How to create a GST invoice in India

A good GST invoice does two jobs: it asks your customer for payment and creates a clean tax record. Use this guide as a final check before sending an invoice.

1. First, confirm the right document

A GST-registered person making a taxable supply generally issues a tax invoice. A registered person supplying exempt goods or services, or paying tax under the composition scheme, generally issues a bill of supply instead. An unregistered business should not collect GST or present its document as a GST tax invoice.

2. Collect the details: GST invoice checklist

Rule 46 of the CGST Rules lists the particulars a tax invoice should contain. For a typical small-business invoice, check these items:

• Your legal business name, address and GSTIN
• A unique, consecutive invoice number for the financial year
• The invoice date
• Your customer’s name, address and GSTIN or UIN when registered
• The HSN code for goods or SAC for services, where applicable
• A clear description and, for goods, quantity and unit
• Total value, discounts and taxable value
• The applicable GST rate and tax amount
• Separate CGST and SGST/UTGST, or IGST, as applicable
• Place of supply and state name for an inter-state supply
• Delivery address when it differs from the place of supply
• Whether reverse charge applies
• Your signature or digital signature, where required

Have these details ready? Enter them in the free GST invoice generator to calculate the totals and tax split, and preview the document before you issue it.

3. Choose a clear invoice number and date

Under Rule 46, the consecutive serial number must not exceed 16 characters and must be unique for the financial year. Letters, numbers, hyphens and slashes are allowed. For example, INV/2026-27/001 has 14 characters. Preserve your numbering sequence and an audit trail for cancelled or corrected documents.

Check timing and e-invoice requirements

For goods, an invoice is generally issued before or at removal where movement is involved, or delivery/making available in other cases. For services, the general Rule 47 period is 30 days from supply, with exceptions. Continuous supplies and other special cases need separate checks.

A PDF invoice and an e-invoice registered through the prescribed system are not the same thing. Before invoicing, check whether e-invoicing applies to your business and transaction under current notifications. This introductory checklist does not determine that applicability.

4. Describe the work and agree payment terms

Use a description your customer can connect to the agreed work. For example, “Website development — final milestone under the agreed proposal” gives more context than “Professional fees.” Add the service period or milestone where relevant, and keep the agreement with your records.

Enter the agreed price and any discount before calculating tax. Include the payment deadline and verified payment instructions so your customer knows when and how to pay. These practical payment details supplement the invoice particulars above.

Still agreeing the scope or price? Read quotation vs proforma vs tax invoice, or prepare a preliminary document with the free proforma generator.

5. Apply the correct tax split and check the total

For a typical intra-state supply, show CGST and SGST (or UTGST) separately. For an inter-state supply, show IGST. The decision depends on the supplier location and the legally determined place of supply—not simply where the customer happens to be when ordering.

A worked service-invoice example

Assume a regular GST-registered service business has agreed a fee of ₹25,000 before tax. For this illustration only, assume the applicable rate has been confirmed as 18% and the supply is intra-state, with CGST and SGST applicable. This is an arithmetic example, not a complete invoice or a recommended rate for every service.

For an inter-state supply at the same assumed rate, the illustration would instead show ₹4,500 IGST, with the same ₹29,500 total. Use the GST calculator to check arithmetic after confirming the rate and place of supply.

6. Run five checks before saving and sending

1. Match the customer name and GSTIN with the details they supplied.
2. Confirm the place of supply and whether the transaction is intra-state or inter-state.
3. Check the taxable value, rate and arithmetic.
4. Confirm the invoice number has not already been used.
5. Save the final invoice and supporting record in a searchable location.

Preview the final PDF for readable descriptions, complete details and correct totals. Send it to the agreed billing contact with the invoice reference, payment deadline and a short description of the work. Keep the issued version and the message together.

7. Record payments and follow up on the balance

Keep the original invoice total separate from the money received. For the ₹29,500 example, a first receipt of ₹10,000 leaves ₹19,500 outstanding. A second receipt of ₹5,000 brings total receipts to ₹15,000 and leaves ₹14,500 outstanding.

1. Record each receipt's date, amount, payment method and reference against the invoice.
2. Check that the payment has actually arrived before updating the balance.
3. Review deductions, credit notes, refunds or other adjustments separately; do not record them as cash receipts.
4. If the agreed deadline has passed, confirm the remaining balance and send a reminder.

Try the free invoice payment tracker for a simple collection list, then use the payment reminder generator to prepare a message. The tracker does not verify bank receipts or account for adjustments; its entries are lost on refresh, so export your work before leaving.

For a detailed example, read how to track partial invoice payments. At month-end, use the monthly records checklist to prepare invoices, payment references and questions for your CA.

Official references

Download the editable invoice preparation worksheet to organise the required information before you issue an invoice.

Check Rule 46 on CBIC’s tax information portal for invoice particulars. See CBIC's consolidated rules, including Rules 46 and 47, together with subsequent amendments. Use the GST calculator to check arithmetic after confirming the applicable rate.

Read the CBIC invoice rules and CBIC sectoral FAQs for the underlying requirements and special cases.

Frequently asked questions

Next: Understand CGST, SGST and IGST in plain English