If your business is registered under GST, you are required to issue GST tax invoices for taxable supplies. This guide explains what a GST invoice should contain and how to create one — practically, for small businesses.
Who Needs to Issue a GST Invoice?
Businesses and individuals registered under GST must issue a tax invoice for every taxable supply of goods or services. If you are not GST-registered, you cannot charge GST and should not issue a GST tax invoice.
GST registration is generally required when your annual turnover exceeds ₹20 lakh (₹10 lakh for special category states). Verify the current threshold, as it may change.
What a GST Invoice Must Include
A valid GST tax invoice generally includes:
- The word "Tax Invoice" prominently displayed
- Your GSTIN (GST Identification Number)
- Your business name and address
- Invoice number (consecutive, within a financial year)
- Invoice date
- Customer's name, address and GSTIN (for B2B supplies)
- Description of goods or services supplied
- HSN code (for goods) or SAC code (for services)
- Quantity and unit of goods
- Taxable value per item
- GST rate (CGST + SGST for intra-state, or IGST for inter-state)
- Tax amount in rupees
- Place of supply (state)
- Total amount in rupees (including tax)
- Whether the tax is payable on a reverse charge basis
CGST, SGST and IGST — What Are They?
Intra-state supply (same state)
When the supplier and customer are in the same state, the GST is split into two equal parts: CGST (Central GST) and SGST (State GST). For an 18% GST rate, you would charge 9% CGST and 9% SGST.
Inter-state supply (different states)
When the supplier and customer are in different states, the entire GST amount is charged as IGST (Integrated GST). For 18%, you charge 18% IGST.
Service: Web Design — ₹50,000
GST Rate: 18%
Intra-state: CGST 9% = ₹4,500 + SGST 9% = ₹4,500 → Total: ₹59,000
Inter-state: IGST 18% = ₹9,000 → Total: ₹59,000
HSN and SAC Codes
HSN (Harmonised System of Nomenclature) codes classify goods. SAC (Services Accounting Code) codes classify services. Your invoice must include the appropriate code for what you are supplying.
You can find HSN/SAC codes on the GST portal or by consulting your accountant.
Creating a GST Invoice with InvoiceLelo
InvoiceLelo lets you add your GSTIN to your business information, add a GST percentage to each line item and calculate the tax amount automatically. You can then download the invoice as a PDF.
Note that InvoiceLelo is an invoice creation tool — it does not file GST returns or interact with the GST portal.
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