GST Invoice Rules for Small Businesses, Freelancers & Composition Scheme in India: Mandatory Fields & Timelines

16 Mandatory Fields on a Legal GST Tax Invoice

Under Rule 46 of the CGST Rules, 2017, every registered person issuing a tax invoice must include:

1. Name, address, and GSTIN of the supplier.
2. A consecutive serial number (up to 16 characters, unique for a financial year).
3. Date of issuance.
4. Name, address, and GSTIN / UIN of the recipient (if registered).
5. Harmonized System of Nomenclature (HSN) code for goods or SAC code for services.
6. Description of goods or services.
7. Quantity and unit of measurement.
8. Total value of supply and taxable value after discounts.
9. Rate of tax (CGST, SGST, IGST, or Cess).
10. Amount of tax charged shown separately under respective heads.
11. Place of supply along with the name of the State (for inter-state supply).
12. Whether tax is payable on Reverse Charge basis.
13. Digital or physical signature of the supplier.

Statutory Timelines for Issuing GST Invoices

• For Goods: Must be issued on or before the time of removal of goods for delivery.
• For Services: Must be issued within 30 days from the date of provision of service (45 days for banks and insurance providers).

HSN & SAC Code Turnover Thresholds

• Turnover up to ₹5 Crores: Minimum 4-digit HSN code on B2B invoices.
• Turnover above ₹5 Crores: Mandatory 6-digit HSN code on all B2B and B2C invoices.

Tax Invoice vs Bill of Supply for Composition Dealers

Taxpayers registered under the GST Composition Scheme (Section 10) or selling exempt goods cannot charge GST from customers. They must issue a Bill of Supply with the mandatory mention: "Composition taxable person, not eligible to collect tax on supplies".

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