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What Must an Invoice Include in India?

In this guide

A valid GST tax invoice in India must include the supplier's GSTIN, a consecutive invoice number, the date, the buyer's details, HSN or SAC codes, the taxable value, and the GST breakdown (CGST, SGST, or IGST). Businesses with turnover above the threshold must issue a tax invoice for every taxable supply.

Mandatory Fields for a GST Tax Invoice

Under Section 31 of the CGST Act, 2017, every registered person making a taxable supply must issue a tax invoice. The invoice must contain the following:

  1. Supplier's name, address, and GSTIN
  2. A consecutive serial number — unique for each financial year, containing only alphabets, numerals, or special characters (hyphen or slash)
  3. Date of issue
  4. Recipient's name and address — and their GSTIN if they are registered
  5. HSN code (for goods) or SAC code (for services)
  6. Description of goods or services
  7. Quantity and unit (for goods)
  8. Total value of supply
  9. Taxable value — after discounts
  10. Tax rate and amount — split into CGST and SGST (for intra-state) or IGST (for inter-state)
  11. Place of supply — determines whether CGST/SGST or IGST applies
  12. Signature or digital signature of the supplier or an authorised representative

The invoice must be prepared in triplicate for goods (Original, Duplicate, and Triplicate) and in duplicate for services (Original and Duplicate).

Tax Invoice vs Bill of Supply

Not every transaction requires a tax invoice. If you are registered under the composition scheme or are making exempt supplies, you issue a bill of supply instead.

Tax InvoiceBill of Supply
Who issues itRegular GST-registered businessesComposition dealers or exempt suppliers
Includes GSTYes — CGST/SGST or IGST breakdownNo — cannot charge or show GST
Input tax creditBuyer can claim ITCBuyer cannot claim ITC
HSN/SAC codesRequired (based on turnover threshold)Optional

CBIC

Under Rule 46 of the CGST Rules, failing to issue a proper tax invoice can result in penalties and the buyer losing their right to claim input tax credit.

E-Invoicing Requirements

India has progressively lowered the e-invoicing threshold. Businesses with aggregate turnover above ₹5 crore must generate e-invoices through the Invoice Registration Portal (IRP). The IRP assigns a unique Invoice Reference Number (IRN) and a QR code to each invoice.

Key points:

  • E-invoicing does not change what must be on the invoice — it adds a digital verification layer
  • The IRN and QR code must appear on the final invoice
  • Invoices not registered on the IRP (when required) are treated as invalid

Common Mistakes to Avoid

  • Wrong GSTIN — double-check both your GSTIN and the buyer's before issuing
  • Missing or incorrect HSN/SAC codes — these determine the applicable tax rate
  • Not splitting CGST/SGST vs IGST correctly — this depends on whether the supply is intra-state or inter-state
  • Issuing a tax invoice under composition scheme — composition dealers must issue a bill of supply, not a tax invoice

Create a GST-Compliant Invoice

Our India invoice generator includes all mandatory GST fields, HSN/SAC code support, and automatic CGST/SGST/IGST calculation.

Generate a compliant Indian tax invoice with GST in minutes.

Create a GST invoice

Frequently Asked Questions

What is the difference between a tax invoice and a bill of supply?

A tax invoice is issued by registered businesses making taxable supplies and includes GST details. A bill of supply is issued by composition scheme dealers or for exempt supplies — it does not include GST amounts.

Is an HSN code mandatory on a GST invoice?

Yes, for most businesses. Businesses with turnover above ₹5 crore must mention 6-digit HSN codes. Those with turnover between ₹1.5 crore and ₹5 crore must mention 4-digit codes. Below ₹1.5 crore, HSN codes are optional for B2C transactions but recommended.

How long must I keep GST invoices?

Under GST rules, you must retain invoices and supporting records for at least 6 years from the due date of the annual return for the year the invoice relates to.

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