GST Invoicing Demystified: What Every Indian Freelancer Needs to Know
Let’s be honest: GST paperwork can feel overwhelming. Between HSN codes, tax slabs, and compliance requirements, many talented freelancers avoid taking on bigger clients just to skip the paperwork.
But what if you could master GST invoicing in under 10 minutes? Here’s everything you need to know, minus the confusing jargon.
The Non-Negotiable GST Invoice Elements
Think of these as your invoice’s “must-have” ingredients:
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Your business name, address, and GSTIN
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Client’s name, address, and GSTIN (if registered)
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HSN/SAC codes for your services
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Separate CGST, SGST, or IGST calculations
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Invoice number and date
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Place of supply (crucial for determining IGST vs CGST/SGST)
Common GST Mistakes That Cost You Money
I’ve seen brilliant designers and developers make these simple errors:
Mistake #1: Using the wrong tax type
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Within state: CGST + SGST
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Between states: IGST only
Mistake #2: Forgetting HSN codes
Even if you’re below the threshold, adding HSN codes makes you look professional and helps client accounting.
Mistake #3: Incomplete client details
Always ask for your client’s GSTIN upfront—it saves revision headaches later.
When Do You Actually Need GST Registration?
The magic number is ₹20 lakh annual turnover (₹10 lakh for special category states). But here’s the secret: many freelancers register voluntarily because:
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It makes them look more professional
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They can claim input tax credit
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Larger companies prefer working with GST-registered vendors