position.

Answer: Receipt voucher on 5 June 2027 for ₹1,18,000, with tax of ₹18,000 (CGST ₹9,000 and SGST ₹9,000). On cancellation, a refund voucher against that receipt voucher.

Example 2

Meghdoot Traders, a registered dealer in Jaipur, sends 20 machines on approval to a customer in Jaipur on 10 March 2027, with no sale at the time of dispatch. The customer approves 12 of them on 20 August 2027 and keeps the rest, undecided. Which document accompanies the goods on 10 March 2027, and by when must invoices be issued?

Show the solution

Event: goods are moving on approval, so no supply has occurred at removal. The document is a delivery challan, not a tax invoice.
The challan is prepared in triplicate (consignee, transporter, consignor), serially numbered, with the details of the consignor, consignee and goods.
Section 31(7) applies: for goods removed on approval for sale or return, the invoice is due before or at the time of supply, or within six months from the date of removal, whichever is earlier.
Assumption: the six-month period from removal on 10 March 2027 is taken to end on 9 September 2027. Counting it to 10 September 2027 can be debated, so state the assumption in your answer.
For the 12 approved machines, supply takes place on approval on 20 August 2027. 20 August 2027 is earlier than 9 September 2027, so the invoice for these 12 machines is due on or before 20 August 2027.
For the remaining 8 machines, there is no approval and no return so far. If they are not approved or returned by 9 September 2027, the invoice for them must be issued on or before 9 September 2027 under the six-month limit in Section 31(7). If they are approved earlier, invoice on approval. If they are returned before then, there is no supply and no invoice.

Answer: A delivery challan accompanies the goods on 10 March 2027. The invoice for the 12 approved machines is due on or before 20 August 2027. For the remaining 8, if they are not returned or approved by 9 September 2027 (assuming the six months end on that date), the invoice must be issued on or before 9 September 2027.

Exam tips

In case-scenario MCQs, find the keyword first: advance, cancelled, reverse charge, approval, job work. It points straight to the document.
Always say who issues the document and when. Marks are often given for the issuer and the timing.
Check goods versus services before computing tax on an advance. This is the most common trap.
For reverse charge, confirm that the supply is a notified reverse-charge supply before writing about the recipient's invoice and payment voucher.
For approval supplies, compute both dates, approval date and six months from removal, and write the earlier one.
Write answers in provision-facts-conclusion form. Keep the final line to the document and its effect.

Practice questions from Tax Invoice, Credit and Debit Notes

Special Documents: Receipt Voucher, Refund Voucher, Delivery Challan: frequently asked questions

When must a receipt voucher be issued under GST?

A supplier issues a receipt voucher when an advance is received for a supply of goods or services (Section 31(3)(d)). The voucher records the advance, the rate and amount of tax, and the place of supply. Tax is payable on an advance for services. For goods, the advance is exempt from tax (Notification 66/2017-CT), so no tax is shown or paid, but the voucher requirement is not removed. The supply invoice raises the tax when the goods are supplied.

What is a refund voucher and how does it differ from a credit note?

A refund voucher is issued when an advance has been received, no supply is made, and the money is returned. A credit note is issued against an invoice already raised, for reasons such as return or a price reduction. If there was never an invoice, use a refund voucher against the receipt voucher.

Who issues the invoice for a reverse charge supply from an unregistered person?

Where tax is payable under reverse charge on a notified supply from an unregistered supplier, the registered recipient issues the invoice for the supply received (Section 31(3)(f)). The recipient also issues a payment voucher at the time of making payment to the supplier (Section 31(3)(g)). These support the tax paid under reverse charge and the credit claim.

What is the difference between an invoice and a delivery challan?

A tax invoice records a supply and its tax. A delivery challan records movement of goods where no supply is being invoiced at that time, such as job work, goods on approval or transport otherwise than by supply. The challan does not replace the invoice for the eventual sale. For goods moving in lots or knocked-down form, the invoice is issued first, before or at delivery of the first consignment, and a challan accompanies each lot.

Is the six-month limit relevant to all delivery challans?

No. The six-month limit applies to supply on approval, where the invoice is due by the earlier of the supply date or six months from removal (Section 31(7)). Other uses, such as job work, follow their own procedures.