Section 31 - Time Limit for Issuance of Tax Invoice
# Tax Invoice — Time Limits for Issuance [Section 31 read with Rule 47]
## Why the Invoice Matters
An invoice is the commercial backbone of every transaction — it identifies parties, goods/services, quantity, price, taxes, and serves as evidence for both ITC and tax payment. Under GST, Section 31 mandates issuance of a tax invoice (or bill of supply, where applicable) for every supply.
## Time Limits at a Glance
### A. Taxable Supply of GOODS — Sec 31(1)
Issue invoice before or at the time of:
(a) Removal of goods — if supply involves movement, OR
(b) Delivery of goods / making them available to recipient — in any other case.
### B. Taxable Supply of SERVICES — Sec 31(2)
Issue invoice before or after provision of service, but within:
Supplier
Time Limit
Insurer / Banking Co. / FI / NBFC
45 days from date of supply of service
All others
30 days from date of supply of service
Special rule for insurer / banking co. / FI / NBFC / telecom operator (or any notified supplier) making inter-branch (distinct persons u/s 25) supplies of services:
Invoice may be issued by the earlier of:
Date of recording the supply in books of account, OR
Expiry of the quarter during which supply was made.
### C. Continuous Supply of GOODS — Sec 31(4)
Where successive statements or successive payments are involved, invoice must be issued before or at the time each statement is issued OR each payment is received.
> Continuous Supply of Goods — Section 2(32): Supply of goods provided/agreed to be provided continuously or on a recurrent basis under a contract — by wire, cable, pipeline or otherwise — for which the supplier invoices the recipient on a regular/periodic basis, plus any goods notified by Government.
### D. Continuous Supply of SERVICES — Sec 31(5)
Situation
Time Limit
Due date of payment is ascertainable from contract
On or before the due date of payment
Due date is not ascertainable
Before or at the time supplier receives payment
Payment linked to completion of an event
On or before the date of completion of the event
> Continuous Supply of Services — Section 2(33): Services provided/agreed to be provided continuously/recurrently under a contract for a period exceeding 3 months with periodic payment obligations, plus any services notified by Government.
### E. Services Ceasing Before Completion — Sec 31(6)
Invoice must be issued at the time supply ceases, only to the extent of supply already made.
### F. Goods Sent on Sale or Return Basis — Sec 31(7)
Invoice to be issued at EARLIER of:
(i) Before/at the time of supply, OR
(ii) 6 months from the date of removal.
Movement is permitted on a delivery challan + e-way bill; the invoice can be issued at the time of actual sale, and the person carrying the goods can carry an invoice book to issue it at the right time.
Worked example
### Example 1
Goods with Movement: A factory in Pune dispatches goods on 10-Aug to a buyer in Mumbai.
Answer: Invoice must be issued on or before 10-Aug (the date of removal) under Sec 31(1)(a).
### Example 2
Services by an NBFC: An NBFC supplies financial services on 15-Sep.
Answer: Invoice must be issued by 30-Oct (15-Sep + 45 days) under Sec 31(2).
### Example 3
Services by an Architect: Architectural services supplied on 5-July.
Answer: Invoice must be issued by 4-Aug (5-July + 30 days).
### Example 4
Continuous Supply of Services — Ascertainable Due Date: AMC contract specifies payment by the 10th of each month.
Answer: Invoice for each month must be issued on or before the 10th (the due date of payment).
### Example 5
Sale or Return: Goods sent on approval on 1-Jan-2025. Customer confirms purchase only on 1-Apr-2025.
Answer: Invoice on 1-Apr-2025 (date of supply), which is within 6 months of removal. If customer had not confirmed by 1-July-2025, invoice would have to be issued on 1-July-2025 (6-month limit).
⚠️ Common exam mistakes
Applying the 30-day service limit to NBFCs/banks/insurers — they get 45 days.
Treating continuous supply of services the same as ordinary services — the trigger is the due date of payment (or event completion), not 30 days from supply.
Missing the 6-month outer limit for goods sent on approval (sale or return).
Issuing invoice AFTER removal in case of goods involving movement — invoice must be on or BEFORE removal.
Forgetting that for continuous supply of goods, the invoice trigger is each statement or each payment.
Bare-Act text Section 31(1), (2), (4), (5), (6) & (7) · CGST Act, 2017 read with Rule 47, CGST Rules, 2017 · click to expand
Sec 31(1): A registered person supplying taxable goods shall issue a tax invoice, 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.
Sec 31(2): A registered person supplying taxable services shall issue a tax invoice, before or after provision of service but within a prescribed period.
Sec 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.
Sec 31(5): In case of continuous supply of services—
(a) where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment;
(b) where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time when the supplier receives the payment;
(c) where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that event.
Sec 31(6): In a case where the supply of services ceases under a contract before completion, the invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply made before such cessation.
Sec 31(7): Where goods are sent on approval for sale or return and 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.