Taxation · Tax Invoice; Credit and Debit Notes

Special Cases of Invoicing and Other Documents under GST

Updated 5 October 2026

Special invoicing documents are what GST law requires when a normal tax invoice does not fit: a bill of supply for exempt or composition supplies, receipt and refund vouchers for advances, a payment voucher for reverse charge, an e-invoice for notified turnover, and an ISD invoice. Identify the transaction, pick the document, then check the timing.

Understand Special Cases of Invoicing and Other Documents

A tax invoice is the standard document for a taxable supply by a registered person. But not every transaction is a plain taxable sale. GST law therefore prescribes other documents, mainly under Section 31 of the CGST Act, 2017 and Rules 46 to 55A of the CGST Rules. Your job in the exam is to match the situation to the document.

A bill of supply replaces the tax invoice when the supplier cannot charge tax. This happens when a registered person supplies only exempt goods or services, or when the supplier is a composition dealer. It shows no tax amount. A composition dealer writes "composition taxable person, not eligible to collect tax on supplies" at the top of the bill. If one recipient gets both taxable and exempt supplies, the supplier may issue one invoice-cum-bill of supply (Rule 46A).

There is also a small value relaxation, and its conditions differ for the two documents.

Tax invoice (Rule 46): the supplier need not issue one if the value is less than ₹200, the recipient is unregistered and the recipient does not require an invoice. All three conditions must be met.
Bill of supply (Rule 49): the supplier need not issue one if the value is less than ₹200 and the recipient does not require it.

At the end of the day, the supplier issues a consolidated tax invoice or a consolidated bill of supply, as the case may be, for all such supplies.

Advance payments have their own documents. When you receive an advance on which you are liable to pay tax, you issue a receipt voucher at the time of receipt. Section 31(3)(d) requires this. A composition dealer is not liable to collect tax, so he does not issue a receipt voucher. He issues a bill of supply when he makes the supply. For suppliers other than composition dealers, Notification 66/2017-CT provides that no tax is payable on advances received for supply of goods. The time of supply of goods is therefore fixed by the invoice or the supply. For these suppliers, a receipt voucher is therefore mainly relevant for advances on services. If the supply is then not made and no tax invoice is issued, you issue a refund voucher when you return the money. Section 31(3)(e) requires this.

Reverse charge has its own documents too. Reverse charge applies in two ways. Under Section 9(3) of the CGST Act (Section 5(3) of the IGST Act), the recipient pays tax on notified goods or services, even when the supplier is registered. Examples are goods transport agency services and legal services. Under Section 9(4) of the CGST Act (Section 5(4) of the IGST Act), the recipient pays tax on notified classes of supplies received from an unregistered supplier. Two documents arise. Under Section 31(3)(f), a registered recipient issues an invoice in respect of goods or services received from an unregistered supplier, on which tax is payable by him under reverse charge (Section 9(3) or 9(4)). Under Section 31(3)(g), he issues a payment voucher at the time of making payment to the supplier.

Some supplies run for a long time. For continuous supply of goods, the invoice is issued before or at the time each statement of account is issued or each payment is received. For continuous supply of services, the time depends on the contract. If the due date of payment is ascertainable, issue the invoice on or before that date. If it is not, issue it before or at the time payment is received. If payment is linked to completion of an event, issue it on or before completion. Other services follow the general rule: invoice within 30 days of supply (45 days for insurers, banks and NBFCs).

E-invoicing means a registered person above the notified turnover limit uploads invoice details on the Invoice Registration Portal (IRP). The IRP returns a unique Invoice Reference Number (IRN) and a QR code. The current limit is ₹5 crore of aggregate turnover in any preceding financial year from 2017-18. Some notified classes are exempt, such as SEZ units, insurers, banks and NBFCs. Check the latest notification for the full list of exempt classes. Finally, an Input Service Distributor (ISD) issues an ISD invoice to distribute credit to its branches. It is not a tax invoice for a supply.

