An invoice is the document that gets you paid, and in India it is also a tax document your client's accountant will check. A missing GSTIN, the wrong tax split or a gap in your numbering can hold up payment for weeks.
Checked on 15 October 2026. Rules and fees change; confirm with your CA or bank.
Which invoice to send
You are | The client is | Send |
|---|---|---|
Registered for GST | In India | Tax invoice with GST (CGST + SGST, or IGST) |
Registered for GST, with a LUT | Abroad | Tax invoice at 0% IGST with the LUT wording |
Not registered | Anywhere | Invoice, no GST |
You may have read that unregistered freelancers should issue a "bill of supply". They should not. A bill of supply is a GST document for registered people whose supplies are exempt or who use the composition scheme. If you have no GSTIN, send a plain invoice. Not sure whether you should be registered? Start with the GST registration playbook.
What a GST tax invoice must show
Rule 46 of the CGST Rules sets out the fields. For a freelancer supplying services, that comes down to this list.
Fields on a tax invoice
0 of 10 done
Rule 48 also asks for a services invoice in two copies, marked "ORIGINAL FOR RECIPIENT" and "DUPLICATE FOR SUPPLIER"; most invoicing tools add this for you.
Add what helps you get paid even though rule 46 does not ask for it: the heading "Tax Invoice", the total in words, your PAN (clients need it for TDS), bank details, the due date, your Udyam number if you have one, and the purchase order number if the client issued one.
Raise the invoice within 30 days of finishing the work, or of each milestone or month for ongoing work.
Numbering
Use one running series per financial year, with no gaps and no duplicates. GST rules allow up to 16 characters made of letters, numbers, hyphens and slashes. Something like RK/26-27/014 works: your initials, the financial year and a three-digit count that restarts on 1 April. If an invoice is wrong after you send it, do not delete the number; issue a credit note and a fresh invoice.
SAC codes for common freelance work
Work | SAC |
|---|---|
Software, app or website development, including web page design | 998314 |
IT consulting and support | 998313 |
Management or business consulting | 998311 |
Graphic, product or interior design | 998391 |
Advertising and campaign services | 998361 |
Event photography and videography | 998383 |
Translation and interpretation | 998395 |
Writing, editing and other work not listed elsewhere | 998399 |
All of these are taxed at 18%. Small taxpayers only have to show four digits on business invoices, but the full six digits cost nothing and avoid questions. Settle your code with your CA once, then keep it the same.
Template: GST invoice to an Indian client
The tax split depends on where the client is. Same state as you: 9% CGST plus 9% SGST. Different state: 18% IGST.
TAX INVOICE Riya Kapoor (trade name: Riya Kapoor Design) 14, 2nd Cross, Indiranagar, Bengaluru 560038, Karnataka GSTIN: 29ABCDE1234F1Z5 | PAN: ABCDE1234F Udyam: UDYAM-KR-03-0012345 (micro enterprise) Invoice no: RK/26-27/014 Date: 31 October 2026 Due date: 15 November 2026 Bill to: Acme Retail Pvt Ltd Plot 7, Andheri East, Mumbai 400069, Maharashtra GSTIN: 27AAACA1234B1Z2 Place of supply: Maharashtra (27) PO no: ACME/PO/2291 | Description | SAC | Amount (₹) | | Website redesign, milestone 2 of 3: approved | 998314 | 50,000.00 | | designs for 8 pages | | | Taxable value 50,000.00 IGST @ 18% 9,000.00 Total 59,000.00 Rupees fifty-nine thousand only Tax payable on reverse charge: No Bank: HDFC Bank, A/c 50100123456789, IFSC HDFC0001234 Please deduct TDS, if applicable, on the taxable value only. For Riya Kapoor Design (signature)
For a client in Karnataka, the same invoice would show "CGST @ 9%: 4,500.00" and "SGST @ 9%: 4,500.00" in place of the IGST line, and the place of supply would be Karnataka (29).
Template: export invoice under LUT
If you are registered and have filed your Letter of Undertaking for the year, your invoice to a foreign client carries no GST but must say why.
TAX INVOICE Riya Kapoor (trade name: Riya Kapoor Design) 14, 2nd Cross, Indiranagar, Bengaluru 560038, Karnataka, India GSTIN: 29ABCDE1234F1Z5 | PAN: ABCDE1234F Invoice no: RK/26-27/015 Date: 31 October 2026 Due date: 14 November 2026 Bill to: Northwind Studio LLC 220 Market Street, San Francisco, CA 94105, United States Country of destination: United States Place of supply: Outside India | Description | SAC | Amount (USD) | | Brand identity: logo system and guidelines | 998391 | 2,000.00 | IGST @ 0% 0.00 Total USD 2,000.00 (INR equivalent at 1 USD = ₹__ on invoice date: ₹______) SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX LUT ARN: AD290326001234X, dated 28 March 2026 Payment: [your Wise, Skydo or bank details for USD] Please choose "OUR" charges on a SWIFT transfer so the full amount arrives. For Riya Kapoor Design (signature)
That endorsement is the wording rule 46 prescribes, SEZ part included; copy it as it is rather than a shortened version. Keep the INR equivalent at the exchange rate on the invoice date, because your GST returns are in rupees. Save the FIRA (the remittance advice from your bank or platform) against this invoice number when the money lands; the cross-border payments playbook explains why.
