Rule 54 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.
Some supplies do not fit the ordinary invoice. A bank issuing a statement, an airline issuing a ticket, a transporter issuing a consignment note — each has its own commercial document, and Rule 54 recognises them.
Rule 54(1): the ISD invoice or ISD credit note and its particulars. Rule 54(1A): the document by which an office of a supplier having the same PAN transfers credit of common input services to the ISD. Rule 54(2): an insurer, banking company, financial institution or NBFC may issue a document whether or not serially numbered, and whether or not containing the recipient's address. Rule 54(3): a goods transport agency must include specified particulars. Rule 54(4): a supplier of passenger transportation service may issue a ticket as the document.
Rule 54(1): the ISD invoice
An ISD invoice or ISD credit note must contain:
(a) name, address and GSTIN of the Input Service Distributor; (b) a consecutive serial number not exceeding sixteen characters, in one or multiple series, unique for a financial year; (c) date of issue; (d) name, address and GSTIN of the recipient to whom the credit is distributed; (e) amount of the credit distributed; and (f) signature or digital signature of the ISD or his authorised representative.
The proviso: where the ISD is an office of a banking company, financial institution or NBFC, the document may be issued in any form containing the information prescribed in clauses (a) to (f), whether or not serially numbered and whether or not containing the address of the recipient.
An ISD invoice is a prescribed document for credit under Rule 36(1)(e). Rule 36: which documents support a credit claim →
Rule 54(1A): the document that feeds the ISD
Inserted to make the mandatory ISD regime work.
(a) A registered person having the same PAN and State code as an Input Service Distributor may issue an invoice or, as the case may be, a credit or debit note to transfer the credit of common input services to the ISD, containing:
- name, address and GSTIN of the registered person having the same PAN and same State code as the ISD;
- a consecutive serial number not exceeding sixteen characters, unique for a financial year;
- date of issue;
- GSTIN of the supplier of common service and the original invoice number whose credit is to be transferred to the ISD;
- name, address and GSTIN of the ISD;
- taxable value, rate and amount of the credit to be transferred; and
- signature or digital signature.
(b) The taxable value in the invoice issued under clause (a) shall be the same as the value of the common services.
This is the document by which a location that received a common input service — including one on which it paid reverse charge — pushes the credit into the ISD for distribution. Section 21: recovery of excess ISD credit →
Rule 54(2): banks, insurers, financial institutions and NBFCs
"...the said supplier may issue a consolidated tax invoice or any other document in lieu thereof, by whatever name called, for the supply of services made during a month at the end of the month, whether issued or made available, physically or electronically, whether or not serially numbered, and whether or not containing the address of the recipient of taxable service but containing other information as prescribed under rule 46."
Three relaxations:
Consolidated monthly. One document for a month's services, rather than per transaction.
Not necessarily serially numbered. A bank statement carrying charges is acceptable.
Recipient's address not required.
Rule 54(2A) extends a similar relaxation to a registered person supplying services by way of admission to exhibition of cinematograph films in multiplex screens, who may issue an electronic ticket — and where an electronic ticket is issued, the requirement of the recipient's address does not apply.
Rule 54(3): goods transport agency
Where the supplier of taxable service is a goods transport agency supplying services in relation to transportation of goods by road in a goods carriage, the document, by whatever name called, must contain, in addition to the Rule 46 particulars:
- the gross weight of the consignment;
- name of the consigner and the consignee;
- registration number of the goods carriage in which the goods are transported;
- details of goods transported;
- details of place of origin and destination;
- GSTIN of the person liable for paying tax — whether as consigner, consignee or goods transport agency.
That last item is the one that matters most in practice, because a GTA supply is frequently under reverse charge, and the consignment note must identify who pays.
Rule 54(4): passenger transportation
"Where the supplier of taxable service is supplying passenger transportation service, a tax invoice shall include a ticket in any form, by whatever name called, whether or not serially numbered, and whether or not containing the address of the recipient of service but containing other information as prescribed under rule 46."
So an air ticket, a rail ticket or a bus ticket is the tax invoice. It need not be serially numbered and need not carry the passenger's address.
Rule 54(4A) provides that where the supplier is supplying passenger transportation service, the tax invoice includes a ticket in any form, and where the ticket is issued electronically, the signature requirement does not apply.
Key takeaways
- Rule 54(1): the ISD invoice and its six particulars — a prescribed credit document under Rule 36(1)(e).
- Rule 54(1A): the invoice by which a same-PAN, same-State office transfers common input service credit to the ISD, at the same taxable value as the common service.
- Rule 54(2): banks, insurers, financial institutions and NBFCs may issue a consolidated monthly document, not necessarily serially numbered, without the recipient's address.
- Rule 54(2A): multiplex operators may issue an electronic ticket.
- Rule 54(3): a GTA consignment note must identify the person liable to pay tax.
- Rule 54(4): a passenger ticket is the tax invoice.
Read next
- Rule 46: Every Particular a Tax Invoice Must Carry
- Input Service Distributor: Registration and ITC Distribution
- Rule 36: Which Documents Support a Credit Claim
- Goods Transport Agency: Forward and Reverse Charge
Disclaimer: Positions stated as on 5 September 2026, based on the CGST Rules as amended to 31 March 2026 (ICAI Bare Law, 12th edition) and the ICAI Handbook on Invoicing under GST (2025).