To make an invoice, add your business name, address and GSTIN; give it a unique serial number and date; enter the buyer's details; list each item with HSN or SAC code, quantity, rate and discount; calculate the taxable value and GST (CGST+SGST for same-state sales, IGST for inter-state); add the total, payment terms and signature; then send it and record it in your books.
Making an invoice looks simple until a customer's accountant sends it back for a missing GSTIN, or you discover two invoices share the same number. A good invoice takes five minutes to prepare and avoids weeks of follow-up.
This guide walks through how to make an invoice in India from scratch, the GST details you must include, a fully calculated example, and the mistakes that most often cause rework.
What do you need before making your first invoice?
Gather these once and reuse them on every invoice:
- Your legal and trade name, registered address and GSTIN (if registered). You can check a GSTIN's structure with the GSTIN validator.
- An invoice numbering scheme for the financial year, for example
PUN/26-27/0001. See invoice numbering best practices. - An item or service list with HSN or SAC codes and the current GST rate for each. Our guides on what is an HSN code and what is a SAC code explain the codes.
- Standard payment terms, such as "Net 15" or "50% advance, balance on delivery". See invoice payment terms.
- Payment details: bank account, IFSC, UPI ID or payment link.
- A logo and signature, physical or digital.
How to make an invoice: step by step
Follow these steps in order. They match the particulars that Rule 46 of the CGST Rules requires on a tax invoice.
- Choose the right document. If you are GST-registered and charging tax, issue a tax invoice. If you are a composition dealer or supplying exempt goods, issue a bill of supply. If the deal is not yet confirmed, send a quotation or proforma instead.
- Add a clear title. Write "Tax Invoice" at the top so the buyer's team knows what it is.
- Enter your details. Name, address and GSTIN of the supplier.
- Assign the invoice number and date. Take the next number in your series. It must be consecutive, up to sixteen characters and unique for the financial year. Use the date you actually issue the invoice.
- Enter the buyer's details. Name, billing address and GSTIN if registered. For an unregistered buyer with taxable value of ₹50,000 or more, add the delivery address and the state name with its code.
- Record the place of supply. This decides whether you charge CGST+SGST or IGST. For inter-state supplies, write the state name. See place of supply rules.
- List each item. For each line add description, HSN or SAC code, quantity, unit (pieces, kg, hours), rate and any discount.
- Calculate the taxable value. Quantity × rate, minus discounts shown on the invoice.
- Apply GST. Charge CGST and SGST at half the rate each for intra-state supplies, or the full rate as IGST for inter-state supplies. Show the rate and the amount separately.
- State whether reverse charge applies. If the recipient pays tax under reverse charge, say so on the invoice.
- Total the invoice. Add taxable value and tax, round off if you round, and write the total in words as well as figures.
- Add payment terms and details. Due date, late-payment terms if agreed, bank and UPI details.
- Sign the invoice. Physical or digital signature of the supplier or an authorised person.
- Generate an IRN if e-invoicing applies. If your aggregate turnover in any year from 2017-18 has crossed the e-invoicing limit (₹5 crore since 1 August 2023), B2B invoices must be reported to the Invoice Registration Portal. See how to generate IRN.
- Send it and record it. Email, WhatsApp or hand over the original. Record the invoice in your sales register so it flows into GSTR-1.
Worked example: a service invoice from a Nagpur design studio
A design studio in Nagpur, Maharashtra, registered under GST, completes a brochure and social media package for a registered client in Indore, Madhya Pradesh. Because supplier and recipient are in different states, the supply is inter-state and attracts IGST.
Services supplied:
- Brochure design: 1 job at ₹24,000
- Social media creatives: 12 posts at ₹1,500 each
- Agreed discount: ₹2,000 on the whole order
- GST rate assumed: 18% (confirm the rate for your SAC code)
| Line | Calculation | Amount (₹) |
|---|---|---|
| Brochure design | 1 × 24,000 | 24,000.00 |
| Social media creatives | 12 × 1,500 | 18,000.00 |
| Subtotal | 24,000 + 18,000 | 42,000.00 |
| Less discount | 2,000.00 | |
| Taxable value | 42,000 − 2,000 | 40,000.00 |
| IGST @ 18% | 40,000 × 18% | 7,200.00 |
| Invoice total | 40,000 + 7,200 | 47,200.00 |
In words: Rupees Forty-Seven Thousand Two Hundred only.
If the same client were in Pune, the studio would show CGST @ 9% of ₹3,600 and SGST @ 9% of ₹3,600 instead, with the same ₹47,200 total.
If the client deducts TDS on the professional fee, they will pay less than ₹47,200 in cash and give you credit for the tax deducted. That does not change the invoice; it changes how you record the receipt. See TDS on invoices.
What should the invoice layout look like?
