How to Create a GST Invoice
as a Freelancer in India

1. Mandatory Fields in a GST Invoice

Under GST law (Rule 46 of CGST Rules), a tax invoice from a registered supplier must include:

• Name, address, and GSTIN of the supplier (you)
• Consecutive invoice number (max 16 characters — alphanumeric + slashes/dashes)
• Invoice date
• Name, address, and GSTIN of the recipient (for B2B)
• Place of supply (state where the client is located)
• HSN/SAC code for the service
• Description of service
• Taxable value (amount before GST)
• Rate and amount of CGST + SGST, or IGST
• Total invoice value (taxable + GST)
• Signature or digital signature

2. CGST/SGST vs IGST — Which to Charge?

The rule is simple: it depends on where you are registered vs where your client is located.

Place of supply for services: For most freelance services (design, development, writing, consulting), the place of supply is the location of the service recipient (client's state). If client is unregistered (individual/consumer), it's the location where the service is performed (your state).

3. SAC Codes for Freelancers

SAC (Service Accounting Code) identifies the type of service for GST purposes. All freelance services are under Chapter 99.

4. TDS — What to Do When Clients Deduct 10%

Corporate clients (companies and firms) are required to deduct TDS @ 10% under Section 194J (professional fees) before paying you. Here's how to handle it:

On your invoice

Add a note at the bottom of your invoice:

"TDS @ 10% under Section 194J to be deducted by the payer on the taxable value (₹[amount before GST]). TDS is not applicable on the GST component."

How the math works

Say you invoice ₹50,000 + 18% GST = ₹59,000 total. The client will:

• Deduct TDS of ₹5,000 (10% of taxable value ₹50,000)
• Pay you ₹59,000 − ₹5,000 = ₹54,000
• Deposit ₹5,000 to the government on your behalf

You report the full ₹59,000 as income and claim credit for the ₹5,000 TDS against your advance tax liability using Form 26AS / AIS.

5. Export Invoices (Foreign Clients)

If your client is outside India, you're exporting services. Under GST, export of services is zero-rated — you charge 0% GST. But you have two options:

Your export invoice must include:

• Mark it clearly: "SUPPLY MEANT FOR EXPORT WITHOUT PAYMENT OF IGST"
• LUT/Bond number (from your GST portal filing)
• Client's name and country
• Currency (USD, EUR, etc.) with INR equivalent at invoice date
• Bank details for wire transfer or SWIFT code

6. Reverse Charge Mechanism (RCM)

RCM flips who pays GST — instead of you (supplier) collecting and remitting GST, the recipient (client) pays it directly. As a freelancer this rarely applies to you, except:

• If you're unregistered and providing services to a registered business: the business pays GST on your behalf under RCM. You don't charge GST. The business gets ITC on this.
• If you use foreign platforms (AWS, Google Ads, Upwork, Fiverr): you may need to pay GST on those invoices under RCM if no GST is charged by them.

7. Sample GST Invoice Layout

8. Common Mistakes to Avoid

• Wrong invoice numbering: Numbers must be consecutive and reset each financial year (e.g., INV-2026-001). Random numbering can trigger scrutiny.
• GST on TDS base: TDS is deducted on the taxable value only, not on GST. Never include GST in TDS calculation.
• Charging GST when unregistered: If your annual turnover is under ₹20 lakh, you cannot register for GST and cannot collect GST. Doing so is illegal.
• Missing place of supply: This determines IGST vs CGST/SGST. Always include it explicitly.
• Issuing invoice late: For services, invoice must be issued within 30 days of service completion. Late invoicing can result in ITC denial for your client.
• No GSTIN on inter-state B2B invoice: For B2B inter-state supplies, both GSTINs are mandatory. Without the recipient's GSTIN, they cannot claim ITC.
• Incorrect SAC code: While not a showstopper, an incorrect SAC can cause mismatches during client ITC filing. Use the table above to pick the right code.
• Not filing GSTR-1: As a registered taxpayer, file GSTR-1 monthly (or quarterly if opted for QRMP). Your clients depend on your filings to claim ITC.