How to create a GST invoice in India: 7 simple steps
Learn how to create GST invoice in seven simple steps, from choosing the document to sending it. Includes the fields to show, a worked tax split and when an E-Way Bill is needed.
Rahul Sharma
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11 min read
Here is how to create GST invoice in seven simple steps: pick the right document, add your details and a unique number, add the buyer, list items with HSN or SAC codes, split the tax as CGST and SGST or IGST, check the totals, then send it. If goods are moving, you may also need an E-Way Bill. This guide walks through each step with one example.
How to create GST invoice: what it is and who must issue one
A GST invoice, also called a tax invoice, is the bill a GST-registered seller gives a buyer for a taxable sale. It shows what was sold and the tax charged.
Rule 46 of the CGST Rules sets out what a tax invoice must carry. You can read it on the CBIC tax information site. If you do not charge GST on a supply, because you are a composition taxpayer or the supply is exempt, you issue a bill of supply instead (Section 31 of the CGST Act and Rule 49).
This guide is for owners and accountants at small and growing Indian businesses: retail, wholesale, distribution, manufacturing and services. You do not need to be a tax expert. If you can write a normal bill, you can learn how to create GST invoice by following these steps.
Every invoice should answer five questions for the buyer: who sold, who bought, what was sold, how much tax was charged, and under which tax head. When those answers are clear, the invoice does its job for both sides.
Read the field list first, then work through the seven steps in order. They follow the order in which you fill in an invoice, from choosing the document to sending it, with an E-Way Bill if goods move. Where a case is specific to your business, confirm it with your accountant.
How to create GST invoice: the fields you must show
A GST invoice must carry the particulars listed in Rule 46 of the CGST Rules. The rule lists required details, not one fixed layout.
| Field | What to put |
|---|---|
| Supplier details | Your name, address and GSTIN |
| Invoice number | A consecutive serial number, unique for the financial year |
| Date | Date of issue |
| Buyer details | Name, address and GSTIN (if the buyer is registered) |
| HSN or SAC code | Code for goods (HSN) or services (SAC) |
| Description and quantity | What you sold and how much |
| Value, discount and taxable value | Total value, any discount, and the taxable value |
| Tax | CGST and SGST, or IGST, with rate and amount |
| Place of supply | State name, for supplies between states |
| Signature | Signature or digital signature of the supplier or their representative |
Use the table as a checklist each time you design or review your template. Once the template carries every field, how to create GST invoice for each sale comes down to filling in the buyer and the items.
Read the current text of Rule 46 before you finalise your template. Guides count the fields differently, so this article gives no count. A few fields apply only in certain cases, such as the details needed for an unregistered buyer, so check the rule for those.
How to create GST invoice, steps 1 to 4: prepare the invoice
The first four steps build the top half of the invoice: the document type, your details, the buyer and the items.
Step 1: How to create GST invoice by choosing the right document
To know how to create GST invoice correctly, pick the document first: use a tax invoice when you charge GST, a bill of supply when you do not, and a delivery challan when goods move without a sale.
- Tax invoice: a registered seller charging GST on a taxable sale.
- Bill of supply: issued instead of a tax invoice by composition taxpayers and for exempt supplies. It carries no tax.
- Delivery challan: Rule 55 of the CGST Rules allows a delivery challan instead of an invoice when goods are transported for job work or for reasons other than supply.
Ask two questions. Am I charging GST on this supply? Then raise a tax invoice. Are the goods only moving, with no sale? Then a delivery challan may be the right paper. Apni invoice combines GST invoicing, E-Way Bill and Delivery Challan in one workflow, so you do not switch tools when the document changes.
Step 2: How to create GST invoice with your details and a unique number
Start with your business name, address and GSTIN, then give the invoice a unique serial number.
Rule 46 asks for a consecutive serial number of not more than 16 characters. It can use letters, numbers, hyphen and slash, and it must be unique for the financial year. For example, INV/26-27/0001 is 14 characters, counting the slashes. This is only a pattern, not a required format.
Decide your pattern once and keep it. Do not skip or reuse numbers. Add the invoice date, and put your details at the top of the page.
Step 3: Add the buyer’s details
Next in how to create GST invoice is the buyer: add the buyer’s name and address. If the buyer is registered for GST, add their GSTIN too.
Copy the GSTIN carefully, or ask the buyer to confirm it in writing. Save each buyer once and reuse the details, so you do not retype them. For an unregistered buyer, what you must show can differ, so read the current Rule 46. If goods go somewhere other than the buyer’s address, add the delivery address. Then check the buyer’s state, which decides the tax in Step 5.
Step 4: Add items, HSN/SAC codes and rates
When you work out how to create GST invoice lines, start with each item: add a description, quantity, price and HSN or SAC code, then any discount and the taxable value.
Rule 46 asks for the HSN code for goods and the accounting code (SAC) for services. Confirm the right code and rate for each item on the official GST portal. Do not guess from memory. Per line, show the description, code, quantity and unit, rate, discount, taxable value, and tax rate and amount. Store each item once and pick it when you invoice. We have not listed GST rates here. Take yours from the official GST rate schedule on the day you invoice.
How to create GST invoice, steps 5 to 7: split the tax, check and send
The last three steps work out the tax, check the invoice and send it out, with an E-Way Bill if goods move.
