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Bill format: what it is
A tax invoice is the document a GST-registered seller issues to charge for goods or services; it fixes the taxable value and the CGST, SGST or IGST, and it is what the buyer claims input tax credit on. Shop bill with items, GST and total in rupees.
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Example: a filled invoice
- The title says what the document is: an invoice.
- A unique number from a continuous series, allocated when you issue it.
- Your name, address and GSTIN.
- Who it is for.
- Each line: description, HSN/SAC, quantity, rate and taxable value.
- GST split by component: CGST and SGST in the same state, IGST across states.
- The total in the document's currency and format.
Worked example: the numbers behind the invoice above
| Item | Qty | Rate | Taxable value | Tax |
|---|---|---|---|---|
| Interior emulsion paint, 10 L (HSN 3209) | 2 | ₹3,450.00 | ₹6,900.00 | ₹1,242.00 |
| Wall putty, 20 kg bag (HSN 3214) | 3 | ₹780.00 | ₹2,340.00 | ₹421.20 |
| Masking tape, 24 mm (HSN 3919) | 4 | ₹45.00 | ₹180.00 | ₹32.40 |
| Taxable value | ₹9,420.00 | |||
| CGST 9% | ₹847.80 | |||
| SGST 9% | ₹847.80 | |||
| Total | ₹11,115.60 | |||
GST is worked out per line and split into CGST and SGST (same state) or IGST (other state) from the two GSTINs.
How to fill in the bill format
- Add your shop name, address and GSTIN if registered.
- Enter the customer, or "Cash customer" for counter sales.
- List items with quantity, rate and GST.
- Save the bill; sign in to number bills and keep a daily record.
Bill format for a GST-registered shop
| Part | Contents |
|---|---|
| Header | Shop name, address, phone and GSTIN; title "Tax invoice" |
| Bill details | Bill number, date, customer name; buyer GSTIN for business buyers |
| Items | Item name, HSN, quantity, rate, discount, taxable value |
| Tax | GST rate, with CGST and SGST amounts |
| Total | Amount payable in figures and words |
| Footer | Payment mode, exchange or return policy, signature |
Bills for consumers
For sales to consumers within your state, the buyer's name and address are optional unless the value is ₹50,000 or more, when the name, delivery address and state must be shown. A one-line exchange policy on the bill saves arguments at the counter.
What to put on an invoice, field by field
| Field | What to enter |
|---|---|
| Document title | Say exactly what it is: "Tax invoice". The title tells the buyer and the tax authority how to treat it. |
| Number and date | A unique number in a continuous series (at most 16 characters, unique for the financial year) and the issue date. LuckPanda allocates the number when you issue. |
| Your business | Name, address and GSTIN (state code is the first two digits) |
| Customer | Name, address and GSTIN if registered; for unregistered buyers, name, address and state |
| Lines | Description, quantity, unit and rate, with the HSN code for goods or SAC for services. Each line carries its own tax rate. |
| Tax | GST rate per line. Same state: CGST and SGST, half each. Another state or export: IGST. |
| Totals | Taxable value, tax by component and the total, in the document currency. Amounts in words are customary in India. |
| Terms | Due date, bank or payment details and late-payment terms. |
India GST rules for an invoice
- Contents are set by rule 46 of the CGST Rules: supplier name, address and GSTIN; a consecutive serial number of up to 16 characters, unique for the financial year; date; recipient details and GSTIN if registered; HSN or SAC; description, quantity, taxable value; rate and amount of CGST, SGST/UTGST or IGST; place of supply for inter-state supplies; a reverse-charge statement where it applies; and a signature.
- HSN digits: businesses with aggregate turnover up to ₹5 crore show 4 digits on B2B invoices; above ₹5 crore, 6 digits on every invoice.
- Timing: for goods, on or before removal or delivery; for services, within 30 days of supply.
- E-invoicing (an IRN from the Invoice Registration Portal) applies to B2B invoices of businesses whose aggregate turnover crossed ₹5 crore in any year since 2017-18.
- Unregistered or composition sellers do not issue tax invoices: they issue a bill of supply and charge no GST.
Mistakes to avoid
- Editing or deleting an issued invoice instead of issuing a credit note.
- Gaps or duplicates in the number series.
- Charging the wrong tax type (for India: IGST on an intra-state sale, or CGST and SGST across states).
- Leaving out the due date and payment details, which is the commonest reason invoices are paid late.
- Rounding each line's tax differently from the total; LuckPanda computes tax per line and keeps the components adding up.
Invoice vs other sales documents
| Document | When | Asks for payment | Tax document | In the books |
|---|---|---|---|---|
| Quotation / estimate | Before the order | No | No | No |
| Proforma invoice | After the order, before supply | Advance only | No | No |
| Invoice / tax invoice | On supply | Yes | Yes | Yes: sale and receivable |
| Receipt | When paid | No, confirms payment | No (receipt voucher for advances in India) | Yes: payment |
| Credit note | After an invoice, to reduce it | No, reduces what is owed | Yes | Yes: reverses part of the sale |
Questions people ask
Do I have to give a bill for small sales?
A registered business may issue one consolidated tax invoice at the end of the day for sales under ₹200 each to unregistered buyers who do not ask for an invoice.
What should a bill without GST look like?
The same, without the GST columns or the words "Tax invoice". Under the composition scheme, title it "Bill of supply" and state that you are a composition taxable person.
Should the total be written in words?
It is customary in India and prevents disputes over altered figures, though Rule 46 itself only requires the total value.