Key rules to remember

Bill of supply: when: Exempt supply by registered person OR supply by composition dealer → Bill of supply (no tax shown); If taxable and exempt supplies go to the same recipient, an invoice-cum-bill of supply may be issued.
Small value relaxation: Tax invoice: value < ₹200 + recipient unregistered + recipient does not require invoice → not required. Bill of supply: value < ₹200 + recipient does not require it → not required. Issue a consolidated invoice or bill of supply at day end; The three conditions apply to the tax invoice only. For the bill of supply, only two conditions apply (Rule 49). Do not mix them.
Receipt voucher: Advance received on which the registered person is liable to pay tax → receipt voucher at time of receipt; Section 31(3)(d) applies where the registered person is liable to pay tax on the advance. A composition dealer is not liable to collect tax, so he does not issue a receipt voucher; he issues a bill of supply. For suppliers other than composition dealers, Notification 66/2017-CT provides that no tax is payable on advances for goods, so a receipt voucher is mainly relevant for advances on services.
Refund voucher: Advance received + no supply made + no tax invoice issued → refund voucher at time of refund; Section 31(3)(e) requires it. It is issued against the earlier receipt voucher.
Payment voucher: Supply on which the registered recipient pays tax under reverse charge (Section 9(3) or Section 9(4)) → payment voucher at time of making payment to supplier. Supplier unregistered → recipient also issues an invoice for the supply received; Under Section 31(3)(g), the recipient issues a payment voucher at the time of making payment to the supplier. Reverse charge covers notified goods or services under Section 9(3) CGST / 5(3) IGST, even from a registered supplier (for example GTA or legal services), and notified classes from an unregistered supplier under Section 9(4) CGST / 5(4) IGST. Under Section 31(3)(f), the registered recipient issues an invoice in respect of goods or services received from an unregistered supplier, on which tax is payable by him under reverse charge (Section 9(3) or 9(4)).
Continuous supply of goods: Invoice before or at the time of each statement of account or each payment received; The Commissioner may notify such supplies.
Continuous supply of services: Due date ascertainable → on or before due date; not ascertainable → before or at receipt of payment; linked to event → on or before completion of event; Continuous supply of services means a supply for more than 3 months with periodic payment obligation.
General time limit for services: Invoice within 30 days of supply (45 days for insurer, bank, financial institution including NBFC); For goods involving movement, invoice is issued before or at the time of removal.
E-invoicing: Aggregate turnover in any preceding FY from 2017-18 > ₹5 crore (notified limit) → report invoice to IRP and get IRN; Check the notified exempt classes. Turnover limits are notified and can change.

How to solve Special Cases of Invoicing and Other Documents questions

Use this method for any question on special invoicing documents. It works for both case-study and MCQ formats.

1Identify the supplier: regular registered person, composition dealer, ISD, or recipient under reverse charge.
2Identify the nature of supply: taxable, exempt, mixed, or an advance or refund event.
3Pick the document: tax invoice, bill of supply, invoice-cum-bill of supply, receipt voucher, refund voucher, payment voucher or ISD invoice.
4Check for relaxations. Value below ₹200 matters for both documents, but a tax invoice also needs an unregistered recipient who does not want an invoice, while a bill of supply only needs a recipient who does not require it.
5Fix the time of issue using the rule for goods, services, continuous supply or advance.
6Check e-invoicing: compare aggregate turnover of any preceding year from 2017-18 with the notified limit and check the notified exempt classes.
7Write the answer in provision-facts-conclusion form, naming the document and the time limit.

Quickest way: Match the situation to the document in 20 seconds

When to use it: Use this for MCQs and for the short 'which document' parts of descriptive questions.

Ask first: can tax be charged? If no (exempt or composition), the answer is bill of supply.
Ask: is money received before supply and is tax payable on it? Because of Notification 66/2017-CT, no tax is payable on advances for goods, so the receipt voucher is mainly relevant for advances on services. If the supply is cancelled and money is returned, refund voucher.
Ask: is the buyer paying tax under reverse charge, whether under Section 9(3) or Section 9(4)? If yes, payment voucher when paying the supplier. If the supplier is unregistered, the recipient also issues an invoice for the supply received.
Ask: is the supply continuous? If yes, find the trigger: statement or payment for goods; due date, payment or event completion for services.
In MCQs, eliminate options that mix up tax invoice with bill of supply, or that apply the e-invoice limit to the wrong turnover year.
In written answers, state the rule, apply it to the facts, give the conclusion in one line, and name the rule number only if you are sure of it.

Common mistakes in Special Cases of Invoicing and Other Documents

Saying a composition dealer issues a tax invoice.
Students link every sale with an invoice and forget composition dealers cannot collect tax.
Fix: Remember: composition or exempt supply means bill of supply, with no tax shown.
Treating a bill of supply as optional for all exempt suppliers, or issuing one for taxable supplies.
Students mix the ₹200 relaxation with the main rule.
Fix: The ₹200 relaxation has different conditions for each document. For a tax invoice: value under ₹200, unregistered recipient and recipient not requiring an invoice. For a bill of supply: value under ₹200 and recipient not requiring it. A consolidated document is issued at day end. Otherwise exempt supplies need a bill of supply. For mixed supplies to one recipient, use an invoice-cum-bill of supply.
Issuing a refund voucher whenever money is returned.
The word refund sounds general.
Fix: A refund voucher is for an advance that was not followed by a supply and tax invoice. A normal sales return is handled by a credit note.
Confusing the receipt voucher and the payment voucher.
Both relate to money, so students mix who issues what.
Fix: The supplier issues a receipt voucher when it receives an advance on which it is liable to pay tax, mainly an advance on services. The recipient issues a payment voucher at the time it pays the supplier for a supply on which it pays tax under reverse charge, whether under Section 9(3) or Section 9(4). If that supplier is unregistered, the recipient also issues an invoice for the goods or services received (Section 31(3)(f)).
Using the wrong time for invoicing continuous supplies.
Students apply the general 30-day rule to everything.
Fix: For continuous supply of goods, invoice at each statement or payment. For services, use the due-date, payment or event-completion rule.
Applying e-invoicing based on current-year turnover, or to all taxpayers.
Students remember only the ₹5 crore number.
Fix: Test turnover in any preceding financial year from 2017-18, and check the notified exempt classes such as SEZ units, insurers, banks and NBFCs.

