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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsFor India, a GST-registered supplier making a taxable supply generally issues a tax invoice. A registered supplier making an exempt supply, or a registered person using the composition scheme, generally issues a bill of supply instead. A person who is not registered under GST must not collect an amount as GST.
Your status is not decided by the words “freelancer” or “small business.” Registration liability, the type of supply, the recipient, the place of supply and any special notification determine which document and fields apply. For taxable services, the normal invoice deadline is 30 days from the date of supply.
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Which GST document should you issue?
Start with two questions: are you registered under India’s Goods and Services Tax, and is the supply taxable? The answer determines whether you issue a tax invoice, a bill of supply or no GST tax document.
| Situation | Document | What to show or avoid |
|---|---|---|
| Registered supplier making a taxable supply | Tax invoice | Show the applicable GST rate and tax amount, along with the particulars required by Rule 46. |
| Registered supplier making an exempt supply | Bill of supply | Identify the supply and value, but do not charge GST as a tax on the document. |
| Registered person paying tax under the composition scheme | Bill of supply | Do not present GST as tax collected on a tax invoice. |
| Person not registered under GST | No GST tax invoice | Section 32(1) of the CGST Act prohibits collecting an amount as GST. Other commercial documents may still be needed for the sale or service. |
Registration and document rules can change with turnover, state, supply type, inter-State transactions, e-commerce activity and exceptions. Treat the table as a document-choice framework, not as a substitute for checking the rule that applies to your facts.
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Tax invoice particulars under Rule 46
Rule 46 of the Central Goods and Services Tax Rules lists the particulars for an invoice issued under section 31. Some fields are conditional rather than universal. A template that prints every field for every transaction can still be wrong if it applies a goods-only or recipient-specific requirement indiscriminately.
Supplier and invoice identity
- Supplier name, address and GSTIN: Use the legal identity and GST registration details of the supplier making the supply.
- Invoice serial number: Use a consecutive, unique number in one or more series for the financial year. Rule 46 describes a maximum of 16 characters. Keep the sequence auditable; do not reuse numbers within the same financial year.
- Date of issue: State the date on which the invoice is issued. This is distinct from the service or delivery date where those dates differ.
Recipient details
- Registered recipient: Include the recipient’s name, address and GSTIN or UIN.
- Unregistered recipient receiving a supply of ₹50,000 or more: Include the recipient’s name and address, plus the delivery address and state code.
- Unregistered recipient below ₹50,000: Record those recipient and delivery details when the recipient asks for them. The low-value rule does not let you omit details after a customer has requested an invoice.
What was supplied
- HSN or accounting code: Use the HSN code for goods or the applicable accounting code for services.
- Description: Describe the goods or services clearly enough to identify the supply.
- Quantity and unit: State quantity and the relevant unit or unique quantity code for goods. This field is not a universal requirement for a service invoice.
Value and tax calculation
- Total value and taxable value: Show the total and the taxable amount, taking account of any discount or abatement that applies.
- Tax rate and tax amount: State each applicable GST rate and the corresponding amount. The rate and amount belong on a tax invoice for a taxable registered supply; a bill of supply does not charge tax in this manner.
- Reverse-charge indication: Mark whether tax is payable on a reverse-charge basis. Do not assume that the customer, rather than the supplier, is responsible without checking the transaction’s classification.
Place of supply and authentication
- Place of supply: For an inter-State supply, include the state name. If the delivery address differs from the place of supply, include that delivery address as required.
- Signature: Include the supplier’s signature or authorised representative’s signature, or a digital signature where applicable. Electronic-invoice rules and other provisions can affect how authentication is handled.
These particulars work together. For example, a service provider should not copy a goods invoice that contains a meaningless quantity field, while a goods seller should not omit quantity and unit information merely because a generic service template omitted them.
