Other businesses

GST invoice format for a software reseller

A software reseller's invoice must show what kind of right is being sold and for how long. Electronic licences and subscriptions are licensing services for the right to use computer software under SAC 997331 at 18%, while software on physical media is goods under HSN 8523, also 18%. Beyond the standard fields, print the product edition, licence type, seat or user count, subscription start and end dates, licence key or order reference, the end customer's name if different from the buyer, and any implementation charges as separate lines.

Download this format free

Pre-filled with software reseller sample items and fields. No sign-up.

Excel (.xlsx, with formulas) Word (.docx) PDF (print and fill)

Or create these invoices in software, free

Sample software reseller invoice

Description	HSN/SAC	Qty	Rate (₹)	Taxable (₹)	GST
Accounting software, multi-user annual subscription, 5 users	997331	5 USER	5,400.00	27,000.00	18%
Office productivity suite, business standard, annual licence	997331	10 USER	7,800.00	78,000.00	18%
Antivirus total security, retail box with media, 3 devices	8523	4 NOS	1,600.00	6,400.00	18%
Software installation and data migration	998313	1 JOB	6,000.00	6,000.00	18%
End-user training session, half day	999293	1 SESSION	4,000.00	4,000.00	18%
Taxable value				₹1,21,400.00
GST (CGST + SGST, or IGST if inter-state)				₹21,852.00
Invoice total				₹1,43,252.00

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

Extra fields a software reseller invoice needs

Product edition and licence type: State the exact product and edition, and whether the licence is perpetual, annual subscription or term-based. A Standard and a Professional edition can differ several-fold in price, and the licence type decides how renewals are billed.
Seats, users or devices: Most business software is priced per user, per device or per server core. Showing the count and unit price makes the total checkable and helps the customer's IT team track how many licences they actually own.
Subscription period: Print the start and end date of the subscription. Customers use these dates to plan renewals, and the reseller needs them to bill renewals on time and to apportion revenue when a term spans financial years.
Licence key or vendor order number: The publisher's order or entitlement number is the customer's proof of a genuine licence in an audit. Quoting it on the invoice connects the commercial document to the vendor's licensing portal.
End customer and deployment location: Resellers often sell through a system integrator or to a group company. Naming the end customer and the site where software will be used supports the licence registration and clarifies place of supply.
Separate implementation or training line: Installation, data migration and user training are services distinct from the licence. Listing them separately shows the customer what they paid for beyond the software itself.

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 software reseller

Licences are services, boxed copies are goods

When a customer receives only a licence key or a download link, the supply is a licensing service for the right to use computer software under SAC 997331, taxed at 18%. Pre-packaged software on a disc or a USB device is goods under heading 8523, which covers recorded and unrecorded media, and is also 18%. The rate is the same, but goods and services are reported differently and the e-way bill rules apply only to physical goods, so the invoice should classify each line correctly.

Subscriptions and continuous supply

An annual subscription billed in one amount upfront is invoiced when the licence is activated or payment is received. Where a customer pays monthly or quarterly over a contract longer than three months, the arrangement is a continuous supply of services, and an invoice is due on or before each payment due date. Resellers that let these lapse end up issuing several months of invoices together and paying interest on late tax.

Sales to government buyers and TDS

Government departments, local authorities and specified public bodies deduct tax at source under section 51 at 2% of the taxable value when a single contract exceeds Rs 2.5 lakh. Resellers supplying licences through GeM or tenders should expect to see the deduction in their electronic cash ledger and must accept it on the portal. The invoice should quote the contract or GeM order number so the deduction can be matched.

Imported licences and place of supply

Many resellers buy licences from a foreign publisher or its distributor. If you import a software service directly from a supplier outside India, you may have to pay IGST under reverse charge on that import before reselling. When you bill an Indian customer, place of supply for the licence follows the general rule, which for a registered customer is its registered location. Billing a customer in another state therefore needs IGST even if the key is emailed from your city.

Renewal notices are not invoices

Resellers often send pro forma renewal quotes. These are not tax invoices and should be clearly marked as quotations. Raise the tax invoice only when the order is accepted, so that cancelled renewals do not leave tax invoices to reverse.

Common billing mistakes

Using HSN 8523 for licence keys delivered by email, which treats a service as goods and confuses HSN and SAC reporting in GSTR-1.
Billing a three-year licence in year one while the customer pays annually, so the invoice and payment schedule do not match.
Ignoring the 2% TDS deducted by a government buyer and treating the short payment as a bad debt.
Sending a pro forma renewal quote formatted like a tax invoice, then failing to reverse it when the customer declines.

Software reseller GST invoice: FAQ

What is the SAC code for selling software licences?

997331, licensing services for the right to use computer software and databases. It is taxed at 18%.

Is GST different for cloud subscriptions?

A subscription to software you resell is still billed at 18%. Classify it as a software licence or as an online service depending on what the customer receives, but the rate stays 18%.

Do I need an e-way bill for software?

Only for physical goods such as boxed media under 8523 when the consignment value crosses Rs 50,000. Electronic licences delivered online need no e-way bill.

Can I bill installation along with the licence?

Yes, as separate lines. Installation and configuration are IT services such as 998313, also at 18%. Listing them separately shows the customer what they paid for beyond the software.

How do I invoice a customer who adds users mid-term?

Raise a fresh invoice for the additional seats, showing the number added, the pro-rata period from the activation date to the common renewal date and the pro-rata price. Quote the original subscription invoice so both can be read together at renewal.

Sources: CBIC — Notification 9/2025-Integrated Tax (Rate), goods rate schedules · CBIC — Notification 9/2025-Central Tax (Rate), 17 Sep 2025 · CBIC tax information portal (notifications and SAC scheme) · CBIC — GST rates for goods and services

More formats: AC repair and service · Bicycle repair shop · CCTV installer · Computer and laptop repair shop · Computer training institute · Cyber cafe · DJ and sound system rental · Dry cleaner · all businesses