Worked examples

Example 1

State the document to be issued in each case: (a) Ravi, a composition dealer, sells goods to a customer. (b) Meera, registered, sells a taxable item and an exempt item to the same customer. (c) Sunil Traders, a registered trader with aggregate turnover of ₹6 crore in the preceding year, makes a B2B sale. (d) Anil, registered, receives a service from an unregistered supplier, and the tax on that service is payable by Anil as recipient under reverse charge (Section 9(4) of the CGST Act, Section 5(4) of the IGST Act for inter-State supply).

Show the solution

Case (a): a composition dealer cannot collect tax. He issues a bill of supply, with the words 'composition taxable person, not eligible to collect tax on supplies' at the top.
Case (b): the supplies are taxable and exempt to the same recipient. Meera may issue a single invoice-cum-bill of supply instead of two documents.
Case (c): turnover of ₹6 crore is above the ₹5 crore limit. If Sunil is not in a notified exempt class, he must issue an e-invoice by reporting to the IRP and getting an IRN.
Case (d): the supplier is unregistered and Anil is liable to pay tax on the service under reverse charge. Under Section 31(3)(f) he issues an invoice in respect of the service received from the unregistered supplier, and under Section 31(3)(g) he issues a payment voucher at the time he pays the supplier.

Answer: (a) Bill of supply. (b) Invoice-cum-bill of supply. (c) E-invoice with IRN from the IRP. (d) Invoice for the service received from the unregistered supplier, plus a payment voucher at the time of payment.

Example 2

Pooja Consultants, registered, receives ₹1,18,000 (inclusive of GST at 18%) as an advance on 5 August for a consulting service. On 20 August the client cancels the contract and the full advance is returned. No tax invoice was issued. State the documents, the tax amount shown, and when they are issued.

Show the solution

Advance for a service is received, so a receipt voucher is issued at the time of receipt, that is on 5 August.
Taxable value: ₹1,18,000 ÷ 1.18 = ₹1,00,000.
Tax at 18%: ₹1,00,000 × 18% = ₹18,000. Check: ₹1,00,000 + ₹18,000 = ₹1,18,000.
The supply is not made and no tax invoice has been issued, so a refund voucher is needed when the advance is returned, that is on 20 August.
The refund voucher is issued against the earlier receipt voucher and shows ₹1,18,000 refunded, including tax of ₹18,000. The tax paid on the advance can then be adjusted.

Answer: Receipt voucher on 5 August for ₹1,18,000 (tax ₹18,000, taxable value ₹1,00,000). Refund voucher on 20 August for ₹1,18,000, issued against that receipt voucher.

Exam tips

In MCQs, read the supplier type first. Composition dealer or exempt supplier almost always points to a bill of supply.
For continuous supply questions, the examiner usually gives or hides the due date of payment. Decide which of the three service rules applies before answering.
For e-invoice questions, check three things: the turnover year, the ₹5 crore limit and whether the supplier is in an exempt class.
In descriptive answers, write the document name, the time of issue and a one-line reason. This earns step marks even if one detail is missed.
Do not cite rule numbers unless you are sure. A correct rule stated in plain words scores the same.

Practice questions from Tax Invoice; Credit and Debit Notes

Special Cases of Invoicing and Other Documents: frequently asked questions

What is the difference between a tax invoice and a bill of supply?

A tax invoice shows tax charged on a taxable supply by a registered person. A bill of supply is issued for exempt supplies or by a composition dealer, and it does not show any tax. The recipient cannot claim input tax credit on a bill of supply.

When is a receipt voucher issued and when is a refund voucher issued?

A receipt voucher is issued by the supplier when it receives an advance on which it is liable to pay tax (Section 31(3)(d)). Because of Notification 66/2017-CT, no tax is payable on an advance for goods, so a receipt voucher is mainly relevant for advances on services. A refund voucher is issued when that advance is returned because no supply was made and no tax invoice was issued (Section 31(3)(e)).

Who must issue an e-invoice under GST?

A registered person whose aggregate turnover in any preceding financial year from 2017-18 exceeds the notified limit, currently ₹5 crore, must do it. Certain notified classes such as SEZ units, insurers, banks and NBFCs are exempt. Always check the latest notification.

What is the invoice rule for continuous supply of goods and services?

For goods, the invoice is issued before or at the time each statement of account is issued or payment is received. For services, it depends on the contract: on or before the due date if known, at receipt of payment if the due date is not known, or on completion of the event if payment is linked to an event.

What is an invoice-cum-bill of supply?

It is a single document a registered person may issue when supplying both taxable and exempt goods or services to the same recipient. It saves issuing two separate documents.