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How to Create GST Invoice Online in 5 Simple Steps

Complete guide to creating GST-compliant invoices online. Free templates, step-by-step instructions, and expert tips included.

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Last updated: November 2024 • 15 min read • GST Compliant

1. What is a GST Invoice?

A GST invoice is a legal document issued by registered suppliers under the Goods and Services Tax (GST) system in India. It serves as proof of sale and enables input tax credit claims for businesses.

Key Features of GST Invoice:

  • Contains supplier and buyer GSTIN details
  • Includes HSN/SAC codes for goods/services
  • Shows detailed tax breakup (CGST, SGST, IGST)
  • Enables input tax credit for businesses

2. Mandatory Fields Required in GST Invoice

Supplier Information

  • Company Name & Address
  • GSTIN Number
  • State Name & Code
  • Contact Details

Buyer Information

  • Customer Name & Address
  • GSTIN (if registered)
  • State Name & Code
  • Place of Supply

Invoice Details

  • Invoice Number & Date
  • HSN/SAC Codes
  • Item Description & Quantity
  • Unit Price & Total Value

Tax Information

  • GST Rate (5%, 12%, 18%, 28%)
  • CGST & SGST or IGST
  • Total Tax Amount
  • Final Invoice Amount

3. Step-by-Step GST Invoice Creation Process

1

Set Up Your Company Details

Enter your business information including company name, address, GSTIN, and contact details. This information will appear on all your invoices.

Required Information:
  • • Legal business name as per GST registration
  • • Complete business address with pincode
  • • 15-digit GSTIN number
  • • State name and state code
2

Add Customer Information

Input your customer's details including name, address, and GSTIN if they are registered. For unregistered customers, enter their address and state.

Customer Details:
  • • Customer name (individual or business)
  • • Billing address with state and pincode
  • • GSTIN (if registered) or mention "Unregistered"
  • • Place of supply for tax calculation
3

Enter Product/Service Details

Add items with descriptions, HSN/SAC codes, quantities, and unit prices. The system will calculate totals automatically.

Item Information:
  • • Product/service name and description
  • • HSN code for goods or SAC code for services
  • • Quantity and unit of measurement
  • • Unit price and total amount before tax
4

Calculate GST and Total Amount

Select the appropriate GST rate and let the system calculate CGST, SGST, or IGST based on the place of supply.

Tax Calculation:
  • • Choose GST rate: 0%, 5%, 12%, 18%, or 28%
  • • Intra-state: CGST + SGST (9% + 9% for 18% GST)
  • • Inter-state: IGST (18% for 18% GST rate)
  • • Final amount = Taxable value + GST amount
5

Generate and Download Invoice

Review all details, generate the GST invoice, and download as PDF. You can also email or share via WhatsApp directly.

Final Steps:
  • • Review all entered information for accuracy
  • • Generate invoice with unique invoice number
  • • Download PDF or share electronically
  • • Save customer and product details for future use

Watch Complete Video Tutorial

See how to create GST invoices step-by-step in our detailed video guide

Step-by-step process
Common mistakes
Expert tips

4. Understanding GST Tax Calculations

Intra-State Supply (CGST + SGST)

Example: ₹10,000 at 18% GST
Taxable Amount: ₹10,000
CGST (9%): ₹900
SGST (9%): ₹900
Total Amount: ₹11,800

Inter-State Supply (IGST)

Example: ₹10,000 at 18% GST
Taxable Amount: ₹10,000
IGST (18%): ₹1,800
CGST: ₹0
SGST: ₹0
Total Amount: ₹11,800

GST Rate Guide

Common GST Rates:
  • • 0% - Essential items (milk, vegetables)
  • • 5% - Household necessities
  • • 12% - Processed foods, computers
  • • 18% - Most goods and services
  • • 28% - Luxury items, automobiles
Tax Type Based on Supply:
  • • Same state: CGST + SGST
  • • Different state: IGST only
  • • Union Territory: CGST + UTGST
  • • Export: 0% with IGST refund

5. Common Mistakes to Avoid

Incorrect GSTIN Format

Using wrong GSTIN format or entering invalid numbers.

Solution: Always verify GSTIN is 15 characters: 2 digits (state) + 10 digits (PAN) + 1 digit + 1 letter + 1 letter/digit

Wrong HSN/SAC Codes

Using incorrect or outdated HSN/SAC codes for products/services.

Solution: Verify codes from official GST portal. Use minimum 4-digit HSN for goods, 6-digit SAC for services

CGST/SGST vs IGST Confusion

Applying CGST+SGST for inter-state or IGST for intra-state transactions.

Solution: Same state = CGST+SGST. Different state = IGST only

Missing Invoice Serial Number

Not maintaining sequential invoice numbering or using duplicate numbers.

Solution: Use sequential numbering format: INV-2024-001, INV-2024-002, etc.

6. Compliance Best Practices

Record Retention

Maintain all GST invoices and records for minimum 6 years as per GST law. Store both physical and digital copies securely.

Timely Filing

File GSTR-1 by 11th of next month. Ensure all invoices are uploaded to GST portal within due dates to avoid penalties.

E-Invoicing

Businesses with turnover >5Cr must generate e-invoices through IRP portal. Obtain IRN and QR code for each invoice.

E-Way Bill

Generate e-way bill for goods movement >50,000. Required for inter-state transport and some intra-state movements.

7. Free Online Tools to Create GST Invoices

Try FreeGSTBill Invoice Generator

Create professional GST invoices in seconds - No signup required

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GST Invoice Generator

Create GST-compliant invoices with automatic tax calculations

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Non-GST Invoice

Generate simple invoices without GST for unregistered businesses

Create Invoice →

Quotation Generator

Create professional quotations and convert to invoices

Generate Quote →

8. Frequently Asked Questions

Can I create GST invoices without GST registration?

No, you need a valid GSTIN to issue GST invoices. However, you can create non-GST invoices for your business transactions if you're not registered.

Is it mandatory to mention HSN/SAC codes?

Yes, HSN codes (for goods) and SAC codes (for services) are mandatory on GST invoices. Use minimum 4-digit HSN for goods and 6-digit SAC for services.

What is the difference between CGST, SGST, and IGST?

CGST (Central GST) and SGST (State GST) apply to intra-state transactions and are split equally. IGST (Integrated GST) applies to inter-state transactions and includes the full tax amount.

How long should I keep GST invoice records?

GST law requires maintaining all invoice records for a minimum of 6 years from the end of the financial year. Keep both digital and physical copies.

Can I edit a GST invoice after generation?

Once issued, GST invoices should not be edited. If corrections are needed, issue a credit/debit note or create a revised invoice with proper documentation.

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