What are the mandatory fields in a GST invoice?

Mandatory fields include: supplier name, address, and GSTIN; invoice number and date; buyer details and GSTIN (if registered); item descriptions with HSN/SAC codes; quantities and rates; tax rates (CGST, SGST, IGST); tax amounts; and total invoice value.

What is the difference between CGST, SGST, and IGST?

CGST (Central GST) and SGST (State GST) apply to intra-state supplies, each at half the total GST rate. IGST (Integrated GST) applies to inter-state supplies at the full GST rate. For example, 18% GST on intra-state becomes 9% CGST + 9% SGST, while inter-state has 18% IGST.

Can I create GST invoices manually?

Yes, you can create GST invoices manually, but it's time-consuming and error-prone. Using GST invoice maker software ensures compliance, reduces errors, automates calculations, and provides professional templates. It's recommended for businesses generating multiple invoices.

What are the GST rates in India?

Common GST rates are 0%, 5%, 12%, 18%, and 28%. Some items may have special rates. The rate depends on the type of goods or services. It's important to use the correct HSN/SAC code to determine the applicable GST rate.

Do I need to register for GST to create invoices?

Yes, you need to be registered under GST to issue GST invoices. However, unregistered businesses can issue bills of supply for exempt supplies or when turnover is below the registration threshold. GST registration is mandatory for businesses with turnover exceeding specified limits.

GST Invoice Maker: Create Compliant GST Invoices Online

Introduction to GST Invoice

A GST invoice is a crucial document for businesses operating in India. It serves as proof of supply, enables input tax credit claims, and ensures compliance with GST regulations. Creating compliant GST invoices is essential for smooth business operations and tax compliance.

This guide will help you understand GST invoice requirements, how to create compliant invoices, and best practices for invoice management.

What is a GST Invoice?

A GST invoice is a tax invoice issued by a registered GST supplier that contains all mandatory details as prescribed under GST rules. It differs from regular invoices by including specific GST-related information like GSTINs, HSN/SAC codes, and tax breakdowns.

GST invoices are required for all taxable supplies and serve multiple purposes:

Proof of supply of goods or services
Basis for input tax credit claims
Compliance with GST regulations
Record-keeping for audits
Supporting document for returns filing

Types of GST Invoices

Tax Invoice

A tax invoice is issued for taxable supplies. It contains all mandatory details and enables the recipient to claim input tax credit.

Bill of Supply

A bill of supply is issued for exempt supplies or when the supplier is not eligible to collect tax. It doesn't include tax amounts.

Receipt Voucher

Issued when advance payment is received, before the supply of goods or services.

Refund Voucher

Issued when advance payment is refunded without supply of goods or services.

Mandatory Fields in GST Invoice

Supplier Details

Supplier name
Supplier address
Supplier GSTIN
Place of supply

Invoice Details

Invoice number (unique and sequential)
Invoice date
Due date (if applicable)

Buyer Details

Buyer name
Buyer address
Buyer GSTIN (if registered)
Place of supply

Item Details

Item description
HSN/SAC code
Quantity
Unit of measurement
Rate per unit
Taxable value
Discount (if any)

Tax Details

CGST rate and amount (for intra-state)
SGST rate and amount (for intra-state)
IGST rate and amount (for inter-state)
Total tax amount

Total Amount

Subtotal
Total tax
Grand total
Amount in words

Understanding GST Rates

Common GST Rates

0%: Essential goods like food grains, milk, etc.
5%: Essential items like medicines, food items
12%: Processed foods, computers, mobile phones
18%: Most goods and services fall in this category
28%: Luxury items, sin goods, automobiles

CGST, SGST, and IGST

Intra-State Supply: When supplier and buyer are in the same state, GST is split into CGST and SGST, each at half the total rate. For example, 18% GST becomes 9% CGST + 9% SGST.

Inter-State Supply: When supplier and buyer are in different states, IGST is charged at the full rate. For example, 18% IGST applies.

How to Create GST Invoice

Step 1: Gather Information

Collect all necessary information including supplier details, buyer details, item descriptions, quantities, rates, and applicable GST rates.

Step 2: Determine GST Applicability

Identify whether the supply is intra-state or inter-state to determine if CGST+SGST or IGST applies. Also verify the correct GST rate based on HSN/SAC code.

Step 3: Calculate Taxes

Calculate taxable value, apply GST rate, and compute CGST, SGST, or IGST amounts. Ensure calculations are accurate to avoid compliance issues.

Step 4: Create Invoice

Use GST invoice maker software or create manually, ensuring all mandatory fields are included and formatted correctly.

Step 5: Review and Issue

Review the invoice for accuracy, ensure all mandatory fields are present, verify calculations, and then issue to the customer.

Benefits of Using GST Invoice Maker

1. Compliance Assurance

GST invoice makers ensure all mandatory fields are included and formats comply with GST rules, reducing the risk of non-compliance.

2. Automatic Calculations

Software automatically calculates taxes, totals, and amounts in words, eliminating calculation errors.

3. Time Savings

Automated invoice generation saves significant time compared to manual creation, especially for businesses generating multiple invoices.

4. Professional Templates

Invoice makers provide professional templates that enhance your business image and ensure consistency.

5. Record Management

Digital invoice management makes it easy to store, search, and retrieve invoices for audits and reference.

6. Integration Capabilities

Many invoice makers integrate with accounting software, enabling seamless data flow and reducing duplicate entry.

GST Invoice Format

While there's no prescribed format, GST invoices must include all mandatory fields. A typical GST invoice includes:

Header with company logo and details
Invoice number and date
Supplier and buyer details
Itemized list with HSN codes
Tax breakdown
Total amounts
Terms and conditions
Authorized signature

HSN and SAC Codes

HSN (Harmonized System of Nomenclature) codes are used for goods, while SAC (Services Accounting Code) codes are used for services. These codes are essential for:

Determining GST rates
Filing GST returns
E-invoice generation
E-way bill generation

Businesses with turnover up to ₹5 crores can use 4-digit HSN codes, while those above ₹5 crores must use 6-digit codes. Exporters must use 8-digit codes.

Best Practices for GST Invoices

Sequential Numbering: Use sequential invoice numbers without gaps to avoid compliance issues
Timely Issuance: Issue invoices within the prescribed time limits (before or at the time of supply)
Accurate Details: Ensure all details are accurate, especially GSTINs and HSN codes
Proper Classification: Use correct HSN/SAC codes to ensure proper tax calculation
Record Keeping: Maintain proper records of all invoices for audits and compliance
Digital Storage: Store invoices digitally for easy access and retrieval

Common Mistakes to Avoid

Missing mandatory fields
Incorrect GSTINs
Wrong HSN/SAC codes
Calculation errors
Missing or incorrect tax rates
Non-sequential invoice numbers
Issuing invoices after due date

GST Invoice and E-Invoice

For businesses required to generate e-invoices, GST invoices must be uploaded to the Invoice Registration Portal (IRP) to obtain IRN. The e-invoice system validates GST invoices and generates IRN and QR code.

E-invoices are essentially GST invoices that have been authenticated by the IRP, ensuring real-time tracking and compliance.

Conclusion

Creating compliant GST invoices is essential for businesses operating in India. Understanding GST invoice requirements, mandatory fields, tax rates, and best practices ensures smooth operations and compliance.

Using GST invoice maker software simplifies the process, reduces errors, and ensures compliance. Whether you're a small business or large enterprise, proper GST invoice management is crucial for success.

Ready to create GST-compliant invoices? Sign up for eInvoice and start creating professional GST invoices today.