How to Create a GST Invoice
Online Free in India (2026)
Whether you run a shop, provide services, or work as a contractor — if you're GST-registered, every sale needs a proper GST invoice. This guide explains what must be on the invoice, how to calculate the tax, and how to create one for free in under two minutes.
What Is a GST Invoice?
A GST invoice is a document that a GST-registered supplier issues to a buyer when selling goods or services. It is not just a receipt — it is a legal document that enables the buyer to claim Input Tax Credit (ITC), which reduces their own GST liability.
If you issue an invoice that is missing mandatory fields, your buyer cannot claim ITC — and they will either refuse to pay or ask you to reissue. Getting your invoice format right from day one saves you time, disputes, and potential penalties.
Mandatory Fields on Every GST Invoice
| Field | Why It's Required |
|---|---|
| Supplier's name, address & GSTIN | Identifies the seller; required for buyer's ITC claim |
| Invoice number (unique, sequential) | Mandatory for GST filing; must not repeat in a financial year |
| Invoice date | Determines the tax period for filing |
| Recipient's name, address & GSTIN | Required for B2B supplies; enables buyer's ITC |
| Place of supply (state) | Determines whether CGST+SGST or IGST applies |
| HSN / SAC code for each item | Classifies goods/services for GST rate determination |
| Description, quantity & unit price | Core invoice content |
| Taxable value per line item | Base amount before tax |
| GST rate and tax amount (CGST, SGST or IGST) | Mandatory tax breakdown — do not show as a single 'GST' figure |
| Total amount (including GST) | Final payable amount |
| Signature / digital signature of supplier | Required for the invoice to be legally valid |
CGST vs SGST vs IGST — Which Applies?
| Tax Type | When It Applies | Example |
|---|---|---|
| CGST + SGST | Intra-state supply (same state) | Karnataka seller → Karnataka buyer: 9% CGST + 9% SGST = 18% GST |
| IGST | Inter-state supply (different states) | Karnataka seller → Maharashtra buyer: 18% IGST |
| IGST | Exports | Seller ships goods abroad: 0% IGST (or with refund claim) |
Common GST Rates to Know
| GST Rate | Common Goods / Services |
|---|---|
| 0% | Essential food items, books, unprocessed agricultural goods |
| 5% | Some food items, economy class travel, essential medicines |
| 12% | Construction services (works contract), processed food, some fabrics |
| 18% | Most services (consulting, IT, professional services), electronics, paints |
| 28% | Luxury goods, cement, ACs, automobiles |
Note: Construction services (works contracts) are typically taxed at 12% GST. Always verify the rate for your specific HSN/SAC code before billing.
Create Your First GST Invoice in 2 Minutes — Free
Balaji Invoice handles all of this automatically. Add your GSTIN, enter line items, and it applies the correct tax split, calculates totals, and generates a print-ready PDF — all free, no subscription required.
- Sign up free at balajibuilds.com/invoice — just phone and email, no credit card
- Add your business name, GSTIN, and logo once
- Save your products/services with HSN codes and prices
- Select a client, add line items — GST splits automatically
- Print PDF or share via WhatsApp in one click
Frequently Asked Questions
Is it mandatory to issue a GST invoice for every sale in India?
Yes, if you are a GST-registered business, you must issue a GST invoice for every taxable supply of goods or services. For supplies to unregistered buyers below ₹200 per transaction, you may issue a consolidated invoice at end of day. For exports, a tax invoice with IGST details is mandatory.
What is the difference between a GST invoice and a regular invoice?
A regular invoice is just a bill. A GST invoice has mandatory additional fields: your GSTIN, the buyer's GSTIN (for B2B), HSN/SAC code for each item, and separate breakup of CGST, SGST, or IGST. Without these fields, the invoice is not GST-compliant and your buyer cannot claim Input Tax Credit (ITC).
Can I create a GST invoice for free without buying any software?
Yes. Balaji Invoice at balajibuilds.com/invoice is completely free — no subscription, no credit card, no hidden charges. You can create unlimited GST invoices, manage clients, track payments, and download PDF invoices at no cost.