When a bill of supply is the correct document
A bill of supply is used by a registered supplier for an exempt supply and by a registered person paying tax under the composition scheme. It identifies the supplier, document number and date, recipient details where applicable, the HSN code for goods or accounting code for services, a description and the value.
Unlike a tax invoice, a bill of supply does not present a GST rate and tax amount as tax collected from the customer. A composition taxpayer therefore cannot use a tax invoice to show GST separately. If a transaction contains both taxable and exempt elements, determine the correct treatment for each supply rather than issuing one document that obscures the distinction.
Invoice deadlines for services and low-value transactions
General service deadline
For a taxable service, the general rule is to issue the invoice within 30 days from the date of supply of the service. Plan the invoice process around the supply date, not merely around when the customer pays.
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Specified 45-day period
CBIC describes a 45-day period for specified suppliers such as insurers, banking companies and financial institutions, with additional special rules for certain supplies between distinct persons. That longer period is not a general extension for ordinary freelancers, consultants or small agencies.
Supplies below ₹200
CBIC’s FAQ describes a narrow exception for a supply valued below ₹200. A registered supplier may omit an individual tax invoice only when the recipient is unregistered and does not ask for an invoice. In that case, issue a consolidated invoice at the close of the day. If the recipient requests an invoice, issue it even when the transaction is below ₹200.
The exception concerns whether an individual invoice may be omitted; it does not turn a taxable sale into a non-taxable sale, and it does not authorise an unregistered supplier to collect GST.
Registration status: why turnover alone is not enough
CBIC’s FAQ describes a general service-provider registration threshold of ₹20 lakh and ₹10 lakh for specified special-category states. Those figures are useful orientation, not a universal answer for every taxpayer today. Later notifications, state rules, supply-specific exceptions and the treatment of inter-State or e-commerce supplies can change the result.
Before deciding that you are unregistered, check:
- your state or Union Territory and whether a special-category rule applies;
- aggregate turnover, rather than a single client’s fee or one month’s receipts;
- whether you make inter-State supplies;
- whether you sell through an e-commerce operator or fall within another compulsory-registration category;
- whether the supply is goods, services, exempt, zero-rated or otherwise subject to a special rule; and
- whether a current notification changes the ordinary threshold or creates an exception.
A freelancer can therefore be required to register even when the person’s own description is “small,” while another business may remain outside registration subject to the applicable conditions. Confirm the current position through official CBIC or GST Portal guidance or a qualified GST practitioner.
E-invoicing: check the current notified scope
E-invoicing is separate from the basic question of what particulars a GST invoice contains. The applicable threshold, covered taxpayer classes, exemptions and implementation dates are set by notifications and can change. The material available for this guide does not establish a current threshold or a complete exemption list for every business.
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Do not rely on an old turnover figure or assume that a normal PDF invoice is sufficient. Check the current notified e-invoice scope and exceptions for your turnover, registration type, sector and transaction before choosing a workflow. If e-invoicing applies, follow the prescribed process in addition to keeping the Rule 46 particulars accurate.
A practical invoice workflow
- Confirm registration status. Verify the GSTIN, registration type and whether the supply is made in the course of business. If you are not registered, do not add a GST line described as tax.
- Classify the supply. Decide whether it is taxable or exempt, and whether any composition, reverse-charge, export, inter-State or other special treatment applies.
- Choose the document. Use a tax invoice for a registered taxable supply. Use a bill of supply for an exempt supply or composition-scheme supply.
- Identify the customer. Capture the customer’s GSTIN or UIN when registered. For an unregistered customer, apply the ₹50,000 recipient-detail condition and record requested details below that value.
- Assign the next serial number. Keep a consecutive series unique for the financial year and within Rule 46’s stated 16-character maximum.
- Enter the supply details. Add the description, HSN or service accounting code, and quantity and unit when goods are supplied.
- Calculate the values. Show total value, taxable value after relevant discounts or abatements, tax rate and tax amount. Check whether tax is payable under reverse charge.
