GST Invoice Format in India: What a Tax Invoice Must Include
The details a GST tax invoice usually carries, how B2B and B2C invoices differ, how the CGST, SGST and IGST split works, and the mistakes that cause trouble later.
Every registered business that sells goods or services has to issue an invoice, and getting the GST invoice format in India right protects both you and your buyer. A wrong or incomplete invoice can hold up your customer’s input tax credit and leave you correcting records later. This guide covers the details a tax invoice commonly carries, how B2B and B2C invoices differ, and the mistakes shops make most often.
The GST invoice format in India, field by field
The GST rules list the particulars of a tax invoice. In plain terms, a typical invoice carries these parts:
- Supplier details: your name, address and GSTIN, with the heading “Tax Invoice”.
- Invoice number: unique and in a running series, with no duplicates. The permitted length is limited, so check the current rule, and ask how to run separate series for separate branches.
- Date of issue.
- Buyer details: name, address and GSTIN if the buyer is registered. For an unregistered buyer, name, address and state are needed in some cases, depending on the invoice value.
- Place of supply and state code, which decide whether the tax is CGST and SGST, or IGST.
- Description of goods or services, with the HSN code for goods or the SAC for services.
- Quantity, unit and rate for each line.
- Discount, if any, and the taxable value after the discount.
- Tax rate and tax amount, shown separately as CGST, SGST or IGST, and cess where it applies.
- Total invoice value, in figures and usually in words as well.
- Reverse charge note, if the buyer pays the tax under reverse charge.
- Signature or digital signature of the supplier or an authorised person.
Tax invoice or bill of supply?
Not every bill is a tax invoice. A business under the composition scheme, or one that sells only exempt goods, issues a bill of supply instead and does not charge GST on it. Using the wrong document is a common mistake, so confirm which one applies to you before you set up your invoice layout.
B2B and B2C invoices: what changes
Selling to a registered business
Put the buyer’s GSTIN on the invoice and check it twice. Your buyer claims input tax credit based on what you issue, so a wrong GSTIN or a wrong tax split creates a problem for them, and a phone call for you.
Selling to walk-in customers
For customers without a GSTIN the invoice is simpler, but you still show your own details, the item descriptions and the tax. Many shops price at MRP with tax included. The invoice should still break the amount into taxable value and tax, so the numbers add up to what you report.
How the CGST, SGST and IGST split works
If you and the buyer are in the same state, the tax is split equally into CGST and SGST. If the sale crosses a state border, the full tax shows as IGST. Place of supply drives this, so capture the buyer’s state properly on every B2B invoice.
For example, at an 18% rate (check the rate that applies to your item), a ₹1,000 sale carries ₹180 of tax. In the same state that shows as ₹90 CGST and ₹90 SGST. Across states it shows as ₹180 IGST. The invoice total is ₹1,180 either way.
Mistakes that cause trouble later
- Skipping or reusing invoice numbers.
- A missing or wrong HSN code on an item.
- Choosing the wrong tax split for the place of supply.
- Editing or deleting an invoice after it has been issued, instead of raising a credit note.
- Typing the buyer’s GSTIN wrongly.
- Mixing up tax-inclusive and tax-exclusive prices, which changes the taxable value.
Keeping invoices tidy day to day
Set up your business details, item HSN codes and tax rates once, so every invoice picks them up automatically instead of being typed again. That is how GST invoicing in LocalPOS works, and the tax summaries in your reports give your accountant a clean starting point each month.
Larger businesses may also have to follow e-invoicing, and moving goods can need an e-way bill. Ask your chartered accountant whether either applies to you, and when.
Written by the LocalPOS team. Tax, legal and compliance points are general guidance. Please confirm them with a qualified professional for your own business.