Guides · Invoicing
Types of business invoices
A business issues more than one kind of invoice, and each has a purpose. Knowing which document fits which moment keeps your records — and your GST — clean.
Tax invoice and bill of supply
A tax invoice is issued for a taxable supply by a GST-registered business; it charges GST and lets the buyer claim input tax credit. A bill of supply is issued for exempt supplies and by composition dealers, who cannot charge GST separately, so it shows no tax.
These two are the core GST documents: the tax invoice for taxable sales, the bill of supply where no GST is charged.
Proforma invoice and others
A proforma invoice is a quotation in invoice form — it sets out what a supply would cost before it is confirmed, and it is not a demand for payment. A credit note and a debit note adjust an issued invoice down or up. A delivery challan moves goods where no tax invoice is raised yet.
Choosing the right document matters because only a tax invoice supports input tax credit; a proforma does not.
How Lekha issues invoices
Lekha generates GST-compliant delivery challans and tax invoices against a purchase order, with HSN, place of supply, and the right CGST/SGST or IGST split computed live, and gap-free financial-year numbering.
The records for both sides — sales invoices you raise and supplier bills you receive — sit in one ledger, so the paperwork and the money stay together.
Questions
- What is the difference between a proforma invoice and a tax invoice?
- A proforma invoice is a pre-sale quotation in invoice form and is not a payment demand or a tax document. A tax invoice records a completed taxable supply and charges GST.
- When do I issue a bill of supply?
- For exempt supplies and as a composition-scheme dealer, where GST is not charged separately. It replaces the tax invoice in those cases.
- Can I claim input tax credit on a proforma invoice?
- No. Input tax credit is claimed on a valid tax invoice, not on a proforma invoice, which is only a quotation.
This guide is general information, not legal or tax advice. Confirm the current rules and your own circumstances for any specific case.