| Description | Qty | Rate | Amount |
|---|
What Is a GST Invoice?
A GST invoice — officially called a tax invoice — is a document that a GST-registered supplier must issue to a buyer for every taxable supply of goods or services. It is the primary document used to claim Input Tax Credit (ITC) under India's GST system.
Under the GST Act, a tax invoice is mandatory for all B2B transactions where the buyer is registered under GST. For B2C supplies above ₹2.5 lakh, a tax invoice is also required.
CGST, SGST, and IGST — What's the Difference?
| Tax Type | When Applied | Example at 18% |
|---|---|---|
| CGST + SGST | Intrastate supply (seller and buyer in same state) | CGST 9% + SGST 9% = 18% total |
| IGST | Interstate supply (seller and buyer in different states) or export | IGST 18% = 18% total |
| 0% / Exempt | Certain goods and services are exempt or zero-rated under GST | No tax charged |
GST Rates in India — Quick Reference
| GST Rate | Common Items / Services |
|---|---|
| 0% | Essential food items, books, raw agricultural produce |
| 5% | Household items, economy class tickets, basic services |
| 12% | Processed food, business class tickets, some professional services |
| 18% | Most services (IT, consulting, design), manufactured goods — most common rate |
| 28% | Luxury goods, automobiles, tobacco, premium items |
What Must a GST Tax Invoice Include?
- Word "TAX INVOICE" prominently displayed
- Supplier's name, address, and GSTIN
- Buyer's name, address, and GSTIN (for B2B)
- Invoice number (unique, sequential)
- Invoice date and place of supply
- HSN code (for goods) or SAC code (for services)
- Description, quantity, and unit of goods/services
- Taxable value after any discount
- GST rate and amount — broken into CGST + SGST (intrastate) or IGST (interstate)
- Total amount due in words and figures
Who Needs to Issue GST Invoices in India?
Any individual or business registered under GST must issue a tax invoice. GST registration is mandatory if your annual aggregate turnover exceeds:
- ₹40 lakh for goods suppliers (₹20 lakh for special category states)
- ₹20 lakh for service providers (₹10 lakh for special category states)
Freelancers, IT professionals, consultants, designers, and any service provider exceeding these thresholds must register for GST and issue tax invoices. If you are below the threshold, you can issue a regular invoice without GST — simply select "No GST / Exempt" in the GST Type selector above.
Frequently Asked Questions
Everything about GST invoices for Indian freelancers and businesses
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