A wrong or incomplete invoice can cost your customer their input tax credit - and cost you the customer. Here is a plain-language checklist of what a GST tax invoice should contain, based on Rule 46 of the CGST Rules.
The checklist
| Detail | Notes |
|---|---|
| Your name, address and GSTIN | Exactly as in your GST registration. |
| Invoice number | Consecutive, unique for the financial year, up to 16 characters (letters, digits, "-" and "/"). |
| Invoice date | The date of issue. |
| Customer name and address | Plus the customer's GSTIN if they are registered. |
| Place of supply | State name and code, especially for inter-state supplies. |
| HSN or SAC code | Number of digits depends on your turnover. |
| Description, quantity and unit | For goods; a clear description for services. |
| Taxable value | After discounts. |
| Tax rate and amount | CGST + SGST/UTGST for intra-state, IGST for inter-state. |
| Reverse charge | Whether tax is payable on reverse charge. |
| Delivery address | If different from the place of supply. |
| Signature | Signature or digital signature of the supplier or an authorised person. |
Common mistakes
- Wrong tax type. Charging CGST + SGST on an inter-state sale (or IGST on an intra-state one) is one of the most common errors. The place of supply decides it.
- Breaks in numbering. Manual numbering across branches or books leads to gaps and duplicates.
- Customer GSTIN typos. One wrong character and the credit does not show up for your customer.
- Missing HSN/SAC codes on products and services.
- Discount applied after tax instead of reducing the taxable value.
E-invoicing
Businesses above the e-invoicing turnover limit (currently an aggregate annual turnover above ₹5 crore) must also report B2B invoices to the Invoice Registration Portal and print the IRN and QR code on the invoice.
Let your billing software do the checking
Good billing software picks CGST/SGST or IGST from the place of supply, keeps invoice numbers consecutive per series, stores HSN codes on products and customer GSTINs on customers, and applies discounts before tax - so every invoice is right the first time. That is how quotations, invoices and payments work in GoDigitally One Billing.
This article is a general guide, not tax advice. GST rules change - confirm the current requirements with your chartered accountant.