How to Create GST Invoice for Small Business in India — Free Generator

What is a GST invoice?

A GST (Goods and Services Tax) invoice is a legal document that a registered GST business issues to its customers when selling goods or services. It must contain specific information as per GST rules — without these, the invoice is not valid for input tax credit claims.

When do you need a GST invoice?

If your business is registered under GST (turnover above Rs 40 lakh for goods, Rs 20 lakh for services in most states), you must issue a GST invoice for every sale. If you’re not registered (below the threshold), you issue a “bill of supply” instead — which doesn’t show tax separately.

Key components of a valid GST invoice

A proper GST invoice must include: your GSTIN (GST Identification Number), invoice number and date, customer’s name and address (and GSTIN if B2B), description of goods/services, quantity and unit price, taxable value, tax rate and amount (CGST + SGST or IGST), total amount, and place of supply.

CGST vs SGST vs IGST — explained simply

• CGST + SGST: Used for sales within the same state. Both are split 50-50. If GST rate is 18%, you charge 9% CGST + 9% SGST.
• IGST: Used for sales across state borders. The full GST rate is charged as IGST. If GST rate is 18%, you charge 18% IGST.

How to create a free GST invoice

MakeFreeWebsite’s Invoice Generator handles all these calculations automatically. Enter your business details, customer details, and line items — the tool calculates CGST/SGST/IGST based on the tax rate you select and whether the sale is inter-state or intra-state.

Create free GST invoice →

Invoice numbering best practices

Number invoices sequentially (INV-001, INV-002) and never repeat a number. Keep copies of all invoices for at least 6 years as required by GST law. Most businesses use a format like FY2526/001 to include the financial year.

Composition scheme businesses

If you’re under the GST composition scheme, you cannot charge GST separately on your invoice. Instead, issue a “Bill of Supply” — our generator supports this with the “Composition Dealer” option.

Generate your invoice for free →