On this page

The fields a tax invoice must carry

Whatever software or format you use, these details are expected on a tax invoice for a registered supply:

  • Your business name, address and GSTIN
  • A unique, sequential invoice number and the invoice date
  • Customer name, address and GSTIN where the customer is registered
  • Place of supply, including state name and code for inter-state sales
  • Description of goods or services with HSN or SAC code
  • Quantity, unit, rate, taxable value and any discount
  • Tax rate and amount split into CGST and SGST, or IGST for inter-state supply
  • Total invoice value, and the amount in words where you follow that convention
  • Signature or digital signature of the supplier or an authorised person

Intra-state versus inter-state

The place of supply decides the tax split. Within your own state you charge CGST and SGST at half the rate each. Across states you charge IGST at the full rate. This is the single most common source of corrections, because it is decided by the customer's location rather than by habit.

Good billing software makes this decision for you from the customer's state, so you never toggle it manually.

Numbering that stays clean

Invoice numbers should be sequential and unique within a financial year. Pick one series per branch or per document type and stay with it. Avoid reusing a number after cancelling an invoice — issue a credit note instead.

Mistakes that cost the most time

Four patterns come up again and again in small business books:

  • A wrong or missing GSTIN on a B2B invoice, which blocks your customer's input credit
  • HSN codes left blank on items where they are required
  • Rounding done differently on each line, so totals do not tie back
  • Bills raised on WhatsApp as images with no numbering trail

How Ratify handles it

Ratify Billing proposes the HSN code and tax rate as you type a product name, decides CGST/SGST versus IGST from the place of supply, and keeps numbering sequential. Before a return period closes, Ratify GST flags mismatched GSTINs and missing HSN codes so you fix them while it is still easy.

Common questions

Is a bill of supply the same as a tax invoice?

No. A bill of supply is issued where no tax is charged, such as exempt supplies or by a composition dealer, and it does not show a tax split.

Do I need HSN codes on every invoice?

HSN reporting requirements depend on your turnover, but recording the code on every item is simpler and keeps your GST summaries consistent.

This guide is general information for small businesses in India, not legal, tax or financial advice. For decisions specific to your business, check with your CA.

All articles

Written by

Ratify.ai Team

Practical guides on GST invoicing, receivables, stock control and AI for small businesses in India — written in plain language, no jargon.

Ratify GST

GST that's correct before the deadline, not after.

The right HSN and tax rate on every invoice, clear period summaries, and AI checks that catch mismatches while there's still time to fix them.

Start Free Explore Ratify GST