GST invoices for online sellers in India: a plain guide
CGST, SGST and IGST, what a tax invoice must show, B2B invoices with the buyer’s GSTIN, credit notes and GSTR-1, explained for people who sell online.
· 7 min read
Which tax applies: CGST, SGST or IGST
GST on a sale depends on where it is supplied. When the buyer is in the same state as you, the tax is split into CGST and SGST. When the buyer is in another state, it is IGST. For an online order, the place of supply is usually the delivery address.
If you ship from warehouses in different states with a GSTIN for each, the invoice is issued under the GSTIN of the warehouse the order ships from.
What a tax invoice shows
A GST tax invoice carries, among other things:
- Your name, address and GSTIN
- A unique invoice number in a consecutive series for the financial year
- The date
- The buyer’s name and address, and their GSTIN if they are registered
- The place of supply
- HSN codes, quantities, taxable value, tax rates and the tax amounts
B2B orders
A registered business buying from you can claim input tax credit only if their GSTIN is on the invoice. Let business buyers add their GSTIN and business name at checkout, and check the GSTIN’s format so typos are caught.
Refunds, advances and returns
When you refund an invoiced order, issue a credit note against the original invoice rather than editing it. If you take payment before the goods exist, such as a pre-order, that is an advance: issue a receipt voucher, then the tax invoice when it ships.
At month end, your sales go into GSTR-1. Exporting it from your invoices saves your CA from retyping them.
How Koomerce does it
The GST invoices app turns orders into tax invoices, credit notes, receipt and refund vouchers in your own number series, with the CGST/SGST or IGST split worked out for you, and exports GSTR-1. Every business is different, so check registration and rates for your products with your CA.