- Complete place-of-supply fields. For an inter-State supply, state the place-of-supply state and add the delivery address when it differs from that place.
- Authenticate and issue on time. Add the required signature or digital signature treatment and issue a service invoice within 30 days unless a specific rule gives you another period.
- Retain the transaction trail. Keep the issued document, numbering sequence, customer data, calculations and evidence supporting the classification so that the invoice can be reconciled with your books and returns.
Worked situations for freelancers and small businesses
Registered freelance designer providing a taxable service
The designer issues a tax invoice with the supplier GSTIN, serial number, issue date, client details, service description, service accounting code, taxable value, applicable rate and tax amount, place-of-supply information and reverse-charge indication where relevant. The invoice should normally be issued within 30 days of the service supply.
Registered consultant making an exempt supply
The consultant issues a bill of supply, not a tax invoice charging GST. The document still identifies the supplier and transaction and states the description, applicable code and value.
Composition-scheme service provider
The provider issues a bill of supply and does not show GST as tax collected on a tax invoice. The customer’s accounting treatment should not be based on a separately charged GST amount that the composition scheme does not permit the supplier to present.
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Unregistered independent contractor
The contractor must not add a line labelled GST or collect an amount as GST. Whether registration is required must be checked separately using current thresholds, state rules, supply type and compulsory-registration provisions.
Small retail sale to an unregistered consumer
For a transaction below ₹200, the registered supplier may use the narrow consolidated-invoice exception only when the recipient does not request an individual invoice. A request from the customer removes that option.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Common mistakes and how to correct the process
Using a tax invoice for every transaction
Tax invoices are not the universal document for all registered persons. Exempt supplies and composition-scheme supplies generally require a bill of supply. Configure separate document types in your accounting system.
Charging GST before confirming registration
A person who is not registered cannot collect an amount as GST under section 32(1) of the CGST Act. Confirm the registration position before quoting a tax-inclusive price or adding tax to an invoice.
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The often-cited threshold does not resolve state differences, inter-State supplies, e-commerce transactions or compulsory-registration exceptions. Treat it as an initial question, not a final decision.
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Omitting conditional fields
Recipient details, quantity, delivery address and place-of-supply information depend on the transaction. Review the conditions rather than deleting those fields from every template or forcing them into every service invoice.
Missing the service deadline
Set an internal approval date before the 30-day limit and distinguish the date of supply from the payment date. Do not assume that the 45-day rule for specified financial-sector suppliers applies to a freelancer.
Reusing invoice numbers
Maintain a single controlled sequence, or clearly controlled series, for each financial year. Reusing a number makes it difficult to prove which document was actually issued and can disrupt reconciliations.
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Pre-issue checklist
- India is the relevant GST jurisdiction and the supplier’s registration status is confirmed.
- The transaction is classified as taxable, exempt, composition-related or subject to another special treatment.
- The selected document is a tax invoice or bill of supply for that classification.
- Supplier name, address and GSTIN are correct.
- Serial number is consecutive, unique for the financial year and within the stated 16-character limit.
- Issue date and service-supply timing are checked.
- Customer GSTIN or UIN, or the required unregistered-recipient details, are captured.
- HSN or service accounting code and a clear description are present.
- Quantity and unit are included for goods.
- Total value, taxable value, discounts or abatements, tax rate and tax amount are calculated correctly.
- Place of supply, state name and any different delivery address are entered where required.
- Reverse-charge status is marked.
- Signature or digital-signature treatment and any applicable e-invoice process are completed.
What remains fact-specific
Invoice fields are only one part of GST compliance. Current registration liability, e-invoice applicability, tax rates, HSN or service-accounting-code classification, exports, reverse charge and special transaction rules can depend on facts and subsequent notifications. If your transaction crosses state borders, involves an e-commerce operator, combines taxable and exempt elements or uses a special scheme, obtain current official guidance or professional advice before issuing a batch of invoices.
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