GST-compliant invoicing for Indian freelancers — the practical framework

When do you need to charge GST?

There's a turnover threshold above which GST registration becomes mandatory (lower for special-category states). Freelance service exports to clients outside India can qualify as zero-rated supply but require different paperwork. Below the threshold you can voluntarily register — often worth it if your clients are businesses who want the input tax credit. Confirm your threshold and your obligations with a CA.

The fields that must appear on a GST invoice

Every GST invoice legally must show: your name, address, and GSTIN; the client's name, address, and GSTIN if they're a registered business; a unique sequential invoice number with no gaps; the invoice date; the HSN or SAC code for each item (SAC for services); description, quantity, unit price; the taxable value after discounts; the CGST + SGST breakdown for intra-state supply OR the IGST line for inter-state supply; the total amount payable in both words and figures; and the place of supply.

CGST + SGST vs IGST — the intra-state vs inter-state rule

If your registered business and your client are in the same state, you charge CGST + SGST as two labelled rows on the invoice — one for the Central portion, one for the State portion.

If your registered business is in one state and the client is in another, you charge IGST as a single row. No CGST/SGST at all. IGST is what the Central government charges on inter-state transactions.

Billune's tax rows support both — add two rows for intra-state, one row for inter-state. The invoice renders each as its own labelled line.

Place of supply — the rule most people get wrong

Place of supply determines whether it's intra-state or inter-state. For B2B services (your client is a registered business), place of supply is the recipient's registered address. For B2C services to an unregistered individual, place of supply is generally where the service is delivered.

Invoice a business in the same state as your registered address → intra-state → CGST/SGST.

Invoice a business in a different state → inter-state → IGST.

Invoice a foreign company with no India establishment → export of services → potentially zero-rated, but requires additional paperwork.

Reverse charge — when the client pays GST instead of you

For certain government departments and specific registered persons, the reverse charge mechanism may apply — the recipient pays the GST directly to the government, not you. It's rare for pure freelancing. If it applies, your invoice must explicitly note 'Tax to be paid on reverse charge basis' and you don't add GST to the total. Confirm with your CA before assuming reverse charge applies.

Common mistakes to avoid

Skipping the invoice number sequence. Even a drafted-and-cancelled invoice counts — gaps are a red flag in audits.

Forgetting the client's GSTIN. Without it on the invoice, they can't claim input tax credit — they'll ask you to reissue.

Wrong place of supply. Charging the wrong tax structure means it flows to the wrong government pool. Your client can't claim ITC properly.

Missing HSN/SAC codes. Required above certain turnover, best-practice for everyone.

Not issuing the invoice within the required time window. Every jurisdiction sets a limit — miss it and you're technically non-compliant.

Setting Billune up correctly for GST

Three one-time steps and every future invoice is compliant: (1) Settings → Business Profile → set your GSTIN, business address including state, and country = India. (2) Every Client → save their GSTIN and state. (3) On each invoice, use the Taxes section — add CGST + SGST for intra-state, or IGST for inter-state. The invoice PDF then renders every required field automatically.