Guides · GST
What is a GST invoice?
A GST invoice — formally a tax invoice — is the document a GST-registered business issues when it makes a taxable supply of goods or services. It records the supply, the tax charged, and the details both sides need to claim input tax credit.
What a GST invoice is
A GST invoice is the tax document a registered supplier issues to a buyer for a taxable supply. It is the buyer's evidence for claiming input tax credit and the seller's record of the tax collected.
Under the GST law a registered person must issue a tax invoice for a taxable supply of goods or services. For an exempt supply, or a supply by a composition dealer, a bill of supply is issued instead of a tax invoice.
What a GST invoice must contain
A GST invoice carries the supplier's name, address and GSTIN; a consecutive invoice number and date; the recipient's details; the HSN code for goods or SAC for services; the description, quantity and taxable value; the tax rate and amount, split into CGST and SGST for an intra-state supply or IGST for an inter-state supply; and the place of supply.
The invoice number must run in a consecutive series, unique for the financial year. Gaps or duplicates in the series are a common source of GST-reconciliation problems.
How Lekha handles GST invoices
Lekha generates GST-compliant delivery challans and tax invoices against a purchase order, with HSN, place of supply, and the right CGST/SGST or IGST split computed live, and gap-free financial-year numbering.
Because the tax fields are computed as you go and the numbering is kept gap-free per financial year, the invoice is correct before it is issued rather than fixed afterward.
Questions
- Is a GST invoice the same as a tax invoice?
- Yes. Under GST, the document a registered business issues for a taxable supply is called a tax invoice. People commonly call it a GST invoice.
- When is a bill of supply used instead of a GST invoice?
- A bill of supply is used for exempt supplies and by composition-scheme dealers, who cannot charge GST separately. It does not show a tax amount.
- Does a GST invoice need an HSN code?
- Yes. A tax invoice must carry the HSN code for goods (or SAC for services). The number of HSN digits required depends on the business's turnover.
This guide is general information, not legal or tax advice. Confirm the current rules and your own circumstances for any specific case.