A clean layout makes invoices easier to check and pay. A common arrangement:
| Section | Position | Contents |
|---|---|---|
| Header | Top | "Tax Invoice", logo, your name, address, GSTIN |
| Invoice meta | Top right | Invoice number, date, due date, place of supply |
| Bill to / Ship to | Below header | Buyer name, address, GSTIN, delivery address |
| Item table | Middle | Sr no, description, HSN/SAC, qty, unit, rate, discount, taxable value, tax rate, tax amount |
| Tax summary | Below items | Taxable value, CGST, SGST or IGST, cess, round-off, total |
| Amount in words | Below totals | Total in words |
| Payment section | Footer | Bank details, UPI, payment terms |
| Declarations | Footer | Reverse charge yes/no, terms, signature |
You can start from a ready format on the templates page.
When must you issue the invoice?
- Goods: before or at the time of removal for supply where goods move, or on delivery otherwise.
- Services: within thirty days from the date of supply under Rule 47. Insurers, banks and financial institutions including NBFCs have forty-five days.
Issuing on the day of delivery is the safest habit. Late invoicing does not delay the tax; it only makes you more likely to pay late and owe interest.
How should you send and store invoices?
- Share digitally. A PDF by email or WhatsApp reaches the buyer immediately and creates a timestamped record of when it was sent.
- Attach a payment link. A UPI link or QR code on the invoice removes one excuse for delay.
- Keep copies organised. For goods, the original goes to the buyer, the duplicate to the transporter and the triplicate stays with you. For services, the original goes to the buyer and the duplicate stays with you.
- Reconcile monthly. Match invoices issued against GSTR-1 data before filing.
- Follow up on due dates. A polite reminder on the due date gets more invoices paid. See how to get paid faster.
Manual invoice vs software: which should you use?
| Method | Good for | Watch out for |
|---|---|---|
| Printed bill book | Very low volumes, counter sales | Copying errors, no backup, hard to report |
| Word or Excel template | A few invoices a month | Duplicate numbers, formula errors, old tax rates |
| Free online generator | Occasional invoices | No ledger, no reports, limited history |
| Billing software | Regular invoicing, GST filing | Choose one that supports your tax needs |
If you invoice daily, software pays for itself in time saved. Billing Software by Betterwork, for example, numbers invoices automatically, picks CGST+SGST or IGST from the place of supply, stores HSN/SAC codes against items and exports data for GSTR-1. For occasional invoices, the free GST invoice generator is enough.
How do you make an invoice for a B2C customer?
Sales to consumers follow the same rules with a few practical differences:
- No GSTIN. Leave the buyer GSTIN blank.
- Recipient details by value. If the taxable value is ₹50,000 or more, add the customer's name, address, delivery address and state name with code. Below that, add them only if the customer asks.
- Place of supply still matters. For goods delivered to another state, IGST applies even to a consumer, so record the delivery state.
- Counter speed. Retail counters often use a short-format invoice with a saved item list, but it must still carry the mandatory particulars.
How do you make an invoice for an unregistered customer?
Many small businesses sell to customers who have no GSTIN: walk-in shoppers, households and freelancers. The steps are the same, with three differences.
- Leave the GSTIN field empty. Do not type "NA" or a made-up number.
- Check the value. If the taxable value is ₹50,000 or more, Rule 46 requires the customer's name and address, the delivery address, and the state name with its code. Below ₹50,000 you record these only if the customer asks.
- Still decide the place of supply. Tax type (CGST + SGST or IGST) depends on it, even when the buyer is unregistered.
Worked example
A Thane furniture shop sells a sofa set to a household in the same state for ₹62,000 before tax. Assuming 18% GST for this example:
| Line | Amount (₹) |
|---|---|
| Taxable value | 62,000.00 |
| CGST @ 9% | 5,580.00 |
| SGST @ 9% | 5,580.00 |
| Total | 73,160.00 |
Because the taxable value is above ₹50,000, the invoice must show the buyer's name, address, delivery address and "Maharashtra (27)". For a ₹12,000 chair sold the same day to someone who does not ask for details, those fields can be left out, though the shop still records Maharashtra as the place of supply.
Common mistakes when making an invoice
- Reusing a number after a cancelled invoice. Keep the cancelled number on record and move to the next one.
- Charging the wrong type of GST. Same-state sale means CGST+SGST; different states mean IGST.
- Missing HSN or SAC codes. Required on tax invoices; the number of digits depends on your turnover.
- Applying discount after tax. Discounts on the invoice reduce the taxable value first.
- Rates not updated after September 2025. GST was restructured from 22 September 2025 into mainly 5% and 18% slabs, with 40% for specified goods. Recheck your item list.
- No due date. Without one, "pay when convenient" becomes the default.
- Wrong buyer GSTIN. One wrong digit means the credit goes nowhere. Verify before saving.
- Editing a sent invoice. Use a credit or debit note to correct it instead.
Key takeaways
- Set up your business details, numbering scheme, item list with HSN/SAC and payment terms once.
- Follow the Rule 46 particulars: supplier, number, date, buyer, HSN/SAC, value, tax, place of supply, reverse charge flag and signature.
- Decide CGST+SGST or IGST from the place of supply.
- Issue service invoices within thirty days; goods invoices at or before removal or delivery.
- Generate an IRN for B2B invoices if your turnover is above the e-invoicing limit.
- Correct errors with credit or debit notes, not by editing a sent invoice.
This guide is general information, not tax advice. Rules last checked on 20 October 2026; confirm with your tax professional for your situation.