Template: invoice when you are not registered
No GSTIN, no GST line, and no "Tax Invoice" heading. That is all that changes.
INVOICE Arjun Mehta B-302, Sector 62, Noida 201309, Uttar Pradesh PAN: AAAPM1234K Email: arjun@example.com | Phone: +91 98xxxxxx10 Invoice no: AM/26-27/007 Date: 31 October 2026 Due date: 15 November 2026 Bill to: Brightpath Learning Pvt Ltd Sector 44, Gurugram 122003, Haryana | Description | Amount (₹) | | Eight blog articles (1,200 words each) for | 32,000.00 | | the October content calendar | | Total 32,000.00 Rupees thirty-two thousand only Not registered under GST; no GST charged. Please deduct TDS, if applicable, and share the certificate. Bank: SBI, A/c 30123456789, IFSC SBIN0001234 UPI: arjun.work@oksbi Arjun Mehta
The same format works for foreign clients when you are under the GST threshold: bill in their currency, add their country, and leave out any GST or LUT wording.
Quoting "plus GST" and what TDS does to it
Once you are registered, quote every Indian business client like this:
₹50,000 + 18% GST. Invoices due within 15 days.
Clients assume a bare "₹50,000" includes tax, and you lose ₹7,627 of it (the GST inside ₹50,000) if you let that stand.
Most business clients will also deduct TDS from what they pay you. A CBDT circular issued under the old Income-tax Act says that when GST is shown separately on the invoice, TDS is worked out on the fee alone, not the GST, and clients still follow it. If a client deducts on the full amount, ask your CA. For a professional fee taxed at 10%:
| ₹ |
|---|---|
Fee | 50,000 |
GST at 18% | 9,000 |
Invoice total | 59,000 |
TDS at 10% on the fee | 5,000 |
Paid into your account | 54,000 |
The ₹5,000 is not lost; it is tax credited against your PAN that you claim when you file your return. The TDS playbook covers rates, thresholds and checking Form 26AS. Payment timing, advances and late-payment interest are in deposits and payment terms.
Mistakes that hold up payment
- Leaving out the client's GSTIN, so they cannot claim the input tax credit and send the invoice back
- Charging CGST and SGST to a client in another state (it should be IGST)
- Invoicing a foreign client with 18% GST because the LUT was never filed, or was not renewed in April
- Restarting or skipping numbers mid-year
- Writing "Services rendered" as the description; say what was delivered and for which period
E-invoicing, where invoices are registered on the government portal, starts only above ₹5 crore of turnover, so you can ignore it. For tools, Zoho Invoice, Refrens and Vyapar all produce invoices with these fields; a well-built spreadsheet template works too.
If you only do one thing: open your invoice template and check it against the field list above before you send the next one.
Common questions
Can a freelancer issue an invoice without GST?
Yes, if you are not registered for GST. Title it "Invoice", show your name, address and PAN, the client's details, what you did and the fee, and do not add any GST line. You cannot charge GST without a GSTIN. Once you register, every invoice to an Indian client must be a tax invoice with GST shown separately.
Should an unregistered freelancer issue a bill of supply?
No. A bill of supply is a GST document issued by registered persons who supply exempt goods or services, or who pay tax under the composition scheme. If you are not registered at all, you simply issue an invoice. Calling it a bill of supply suggests you hold a GSTIN, which confuses the client's accounts team.
How should I number my freelance invoices?
Use one running series per financial year, with no gaps and no repeats, for example FIC/26-27/001, FIC/26-27/002. GST rules allow up to 16 characters made of letters, numbers, hyphens and slashes. Start again at 001 on 1 April. You may keep a separate series for export invoices if that helps your records.
Do freelancers need to generate e-invoices?
Almost certainly not. E-invoicing, where each invoice is registered on the government's invoice portal, applies to businesses whose aggregate turnover has exceeded ₹5 crore in any financial year since 2017-18. A freelancer under that limit sends normal PDF invoices.
What SAC code should a freelancer use?
Pick the six-digit code that best describes your service: 998314 for software and website development, 998313 for IT consulting and support, 998391 for specialty design, 998361 for advertising services, 998395 for translation. Writing and other work that fits nowhere else often goes under 998399. Confirm your choice with your CA once and use it consistently.
