How to create a GST invoice in India

To create a GST invoice in India, you must prepare a tax invoice containing all mandatory fields specified under Rule 46. This includes your business details, your customer’s details, invoice number and date, GSTINs, HSN or SAC codes, taxable value, GST rates and amounts, and other particulars. This article explains why you need to know this, provides step-by-step instructions, an example with figures, common mistakes to avoid, and how HelloBooks can help you automate this process.

Why this comes up / what goes wrong

Many small business owners struggle with creating GST invoices because they are unsure of what details to include and how to calculate GST correctly. They often keep records in Excel, Tally, or manual bill books and spend hours trying to reconcile GST compliance with their sales. Missing or incorrect information can lead to GST filing errors, penalties, or delayed payments. Knowing the exact fields and format required for a GST invoice helps avoid these issues.

Step-by-step

1. Assign a unique invoice number: Create a consecutive serial number up to 16 characters (letters, numbers, ‘-’ or ‘/’) unique for your financial year.
2. Fill in supplier details: Include your business name, address, and GSTIN.
3. Fill in recipient details: Add your customer’s name, address, and GSTIN or UIN if registered.
4. Enter invoice date: Use the date when the invoice is issued.
5. List goods or services details:
   • Description of goods or services
   • Quantity and unit of measure
   • HSN code for goods or SAC code for services
6. Calculate taxable value: Total value of goods or services minus any discounts.
7. Apply GST rates:
   • Use CGST and SGST for intra-state supplies
   • Use IGST for inter-state supplies
   • Mention the applicable rates and calculate tax amounts accordingly
8. Show total tax amount: Sum of CGST and SGST or IGST amounts.
9. Mention place of supply: State name for inter-state supplies.
10. Include delivery address: If different from place of supply.
11. Specify reverse charge applicability: Indicate if tax is payable on reverse charge.
12. Sign the invoice: Signature or digital signature of supplier or authorised representative.

Check all fields carefully to ensure compliance with Rule 46 particulars [cgst-rule-46/rule46-particulars].

Example (fictional figures)

Date: 10/06/2024

A Delhi-based supplier sells 10 units of electronic goods to a Mumbai-based registered customer.

• Supplier: ABC Electronics, Delhi, GSTIN 07ABCDE1234F1Z5
• Recipient: XYZ Traders, Mumbai, GSTIN 27XYZDE5678K1Z2
• Invoice number: INV2024/001
• HSN code: 8517 (Assumed illustrative code for electronic goods)
• Unit price: ₹5,000
• Quantity: 10
• Total value (before tax): ₹5,000 × 10 = ₹50,000
• GST rate: 18% (assumed illustrative rate)

Calculations:

Taxable value = ₹50,000
CGST = ₹50,000 × 9% = ₹4,500
SGST = ₹50,000 × 9% = ₹4,500
Total GST = ₹4,500 + ₹4,500 = ₹9,000
Invoice total = ₹50,000 + ₹9,000 = ₹59,000

The invoice must show:

• Supplier and recipient details with GSTINs
• Invoice number and date
• Description, quantity, unit, HSN
• Taxable value
• CGST and SGST rates and amounts
• Total invoice value
• Place of supply: Maharashtra (recipient’s state)
• Signature

Common mistakes

1. Incorrect or missing GSTINs: Always verify GSTINs from your customer and yourself to avoid filing errors.
2. Non-unique or inconsistent invoice numbers: Use a clear, consecutive numbering system unique for each financial year.
3. Wrong GST rate application: Confirm the correct GST rate for your goods or services using the HSN or SAC codes.
4. Omitting mandatory fields: Ensure all Rule 46 particulars are included to avoid rejection during GST filing.
5. Ignoring place of supply rules: Properly identify intra- or inter-state supply to apply CGST/SGST or IGST correctly.
6. No signature or digital signature: Sign the invoice or use a digital signature to validate it.

Using accounting software in India can help minimize these errors.

Doing this in HelloBooks

HelloBooks provides GST invoicing that creates compliant tax invoices with the correct CGST/SGST or IGST split and HSN/SAC codes automatically filled from the customer’s GSTIN, ensuring all Rule 46 fields are consistent. For businesses with turnover above ₹5 crore, HelloBooks supports e-invoicing by generating the Invoice Reference Number (IRN) and signed QR on the NIC portal when you save a B2B invoice. It also builds GSTR-1 and GSTR-3B returns directly from your recorded invoices, ensuring your returns match your issued invoices without manual data entry. Learn more at GST invoicing.

Frequently asked questions

How to make a GST bill?
Follow the steps to include all mandatory fields: supplier and recipient details with GSTIN, invoice number, date, HSN/SAC codes, taxable value, GST rates, and tax amounts. Calculate CGST/SGST for intra-state or IGST for inter-state supplies and sign the invoice.

How to make a GST invoice in Tally or Excel?
In Tally or Excel, create a template that includes all Rule 46 fields. Manually enter invoice numbers, dates, GSTINs, HSN/SAC codes, and calculate GST tax amounts correctly. Regularly check for errors and maintain unique invoice numbering.

What is the difference between a GST invoice and a regular invoice?
A GST invoice must include GSTINs, HSN/SAC codes, GST rates, tax amounts, and comply with Rule 46. A regular invoice may lack these details and is not valid for claiming input tax credit.

Can I create a GST invoice without software?
Yes, you can create GST invoices manually using Excel or bill books by including all mandatory fields and calculating GST correctly. However, software like HelloBooks reduces errors and saves time.

When is e-invoicing mandatory?
E-invoicing is mandatory for registered persons whose aggregate turnover exceeded ₹5 crore in any financial year from 2017-18 onwards, effective from 1 August 2023 [einvoice-threshold-5cr/einv-5cr-from-2023-08-01].

How to file GSTR-1 and GSTR-3B returns?
GSTR-1 (outward supplies) is due on the 11th day of the month following the tax period, and GSTR-3B (summary and payment) is due by the 20th day [gstr1-due-date/gstr1-monthly-11th], [gstr3b-due-date/gstr3b-monthly-20th]. Using software that links invoices to returns can simplify filing.

Key takeaways

• GST invoices must include all particulars listed under Rule 46, including GSTINs, invoice number, date, HSN/SAC codes, taxable value, and tax amounts.
• Use a unique, consecutive invoice numbering system for each financial year.
• Apply the correct GST rates and split between CGST/SGST or IGST based on place of supply.
• Avoid common mistakes by verifying GSTINs, applying correct rates, and including all mandatory fields.
• E-invoicing is mandatory for businesses with turnover above ₹5 crore from 1 August 2023.
• HelloBooks automates GST invoicing, e-invoicing, and GST return filing, reducing errors and saving time.

Start creating compliant GST invoices today with HelloBooks. Start on the Free plan (200 transactions a year, GSTR-1 and 3B filing for one GSTIN).

This article is general information, not tax or legal advice. Rules change; confirm the current position on gst.gov.in or with your chartered accountant before acting.