Step 5: How to create GST invoice with the right CGST, SGST or IGST
If you and the buyer are in the same state, the tax is CGST plus SGST. If you are in different states, the tax is IGST.
The CGST Act (Section 9) levies central tax on supplies within a state, and the IGST Act (Section 5) levies integrated tax on supplies between states. Here is one labelled example with made-up names and amounts. The buyer is in the same state as the seller in the first case, and in another state in the second.
Two items: 10 units at ₹500 = ₹5,000, and 5 units at ₹1,000 = ₹5,000. Total taxable value: ₹10,000.
| Line | Same state | Other state |
|---|---|---|
| Taxable value | ₹10,000 | ₹10,000 |
| CGST at 9% | ₹900 | not charged |
| SGST at 9% | ₹900 | not charged |
| IGST at 18% | not charged | ₹1,800 |
| Invoice total | ₹11,800 | ₹11,800 |
Example only: 18% is a round rate chosen to keep the sums simple. Use the rate for your own item from the official GST rate schedule.
Step 6: Check totals, place of supply and signature
The last check in how to create GST invoice is to read the invoice once as if you were the buyer. Check that the GSTINs are correct, the number follows your series within 16 characters, every item has a code, and taxable value, tax and total add up. Make sure the tax head is right, the place of supply is shown where needed, and the invoice is signed or digitally signed. Keep a copy of every invoice in one folder.
Step 7: Send it, and generate an E-Way Bill if goods move
How to create GST invoice ends with sending it, by print, email or message. If you are dispatching goods, you may also need an E-Way Bill. We have not quoted a value limit here, so check the current rules on the official E-Way Bill portal before each dispatch.
The invoice already holds who is sending, who is receiving, what is moving and its value, so dispatch should not mean typing it all again. In Apni invoice, an E-Way Bill can be generated from an existing invoice. Keep the invoice, any challan and the E-Way Bill together with the goods.
E-invoicing and common mistakes
E-invoicing applies only to some businesses, and most invoice errors are small and easy to prevent. This section covers both.
Is e-invoicing needed for you?
The rules have changed over time, so check before you assume either way. We have not stated any turnover limit here. Check the latest position on the GST portal or ask your accountant for a clear yes or no, and note the date. If it applies to you, it adds a step after you prepare the invoice. If it does not, the seven steps above cover how to create GST invoice for your business.
How to create GST invoice without these five mistakes
- Wrong state. This sends tax to the wrong head: CGST and SGST instead of IGST, or the other way round. Check the buyer’s state first.
- No HSN or SAC code. Add one on every item line, and store it with the item.
- Gaps or repeats in numbering. Keep one clean series.
- No tax split. Show CGST and SGST, or IGST, with rate and amount.
- Missing signature. Sign it, or use a digital signature, before it leaves your business.
The five points above are general checklist items. The question below comes from what Apni invoice customers say when they first move to GST invoicing.
Old invoices or only new ones? Apni invoice customers are often confused about whether all their invoices must be shifted to GST, or only the new ones. We do not state a rule here. Confirm with your accountant which invoices apply to your business. You can also ask your accountant how purchase invoices, for example for furniture, should be recorded.
How to create GST invoice faster with Apni invoice
Apni invoice is GST invoicing software that combines invoicing, E-Way Bill and Delivery Challan in one workflow. It serves retail, wholesale, distributors, manufacturers and service businesses.
If you want to know how to create GST invoice with less retyping, start from the invoice itself, because it is the starting point for the other two documents. When goods are dispatched, an E-Way Bill can be generated from an existing invoice, so you do not start from a blank form.
Plans on the pricing page:
- Cloud plan: ₹7,999, with hosting included.
- Lifetime plan: a one-time ₹25,999 license with on-premise installation.
- Custom Feature plan: starting at ₹29,999, and the final cost depends on scope.
GST is added separately to all prices.
Want to see how it fits your business? Talk to us about GST invoicing, E-Way Bill and Delivery Challan in one workflow, or read more about our GST invoicing software.
FAQ
These short answers cover what small businesses ask most about GST invoices. Confirm anything specific to your business with your accountant.
How to create GST invoice in Excel?
You can, if the invoice carries the particulars Rule 46 asks for, because the rule sets no single layout. The risk is manual work: you number invoices and split the tax by hand, and mistakes are easy to make.
Is there a fixed GST invoice format?
No single layout is fixed. Rule 46 lists the particulars an invoice must carry, such as supplier and buyer details, number, date, tax amounts and signature. You can arrange them to suit your business.
What if I make a mistake on an invoice?
Credit notes and debit notes are the tools GST uses to correct an invoice after it is issued, and Section 34 of the CGST Act covers them. Ask your accountant which one fits your case.
Do I need an E-Way Bill for every invoice?
Not necessarily. It depends on whether goods are being moved and on the current rules, so check the official E-Way Bill portal. If you do need one, Apni invoice can generate an E-Way Bill from an existing invoice.
What is the difference between a tax invoice and a bill of supply?
A tax invoice is used when GST is charged. A bill of supply is issued instead by composition taxpayers and for exempt supplies, and it carries no tax.
Which GST invoice number format should I use?
Use a consecutive, unique number of no more than 16 characters, using letters, numbers, hyphen and slash. A short prefix, the year and a running number works well.
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