Shops and retail

GST invoice format for a hardware shop

A hardware shop bill lists many small, low-value items in mixed units, from screws by weight to pipes by length and locks by piece. Nearly all of them, including fasteners, hand tools, locks, plastic pipes, taps and cement, are taxed at 18% after September 2025. The invoice should show the unit for every line, size and grade specifications, the buyer's GSTIN when a contractor buys for a project, and the site or delivery address for bulk orders.

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Sample hardware shop invoice

Description	HSN/SAC	Qty	Rate (₹)	Taxable (₹)	GST
MS hex bolts with nuts M10 x 50 mm	7318	5 KGS	140.00	700.00	18%
Steel hammer 500 g with handle	8205	2 PCS	320.00	640.00	18%
Brass padlock 50 mm, 7 levers	8301	3 PCS	450.00	1,350.00	18%
uPVC pipe 1 inch, 6 m length	3917	10 PCS	380.00	3,800.00	18%
Brass bib tap 15 mm	8481	4 PCS	550.00	2,200.00	18%
Portland cement OPC 53 grade (50 kg bag)	2523	20 BAG	390.00	7,800.00	18%
Taxable value				₹16,490.00
GST (CGST + SGST, or IGST if inter-state)				₹2,968.20
Invoice total				₹19,458.20

Sample prices are illustrative. Check the GST rate for your exact item or service before billing.

Extra fields a hardware shop invoice needs

Size, grade and specification: Hardware items differ by size and grade: bolt diameter, pipe class, hinge length, lock lever count. Printing these specifications confirms what was sold and prevents returns for the wrong size being accepted without checking.
Unit of measure: Nails and screws are sold by kg or box, pipes by length, wire by coil and locks by piece. A correct UQC on each line keeps quantity records accurate and avoids HSN summary errors in returns.
Contractor GSTIN and project: Contractors and builders buy in bulk and need credit. Their GSTIN, legal name and the project or site name on the invoice let them claim input tax credit and allocate the cost to the right job.
Site delivery address: Bulk orders of cement, pipes and fittings go straight to building sites. The site address supports place of supply and e-way bill details and helps the driver deliver to the right location.
Brand and batch for cement: Cement bags carry brand and week of manufacture. Recording them helps with quality complaints and stock rotation, because older cement loses strength and contractors often ask for recent batches.
Credit terms: Hardware shops often run monthly accounts for contractors. Credit period and account code on the invoice support follow-up and match the bill to the running ledger.

Standard GST invoice fields

Rule 46 of the CGST Rules applies to every tax invoice, including this one:

Supplier name, address and GSTIN
Consecutive invoice number (max 16 characters, unique for the year)
Date of issue
Customer name, address and GSTIN (if registered)
Place of supply with state name
HSN/SAC code per item
Description, quantity and unit
Taxable value after discounts
GST rate and CGST + SGST or IGST amounts
Signature or digital signature

GST rules that matter for a hardware shop

Most hardware is at 18%, including cement now

Under Notification 9/2025-Central Tax (Rate), screws, bolts, nuts and rivets (7318), hand tools (8205), padlocks and locks (8301), plastic pipes and fittings (3917), taps and valves (8481) and putty (3214) are in the 18% schedule. The 56th GST Council also cut cement from 28% to 18%, so a hardware shop that stocks cement should have updated its rate from 22 September 2025. A small number of items sit lower, such as hand pumps of 8414 20 20 at 5%, so the shop should not set a blanket rate for every product.

Selling to contractors and builders

Contractors are the main B2B buyers of a hardware shop. They need a proper tax invoice with their GSTIN to claim input tax credit, though credit on goods used for constructing immovable property on their own account is blocked under section 17(5). The shop's duty is to issue a correct invoice; whether the buyer can use the credit is the buyer's matter. Keep B2B invoices in a series separate from counter sales so they report correctly in GSTR-1. Check each contractor GSTIN on the portal before the first credit sale, since a wrong GSTIN means the buyer's credit never appears.

Bulk deliveries and e-way bills

Cement, pipes and steel fittings delivered to a site often cross the e-way bill limit of fifty thousand rupees for inter-state movement or the state's limit for intra-state movement. The e-way bill must be generated before the vehicle leaves and must show the site address. Where several smaller bills go to the same site in one trip, check the rules of your state, since some states require the consignment value to be considered together for the threshold. Record vehicle number and site address on every delivery bill so the movement can be verified if a vehicle is stopped.

Composition and B2B customers

Many hardware shops are small family businesses that could join the composition scheme. The drawback is that composition dealers cannot issue tax invoices, so contractors and builders who buy from them cannot claim credit. If a large part of your sales goes to registered contractors, staying as a regular taxpayer keeps you competitive. If your customers are mostly households, composition may reduce compliance work. Remember that the scheme applies to the whole PAN, so a shop with a second branch in another state cannot opt for composition at all, and a composition dealer cannot make inter-state sales to a contractor across the border.

Common billing mistakes

Billing cement at the old 28% rate after it moved to 18% on 22 September 2025, over-charging every contractor on site.
Selling screws and nails by the kilogram but entering quantity as pieces, so stock and HSN-wise quantity reports never match at year end.
Issuing one counter bill without the contractor's GSTIN for a large site order, which leaves the buyer unable to claim credit.
Sending a full truck of pipes and cement to a site without an e-way bill because each item was billed separately.

Hardware shop GST invoice: FAQ

What is the GST rate on hardware items?

Most hardware items such as screws, bolts, hand tools, locks, plastic pipes, taps, valves and putty are taxed at 18%. Cement is also at 18% from 22 September 2025, down from 28%. A few items, such as certain hand pumps, are at 5%, so check each heading in your item master.

How should nails and screws be shown on a GST invoice?

Use the unit in which you actually sell them, usually kilograms or boxes. Show the size and type on the line, such as wire nails 2 inch or self-tapping screws 8 x 25 mm, and use HSN 7317 for nails or 7318 for screws and bolts as applicable.

Can a hardware shop give credit bills to contractors?

Yes. Issue a normal tax invoice on the date of supply with the contractor's GSTIN and record the credit period. GST is due on the invoice regardless of when payment comes. If the contractor does not pay within 180 days, their input tax credit is reversed, but the supplier's tax liability remains.

Is a cement bag bill different from other hardware bills?

Cement uses HSN 2523 at 18%, the same rate as most other hardware now. Cement bags carry an MRP under Legal Metrology rules, so ensure the selling price does not exceed it. Bulk cement deliveries commonly need an e-way bill because of the value involved.

Sources: CBIC — Notification 9/2025-Central Tax (Rate), goods rate schedules · Commercial Taxes Directorate, West Bengal — 56th GST Council rate synopsis · CBIC — CGST Act and Rules (sections 15, 31, 34; Rules 27 and 46)

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