A lot of small businesses treat “invoice” and “receipt” as interchangeable \u2014 send the invoice, get paid, done. But they serve different purposes, and for GST-registered businesses, using the right one at the right time actually matters.<\/p>\n
An invoice is issued before or at the time of<\/strong> supplying goods or services. It states what was delivered, the amount owed, applicable GST, and the due date. It’s a demand for payment \u2014 proof that a transaction happened and money is owed, not proof that money changed hands.<\/p>\n A payment receipt is issued after<\/strong> you’ve actually received payment. It confirms the amount received, the date, and the mode of payment (UPI, NEFT, cheque, cash). Where an invoice says “you owe this,” a receipt says “you paid this, and here’s confirmation.”<\/p>\n For clients \u2014 especially larger companies or CAs doing their books \u2014 a receipt is often what they file away as proof of payment, separate from the invoice that triggered it.<\/p>\nThe Receipt: Proof That Payment Happened<\/h2>\n
When You Specifically Need One<\/h2>\n
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A Quick Way to Keep the Two Straight<\/h2>\n