A GST invoice from an Indian freelancer must be titled "Tax Invoice" and show your name, address and GSTIN; a unique invoice number of up to 16 characters; the date; your client's name, address and GSTIN; the SAC code and a description of the service; the taxable value; the GST rate and amount, split as CGST + SGST for a client in your state or IGST for a client in another state; the place of supply; whether reverse charge applies; and your signature. Most professional services are taxed at 18%. For services, the invoice must be issued within 30 days of completing the work.
These particulars come from Rule 46 of the CGST Rules, 2017. There is no government-prescribed design: any layout works as long as every applicable field is on it.
Do you even need to charge GST?
- You must register for GST once your aggregate turnover from services crosses ₹20 lakh in a financial year (₹10 lakh in the special category states), or earlier in specific cases. You can also register voluntarily below the limit.
- Not registered? You can't charge GST. Issue an ordinary invoice without any tax, and don't write a GSTIN you don't have.
- Registered? You must issue a tax invoice with GST for every taxable supply, even to clients who aren't registered.
Every mandatory field on a GST invoice
| Section | What to include |
|---|---|
| Title | The words "Tax Invoice" |
| You (supplier) | Name, address and GSTIN |
| Invoice number | Consecutive, unique for the financial year, no more than 16 characters; letters, numbers, hyphens and slashes allowed (e.g. INV/26-27/014) |
| Date | Date of issue |
| Client (recipient) | Name, address and GSTIN if registered. If unregistered and the invoice is ₹50,000 or more, their name, address and state |
| Service | SAC code and a clear description (not just "services") |
| Value | Taxable value after any discount |
| Tax | GST rate and amount: CGST + SGST (intra-state) or IGST (inter-state) |
| Total | Total invoice value |
| Place of supply | The state, with its name, for inter-state supplies |
| Reverse charge | A line stating whether tax is payable on reverse charge (usually "No" for freelancers) |
| Signature | Physical or digital signature of you or your authorised representative |
How many SAC digits? If your aggregate turnover is up to ₹5 crore, a 4-digit SAC is required on invoices to registered businesses (B2B) and optional on invoices to consumers; above ₹5 crore, 6 digits are required. Most consulting, design, IT and professional services fall under SAC heading 9983; confirm your exact code with your CA.
CGST + SGST or IGST? Worked examples
For services to a registered business, the place of supply is generally the client's location. Compare it with your own state:
- Same state → intra-state → charge CGST + SGST (9% + 9% at 18%).
- Different state → inter-state → charge IGST (18%).
Say you're a UI designer in Pune, Maharashtra, billing ₹50,000 for a project at 18%.
| Client in Mumbai (Maharashtra) | Client in Bengaluru (Karnataka) | |
|---|---|---|
| Type | Intra-state | Inter-state |
| Taxable value | ₹50,000 | ₹50,000 |
| CGST @ 9% | ₹4,500 | — |
| SGST @ 9% | ₹4,500 | — |
| IGST @ 18% | — | ₹9,000 |
| Invoice total | ₹59,000 | ₹59,000 |
| Place of supply | Maharashtra (27) | Karnataka (29) |
The total is the same; only the split changes. Charging the wrong one is a real problem: the client can't claim the credit correctly, and the fix is a credit note and a fresh invoice.
Invoicing a client outside India
Services to a client abroad, paid in foreign currency, usually qualify as an export of services, which is zero-rated. Most freelancers file a Letter of Undertaking (LUT) on the GST portal each financial year and then invoice without GST, adding a line such as "Supply meant for export of services under LUT without payment of IGST." Show the value in the foreign currency and keep the bank's foreign inward remittance record for each payment.
Six mistakes that cause trouble
- Restarting or repeating invoice numbers mid-year. Keep one continuous series and start a new one on 1 April.
- Charging IGST to a same-state client, or CGST + SGST to an out-of-state one.
- Missing the client's GSTIN on a B2B invoice, so they can't claim input tax credit.
- Vague descriptions like "professional fees" with no SAC code.
- Invoicing late. For services, issue within 30 days of completing the work.
- Spending the GST. The tax you collect belongs to the government. Set it aside the day you're paid, so filing GSTR-3B isn't a shock.
E-invoicing through the Invoice Registration Portal applies only once aggregate turnover exceeds ₹5 crore, so it doesn't affect most freelancers.
A template that does the tax for you
The GST Invoice & Business Finance Toolkit is a spreadsheet built for Indian freelancers and small businesses. Pick intra-state or inter-state and the tax invoice splits CGST + SGST or applies IGST automatically, with your GSTIN, bank details and invoice numbering entered once. An invoice register tracks every bill, the total GST collected that you need to set aside, and unpaid invoices. It also includes a 12-month cash-flow forecast, a profit and loss sheet and a break-even calculator: 270 live formulas, the current GST rate list, and a worked example on every sheet. Works in Excel and free Google Sheets. One payment of ₹1,999, no subscription, and your client data stays on your device.
Freelancers can get it with the Loan, Tax & Investment Decision Suite free in the Indian Freelancer Money Stack (₹1,999 instead of ₹2,498).
Frequently asked questions
What are the mandatory fields in a GST invoice for freelancers?
The words "Tax Invoice", your name, address and GSTIN, a unique invoice number of up to 16 characters, the date, the client's name, address and GSTIN, the SAC code and description, taxable value, GST rate and amount (CGST + SGST or IGST), total, place of supply, a reverse charge declaration and your signature.
Should a freelancer charge IGST or CGST + SGST?
Charge CGST + SGST when your client is in the same state as you, and IGST when the client is in a different state. For services to a registered business, the place of supply is generally the client's location.
Do freelancers need to register for GST?
Registration is required once aggregate turnover from services crosses ₹20 lakh in a financial year (₹10 lakh in special category states). Below that, registration is optional.
Do I charge GST to a client outside India?
Usually not. Services exported and paid for in foreign currency are zero-rated. Most freelancers file a Letter of Undertaking (LUT) and invoice without IGST, stating that on the invoice.
Is e-invoicing mandatory for freelancers?
Only if aggregate annual turnover exceeds ₹5 crore. Most freelancers are well below this and issue regular tax invoices.
This article is general information, not tax advice. Confirm your registration status, SAC code and filing obligations with a qualified chartered accountant.