What Is a Commercial Invoice?

A commercial invoice is the main sales document of an export. It names the seller and buyer, describes the goods, gives quantity, unit price and total, and states the currency and delivery terms. Customs uses it to understand the shipment. The buyer's bank and customs authority abroad also use it. For GST, an invoice for export must carry specific wording and details, so the same document often serves as the GST tax invoice. Services exporters issue an invoice too, and the content follows the same GST rules.

For example, a furniture maker in Jodhpur ships to a buyer in the UK and issues an invoice with the goods description, quantity, price in GBP, delivery terms and the buyer's address. The invoice travels with the packing list and the shipping bill.

• Mandatory document: The Foreign Trade Policy lists the "Commercial Invoice cum Packing List" as a mandatory export document, with a note that a separate invoice and packing list are also accepted (FTP 2023, para 2.06).
• GST: For an export, the tax invoice must carry the endorsement the rule prescribes and, instead of clause (e) details, the recipient's name and address, the delivery address and the country of destination (CGST Rule 46).
• Services exports: Export of services is defined in IGST Act section 2(6). The invoice date also matters for the export declaration, as the EDF for services is due within 30 days of the end of the invoice month (Regulation 3(2)).
• Bank compliance: Banks may ask for the invoice to match a foreign receipt to an export. Realisation timelines are set in Regulation 5, and see your bank is asking for an invoice.
• Income tax: The invoice is the base record for the income you report. Ask a tax adviser how the foreign income is treated for your case.

The seller prepares the commercial invoice at or before dispatch of goods or delivery of services. The buyer, customs and banks then rely on it.

1. The seller confirms the order terms, price, currency and delivery terms with the buyer.
2. The seller prepares the invoice with parties, goods or services, quantity, price and terms.
3. For GST, the seller adds the export endorsement and the destination details required by Rule 46.
4. The invoice goes with the shipment documents for goods, or directly to the client for services.
5. The buyer pays against the invoice and the bank links the receipt to it.
6. The seller keeps the invoice with the shipping bill, EDF or other export records.

Prepare the commercial invoice from the order, using the buyer's full details, a clear description of goods or services and the price in an agreed currency. Check GST wording before issuing. A fuller field list is in export invoice format.

1. Write the seller's and buyer's full names and addresses.
2. Add an invoice number and date that follow your numbering series.
3. Describe the goods or services, quantity and unit price clearly.
4. State the currency, total and the delivery terms agreed with the buyer.
5. Add the GST export endorsement and destination country as Rule 46 requires.
6. Share the invoice with the buyer and keep a copy with the export file.

A commercial invoice is the final sales document for a completed sale, while a proforma invoice is issued before the sale is final. See proforma invoice for detail.

• Packing list: The commercial invoice and packing list can be one combined document or two, as the Foreign Trade Policy note allows.
• Services: Services exporters do not file a packing list, but they still issue an invoice.
• Currency: The invoice may be in a foreign currency. Check the bank's guidance on the currency and the rate for GST.
• Edits: An invoice changed after dispatch can create mismatches with bank and customs records. Check with your AD bank before correcting.

• Proforma invoice: A preliminary invoice issued before the sale is final.
• Shipping bill: The customs filing for goods leaving India.
• Airway bill: The transport document for air shipments.
• Bill of lading: The transport document for sea shipments.
• Incoterms: Trade terms stated on the invoice.

Every rule and definition on this page is linked to its official source, checked on the dates below.

1. Foreign Trade Policy 2023, Chapter 2 (DGFT revised version v1.2.2), Para 2.06 (mandatory export documents) and para 2.41 (checked 9 Oct 2026)
2. Central Goods and Services Tax Rules, 2017: Rule 46 (Tax invoice), Proviso on export endorsement, recipient, delivery address and country of destination (checked 9 Oct 2026)
3. Central Goods and Services Tax Rules, 2017: Rule 47 (Time limit for issuing tax invoice), Main rule (checked 9 Oct 2026)
4. Integrated Goods and Services Tax Act, 2017: Section 2 (Definitions), Clause (6), export of services (checked 9 Oct 2026)
5. FEMA (Export and Import of Goods and Services) Regulations, 2026, Notification FEMA 23(R)/2026-RB (amended up to 22 September 2026), Regulations 3(2) and 5 (checked 9 Oct 2026)