Rule 36: Which Documents Actually Support a Credit Claim

Rule 36 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

Section 16(2)(a) requires possession of "a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed."

Rule 36 prescribes them, and the list is shorter than most purchase ledgers assume.

Credit may be availed on the basis of: (a) an invoice issued by the supplier under s.31; (b) an invoice issued in accordance with s.31(3)(f) — the self-invoice for reverse charge — subject to payment of the tax; (c) a debit note issued by a supplier under s.34; (d) a bill of entry or similar document prescribed under the Customs Act; (e) an ISD invoice or ISD credit note or any document issued by an Input Service Distributor under Rule 54. Rule 36(2) requires the document to carry the prescribed particulars, with a relaxation for a minimum set.

The five documents

Supplier's tax invoice. The ordinary case. Must comply with Rule 46.

Self-invoice under s.31(3)(f). For a supply from an unregistered supplier on which the recipient pays under reverse charge. Rule 36(1)(b) adds a condition not present elsewhere: "subject to the payment of tax". Credit follows the payment, not the invoice.

Debit note under s.34. Since the Finance Act, 2020 amendment to s.16(4), it stands on its own financial year. The ITC time limit →

Bill of entry. Or any similar document prescribed under the Customs Act or Rules for the assessment of integrated tax on imports. This is the only document for imported goods — GSTR-2B carries the ICEGATE data, but the bill of entry is the document.

ISD invoice or ISD credit note under Rule 54(1), or any document issued by an Input Service Distributor in accordance with Rule 54(1A).

Rule 36(2): particulars, and the relaxation

Credit shall be availed only if all the applicable particulars as specified in Chapter VI are contained in the said document, and the relevant information as contained in the said document is furnished in FORM GSTR-2 by the registered person.

Then the proviso, which is what practitioners actually use:

"Provided that if the said document does not contain all the specified particulars but contains the details of the amount of tax charged, description of goods or services, total value of supply of goods or services or both, GSTIN of the supplier and recipient and place of supply in case of inter-State supply, input tax credit may be availed by such registered person."

So a document missing, say, the HSN code, the serial number format, or the address does not by itself defeat the credit, provided it carries those six essentials:

1. amount of tax charged
2. description of goods or services
3. total value of supply
4. GSTIN of the supplier
5. GSTIN of the recipient
6. place of supply, for an inter-State supply

This proviso is the answer to a large proportion of documentation-based credit denials.

Rule 36(3) and 36(4)

Rule 36(3): no credit shall be availed on a tax paid in pursuance of any order where any demand has been confirmed on account of any fraud, wilful misstatement or suppression of facts. So tax paid under a s.74 or s.74A(fraud limb) order does not generate credit for the recipient.

Rule 36(4) — the provisional credit cap, which restricted credit to a percentage of the credit reflected in GSTR-2A. It ran through 20%, 10% and 5% before being rendered redundant by s.16(2)(aa), which made the GSTR-1 reporting condition statutory from 01.01.2022. The rule has since been omitted. Credit is now limited to what appears in GSTR-2B, by force of the Act rather than the rule.

The e-invoice trap: Rule 48(5)

"Every invoice issued by a person to whom sub-rule (4) applies in any manner other than the manner specified in the said sub-rule shall not be treated as an invoice."

Sub-rule (4) is the e-invoicing requirement. So where a supplier is covered by e-invoicing and issues an invoice without generating an IRN, that document is not an invoice at all.

The consequence for the recipient is severe: s.16(2)(a) requires possession of an invoice, and there is none. The credit fails — not on a technicality about particulars, but because the foundational document does not exist.

Practical response: verify e-invoice applicability for your suppliers and check for the IRN and signed QR code on invoices from covered suppliers. The IRN can be validated on the e-invoice portal.

Documents that do not support credit

• a proforma invoice or a quotation;
• a bill of supply — issued for exempt supplies and by composition dealers, carrying no tax;
• a delivery challan — a movement document, not a tax document;
• a payment voucher under s.31(3)(g) — evidences payment to an unregistered supplier, not the tax;
• a receipt voucher — evidences an advance;
• a financial or commercial credit note — no GST effect;
• a supplier's statement or ledger confirmation;
• an invoice from a composition dealer, which carries no tax to credit.

Key takeaways

• Five prescribed documents: supplier's invoice, self-invoice for RCM, debit note, bill of entry, ISD invoice or credit note.
• The self-invoice route is subject to payment of the tax.
• Rule 36(2) proviso: six essential particulars suffice — tax amount, description, value, both GSTINs, and place of supply for inter-State.
• Rule 36(3): no credit on tax paid under a fraud-based demand order.
• Rule 36(4) is omitted; s.16(2)(aa) and GSTR-2B govern.
• Rule 48(5): an invoice from an e-invoicing supplier without an IRN is not an invoice.

Read next

• Four Conditions for Claiming ITC Under Section 16(2)
• E-Invoice Under GST: Applicability and Generation
• Self-Invoice for Reverse Charge Purchases
• ITC Matching: How GSTR-2B Auto-Populated Credit Works

Disclaimer: Positions stated as on 5 September 2026, based on the CGST Rules as amended to 31 March 2026 (ICAI Bare Law, 12th edition).