GST-compliant invoicing for Indian freelancers — the practical guide

If your annual turnover crosses ₹20 lakh (₹10 lakh for special-category states) you're required to register for GST and charge it on every invoice thereafter. Freelance service exports (invoicing a client outside India) can qualify as zero-rated supply and are GST-exempt but require different paperwork (LUT filing). Below the threshold, you can voluntarily register for GST — often worth it if your clients are businesses who want the input tax credit.

Every GST invoice legally must show: (1) Your name, address, and GSTIN. (2) The client's name, address, and GSTIN if they're a registered business. (3) A unique sequential invoice number (no gaps) with a prefix and running number, per financial year. (4) The invoice date. (5) HSN or SAC code for each item (SAC for services). (6) Description, quantity, unit price. (7) Taxable value (subtotal after discounts). (8) CGST + SGST rates and amounts (for intra-state supply) OR IGST rate and amount (for inter-state supply). (9) Total amount payable, in words and figures. (10) Place of supply — the state where the recipient is located. Billune renders all of these automatically once your Business Profile + Client are set up correctly.

If your registered business is in Karnataka and your client is also in Karnataka: charge CGST 9% + SGST 9% (two rows on the invoice — one for the Central portion, one for the State portion). Total GST = 18% but split into two labelled lines.

If your registered business is in Karnataka but the client is in Maharashtra: charge IGST 18% (one row). No CGST/SGST at all. IGST is what the Central government charges on inter-state transactions.

Billune's tax rows support both. For intra-state, add two rows named 'CGST' and 'SGST' at 9% each. For inter-state, add one row named 'IGST' at 18%. The invoice renders each as its own line — a common requirement.

Most freelance and consulting services fall under SAC 9983 (business support services) at 18% GST. Software / IT services (SAC 9973) are also 18%. Graphic design, writing, photography, video — all typically 18%. There are lower-rate categories (5% and 12%) but they're the exception for pure services. When in doubt, 18% is the safe default for a freelance service — but confirm the specific SAC code with your CA.

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 — often your own state.

If you invoice a Bangalore-based business from a Bangalore-registered account → intra-state → CGST/SGST.

If you invoice a Mumbai-based business from your Bangalore-registered account → inter-state → IGST.

If you invoice a US company that has no India establishment → export of services → potentially zero-rated (but requires LUT/bond).

If you invoice certain government departments or specific registered persons, the reverse charge mechanism may apply — the RECIPIENT is liable to pay the GST directly to the government, not you. This is rare for pure freelancing but does happen — 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 if a client claims reverse charge applies.

1. Skipping the invoice number sequence. Even if you drafted and cancelled an invoice, the number still counts — gaps in the sequence are a red flag in audits. Billune reserves numbers only on save to avoid this.

2. Forgetting the client's GSTIN. Without the client's GSTIN on the invoice, they can't claim input tax credit. They'll ask you to reissue, or worse, they'll pay the invoice but silently blacklist you.

3. Wrong place of supply. Charging CGST/SGST when you should charge IGST (or vice versa) means the taxes flow to the wrong government pool. Your client can't claim ITC properly, and you'll need to reissue.

4. Missing HSN/SAC. Legally required for turnover above ₹5 crore, best-practice for everyone. Add SAC 9983 (or your service's actual code) to every line item description if your accountant asks — Billune's line item description field accepts this.

5. Not issuing an invoice within the time limit. For services, an invoice must be issued within 30 days of the service being supplied. Longer than that and you're technically non-compliant.

Do these three things in Billune once, 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 9% + SGST 9% for intra-state, or IGST 18% for inter-state. That's it. The invoice PDF renders every required field automatically.