What is a Tax Invoice?

All taxpayers need to pay the tax invoice to their customers, which is mandatory for every registered supplier who trades goods and services. 

A Tax invoice includes the following details: goods sold, quantity, taxes charged, and the value of tax. It is the only evidence through which a customer taxpayer can claim a tax credit. 

What are the Details Contained in a Tax Invoice? 

A Tax invoice contains the following details:  

• Name and contact details of the supplier. 
• Name of the customer with contact number. 
• Tax invoice number. 
• Details of the goods sold. 
• Date of the tax invoice issuance. 
• GSTIN and PAN of the supplier and the customer. 
• Location of the goods supply. 
• Tax rate, tax amount, and HSN code. 
• The amount of discount given 
• RCM applicability. 
• Signature of the supplier or their valid authorised representative.

Why is it Essential to have a Tax Invoice?

Tax invoices are essential for the customer. It is a valid and legal evidence for the supply of goods and services. You should get your tax invoice at the time of the supply and registration of the goods, and a tax invoice should be given by all the registered GST taxpayers. From the buyer's point of view, a tax invoice I valid to claim the tax credit on the purchase of the goods and services for many financial reporting purposes.