Time Limit for Issue of Tax Invoice – Goods [Section 31]
## Time Limit for Issue of Tax Invoice – Supply of Goods [Section 31 of CGST Act]
The invoice must be issued at or before specified events depending on the nature of supply.
### Rules
(A) Normal Supply of Goods:
Situation
Time Limit for Invoice
Supply involves movement of goods
At or before removal of goods
Other cases (no movement)
At or before delivery of goods / making available to the recipient
(B) Goods Sent on Approval (Sale or Return basis):
Invoice to be issued at the earlier of:
At the time goods are confirmed as supplied (acceptance by recipient), OR
6 months from removal, if no earlier acceptance.
(C) Continuous Supply of Goods:
Where successive statements of account or successive payments are involved -> Invoice on or before each such statement / payment.
### Practical Tip
Always identify the trigger event – is there movement? Is it on approval? Is it continuous?
Worked example
### Example 1
Example 1: ABC Ltd ships machinery from Mumbai to Delhi customer on 1 Aug.
Movement involved -> Invoice must be issued on or before 1 Aug (removal).
### Example 2
Example 2: Goods displayed in a showroom and sold to a walk-in customer without movement.
No movement -> Invoice on or before delivery (handover at counter).
### Example 3
Example 3: Goods sent on approval to a customer on 1 Jan. Customer confirms acceptance on 1 March.
Invoice issued on or before 1 March (acceptance). If no acceptance, latest by 1 July (6 months from removal).
### Example 4
Example 4 (Continuous supply): Monthly supply of industrial gas with statement issued on the 5th of every month.
Invoice on or before 5th of each month.
⚠️ Common exam mistakes
Issuing invoice after delivery in cases involving movement – incorrect; must be at/before removal.
Missing the 6-month outer limit for goods sent on approval – this is a hard limit.
Confusing 'movement' (delivery via transport) with 'delivery' (handover at one place).
Forgetting that successive payment / statement triggers the invoice in continuous supply.
Bare-Act text Section 31 · CGST Act, 2017 · click to expand
Section 31(1) of CGST Act, 2017 – A registered person supplying taxable goods shall, before or at the time of, – (a) removal of goods for supply to the recipient, where the supply involves movement of goods; or (b) delivery of goods or making available thereof to the recipient, in any other case, issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed. Section 31(7) – Notwithstanding anything contained in sub-section (1), where the goods being sent or taken on approval for sale or return are removed before the supply takes place, the invoice shall be issued before or at the time of supply or six months from the date of removal, whichever is earlier. Section 31(4) – In case of continuous supply of goods, where successive statements of accounts or successive payments are involved, the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such payment is received.