Who must issue a tax invoice
Every business registered under GST must issue a tax invoice when it sells taxable goods or services. If you are in the composition scheme or sell only exempt goods, you issue a bill of supply instead, without GST.
The checklist (Rule 46 of the CGST Rules)
- Your name, address and GSTIN.
- A consecutive invoice number, unique for the financial year, up to 16 characters.
- The invoice date.
- The buyer's name, address and GSTIN if the buyer is registered.
- If the buyer is not registered and the value is ₹50,000 or more: the buyer's name and address, the delivery address, and the state name and code.
- HSN code for goods or SAC code for services.
- Description of the goods or services.
- Quantity and unit (for goods).
- Total value, and the taxable value after any discount.
- GST rate and amount, split into CGST and SGST (same state) or IGST (other state).
- Place of supply with the state name, for supplies to another state.
- Delivery address if it is different from the place of supply.
- Whether tax is payable under reverse charge.
- Signature or digital signature of you or your authorised person.
CGST + SGST or IGST?
| Buyer is | Tax on the invoice | At 18% |
|---|---|---|
| In the same state as you | CGST + SGST (half each) | 9% CGST + 9% SGST |
| In another state | IGST (full rate) | 18% IGST |
| In a union territory without a legislature | CGST + UTGST | 9% + 9% |
The place of supply decides which one applies. For goods it is usually where the goods are delivered.
How many digits of HSN?
| Your turnover last year | HSN/SAC digits |
|---|---|
| Up to ₹5 crore | 4 digits, required on invoices to registered buyers (B2B) |
| More than ₹5 crore | 6 digits on all invoices |
Copies and time limits
- Goods: make three copies, marked "Original for recipient", "Duplicate for transporter" and "Triplicate for supplier".
- Services: make two copies, original and duplicate.
- Goods: issue the invoice before or when the goods leave.
- Services: issue the invoice within 30 days of providing the service.
Tip: If your aggregate turnover is above ₹5 crore, you must also generate an e-invoice (IRN) on the government portal for B2B sales. Add the IRN to your invoice.
Current GST rates
From 22 September 2025, most goods and services are taxed at 5% or 18%, with 40% for some luxury and sin goods and 0% for exempt items. A few items still have other rates. Always check the rate for your HSN or SAC code with your accountant or the GST portal.