Minimum invoice value

By Annapoorna

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Updated on: Oct 7th, 2021

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2 min read

Section 31 of the CGST Act mandates the issuance of an invoice for every supply of goods or services as an invoice serves as a very important document. It serves as evidence of the sale of goods or services. Also, a GST registered buyer can claim input tax credit only if he is in possession of a valid tax invoice.

What is the minimum value fixed to raise an invoice?

The minimum value fixed to raise an invoice is Rs.200 under the GST law. If the total value of multiple invoices is Rs.200 and the buyer is an unregistered party then the seller can issue a single invoice instead of multiple invoices on a daily basis.

What does the GST Law state about minimum invoice value?

The GST Law mentions the below situations for non-issuance of an invoice and minimum invoice value:

Minimum invoice value– Section 31(3)(b) of the CGST Act states that every registered taxpayer shall issue an invoice for each sale made. The minimum value set for raising an invoice is Rs.200. Thus, a seller may not issue an invoice if the value of supply is less than Rs.200 only if the below two conditions are met:

  1. The buyer is unregistered.
  2. The buyer doesn’t want the invoice.

Advance payments- A receipt is issued in case of advance payments done and if no supply is made on a future date then no tax invoice is required.

Notification 45/2017 Central tax dated 13th October 2017- If the registered supplier is supplying taxable as well as exempted supplies to an unregistered supplier then he may issue a single “invoice cum bill of supply” for such supplies.

What if the buyer asks for an invoice, is the seller liable to issue it?

All registered taxpayers are required to issue an invoice even if the value of supply is less than Rs.200 if the buyer insists on an invoice.

About the Author

I preach the words, “Learning never exhausts the mind.” An aspiring CA and a passionate content writer having 4+ years of hands-on experience in deciphering jargon in Indian GST, Income Tax, off late also into the much larger Indian finance ecosystem, I love curating content in various forms to the interest of tax professionals, and enterprises, both big and small. While not writing, you can catch me singing Shāstriya Sangeetha and tuning my violin ;). Read more

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Quick Summary

CGST Act mandates invoice issuance, minimum value set at Rs.200. Seller can issue single invoice if total is Rs.200 for unregistered buyer. Section 31(3)(b) outlines these provisions. Registered taxpayers must provide invoice if buyer demands, regardless of amount.

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