If you run a business in India and your annual turnover exceeds ₹20 lakhs (₹10 lakhs for special category states), you are required to register for GST and issue GST-compliant invoices for every sale. For most freelancers and small business owners, figuring out the right format — CGST vs SGST vs IGST, HSN codes, GSTIN validation — is confusing and time-consuming.

This guide explains everything you need to know about GST invoicing in India, and how the right GST invoice software makes the entire process automatic.

What is a GST Invoice?

A GST invoice is a document issued by a GST-registered business to its buyer, listing the goods or services provided along with the applicable GST. It is a legal requirement under the Goods and Services Tax Act and serves as the basis for the buyer to claim Input Tax Credit (ITC).

A valid GST invoice must include:

• Your GSTIN (GST Identification Number)
• Invoice number and date
• Buyer name, address, and GSTIN (if registered)
• HSN code (for goods) or SAC code (for services)
• Taxable value of goods or services
• Applicable GST rate and amount — split as CGST + SGST (intra-state) or IGST (inter-state)
• Total invoice amount
• Place of supply

CGST, SGST, and IGST: What is the Difference?

Intra-state (same state): If you and your client are in the same state, GST is split equally between Central GST (CGST) and State GST (SGST). For example, on an 18% GST invoice, you charge 9% CGST + 9% SGST.

Inter-state (different states): If you and your client are in different states, the entire GST is charged as Integrated GST (IGST). On an 18% invoice, you charge 18% IGST — no split needed.

Export invoices: If you are billing an international client, the invoice is zero-rated under GST. You charge 0% GST and can claim a refund of GST paid on your inputs.

Common GST Rates for Freelancers and Service Businesses

• 18% GST — Software development, design, consulting, marketing, legal, accounting, and most professional services
• 12% GST — Some business services and mid-tier goods
• 5% GST — Restaurant services, some transport services
• 0% GST — Exports, educational services, healthcare

The SAC code for most IT and professional services is 998314 or 998313. Your GST invoice software should let you save these codes per service so you do not have to enter them every time.

What Happens If You Send a Non-Compliant GST Invoice?

• Your client cannot claim Input Tax Credit (ITC)
• You may receive notices from the GST department during audits
• Incorrect GSTIN or missing fields can invalidate the entire invoice
• Late or incorrect filing of GSTR-1 attracts penalties

How BillingBee Handles GST Invoicing

1. Add your GSTIN once
Enter your GST Identification Number in your profile. BillingBee validates it automatically. It appears on every invoice you create.

2. Set GST rates per service
Add your services with the applicable GST rate — 0%, 5%, 12%, 18%, or 28%. Save them as items so you can add them to invoices in one click.

3. Automatic CGST/SGST vs IGST calculation
When you add your client state, BillingBee detects whether the transaction is intra-state or inter-state and applies the correct tax split automatically.

4. GST-compliant PDF download
Every invoice generates a clean PDF with all required GST fields — GSTIN, HSN/SAC codes, tax breakdown, place of supply — formatted to meet Indian GST compliance requirements.

5. Razorpay and UPI payment collection
Send a payment link that lets your client pay via UPI, cards, or net banking directly on the invoice.

GST Invoicing for Freelancers Billing International Clients

If you are an Indian freelancer billing clients in the US, UK, or Europe, your exports are zero-rated under GST. You charge 0% GST, can claim a refund on your inputs, and receive payment in foreign currency. BillingBee supports USD, EUR, GBP, and 100+ currencies via Stripe.

Frequently Asked Questions

Do I need to charge GST if my turnover is below 20 lakhs?
No. GST registration is not mandatory below the threshold. However, you can voluntarily register if you want to claim ITC or work with GST-registered clients.

What is the GST rate for software development services in India?
Software development and IT consulting attract 18% GST. The SAC code is typically 998313 or 998314.

Can I create a GST invoice for free?
Yes. BillingBee free plan lets you create GST-compliant invoices with your GSTIN, correct tax calculations, and PDF download.

What is the difference between a tax invoice and a bill of supply?
A tax invoice is issued when GST is applicable. A bill of supply is issued when GST is not applicable — for example, for zero-rated exports.