How to Create a GST-Compliant Invoice in India

Creating a GST-compliant invoice is a fundamental requirement for any GST-registered business in India. A properly prepared invoice not only ensures tax compliance but also prevents disputes and speeds up payments.

In this guide, you’ll learn:

• The mandatory fields in a GST invoice
• The difference between a tax invoice and a bill of supply
• Best practices for GST billing

1. What Is a GST Invoice?

A GST invoice is a legal document issued by a seller to a buyer that records the details of a taxable supply of goods or services.
It serves as evidence of the transaction and forms the basis for claiming input tax credit (ITC) under GST.

2. Mandatory Details in a GST Invoice

As per Rule 46 of the CGST Rules, a GST invoice must include:

1. Supplier Details

   • Name, address, and GSTIN

2. Invoice Details

   • Unique serial number (consecutive, not altered)
   • Date of issue

3. Recipient Details

   • Name, address, and GSTIN (if registered)
   • State name and code

4. Goods/Services Details

   • HSN code (goods) or SAC code (services)
   • Description of goods/services
   • Quantity and unit
   • Total value

5. Tax Details

   • Taxable value
   • GST rate (CGST, SGST/UTGST, IGST)
   • Amount of tax

6. Other Requirements

   • Place of supply (for interstate transactions)
   • Signature or digital signature of supplier

3. Tax Invoice vs Bill of Supply

4. GST Invoice Format (Example)

Here’s a basic GST invoice template:

5. Best Practices for GST Billing

• Use billing software that automatically formats invoices per GST rules (BillSaathi GST Billing Software)
• Maintain consecutive invoice numbering for each financial year
• Ensure HSN/SAC codes are correct as per turnover requirements
• Keep digital backups of all invoices for 6 years

FAQ: GST-Compliant Invoices

Q1. Can I issue a handwritten GST invoice?
Yes, as long as it contains all mandatory details and is legible.

Q2. How many copies of a GST invoice are required?
For goods: 3 copies (Original for buyer, Duplicate for transporter, Triplicate for supplier).
For services: 2 copies (Original for buyer, Duplicate for supplier).

Q3. Do I need to mention e-invoice details?
If your business is covered under e-invoicing mandate, the invoice must carry the IRN (Invoice Reference Number) and QR code.

External References:

• CBIC – GST Invoice Rules
• GST E-Invoicing Portal