GST
What a GST tax invoice must show: a checklist for shops
A field-by-field checklist of what Rule 46 requires on a tax invoice, how HSN digits work for small shops, and when you can skip an invoice for small sales.
If you are a regular GST-registered shop, the bill you hand a customer is a legal document. It is called a tax invoice, and the list of what it must show is not a matter of taste. It is set out in Rule 46 of the CGST Rules, 2017.
Most billing software fills these fields in for you. But if your GSTIN is missing from the header, or your serial numbers restart every day, it is your invoice that is wrong, not the software’s. This checklist helps you check one of your own bills in five minutes.
This is general information, not tax advice; confirm with your CA.
Who this applies to
This is for regular registered dealers. If you are in the composition scheme, you do not issue a tax invoice at all. Section 31(3)(c) of the CGST Act says you issue a bill of supply instead. That has its own, shorter list, covered in our composition scheme guide.
If you are not registered for GST, Section 32 of the CGST Act says you must not collect any amount as tax. You give a plain cash memo with no GST on it.
The Rule 46 checklist
Take one printed bill from your counter and tick these off. The letters match the clauses of Rule 46.
| Clause | What the invoice must show | What to check on your bill |
|---|---|---|
| (a) | Your name, address and GSTIN | All three in the header, GSTIN spelt correctly |
| (b) | A consecutive serial number, up to 16 characters, unique for the financial year | Numbers run in order and do not restart daily |
| (c) | Date of issue | Present on every bill |
| (d) | Customer’s name, address and GSTIN, if the customer is registered | Filled in for business buyers who give a GSTIN |
| (e), (f) | For an unregistered customer: name, address, delivery address, State name and code, when the taxable value is ₹50,000 or more, or when the customer asks | Your software lets you add these on big bills |
| (g) | HSN code of the goods | See the HSN section below |
| (h) | Description of goods | Item names a person can read |
| (i) | Quantity and unit | “2 kg”, “6 pcs”, not just a number |
| (j) | Total value of supply | Present |
| (k) | Taxable value after any discount | Discount applied before tax is worked out |
| (l) | Rate of tax: central tax, State tax, integrated tax, UT tax or cess | Rate shown for each tax |
| (m) | Amount of each tax charged | CGST and SGST amounts shown separately |
| (n) | Place of supply with State name, for inter-State supplies | Only matters if you sell across State borders |
| (o) | Delivery address, if different from place of supply | Only for deliveries |
| (p) | Whether tax is payable on reverse charge | Usually “No” for a shop; some bills print it anyway |
| (q) | Signature or digital signature of you or your authorised representative | See the note below |
For a sale within your own State, the tax lines are normally central tax (CGST) and State tax (SGST). Integrated tax (IGST) is for supplies to another State.
The serial number rule
Clause (b) trips up more shops than any other. The number can use letters, digits, a hyphen and a slash. It can run in more than one series, so a shop can use one series per counter, like C1/0001 and C2/0001. But each number must be unique for the financial year, and must not go beyond 16 characters.
What does not work: restarting at 1 every morning, or reusing a number after a bill is cancelled.
The signature note
Clause (q) asks for a signature. A proviso to Rule 46 says the signature is not needed when the invoice is an electronic invoice issued in line with the Information Technology Act, 2000. Whether your printed counter bills count as that is a question for your CA.
How many HSN digits do you need?
The first proviso to Rule 46 lets the government notify how many HSN digits each class of business must show. Notification No. 78/2020-Central Tax, in force from 1 April 2021, sets this by your aggregate turnover in the previous financial year:
| Previous year’s aggregate turnover | HSN digits on the invoice |
|---|---|
| Up to ₹5 crore | 4 |
| More than ₹5 crore | 6 |
The same notification adds a relief for smaller businesses. If your turnover was up to ₹5 crore, you may skip the HSN digits on tax invoices for supplies to unregistered persons, which covers most walk-in customers.
So a typical kirana under ₹5 crore needs 4-digit HSN codes on bills to registered business customers, and can leave them off ordinary counter bills. Showing HSN on every bill anyway does no harm, and keeps your product list consistent. Check the current notification with your CA before relying on these figures, since they can change.
Do you need a tax invoice for every small sale?
Not always. Section 31(3)(b) of the CGST Act says a registered person may not issue a tax invoice if the value is less than ₹200, subject to conditions.
Rule 46 sets those conditions:
- the customer is not registered, and
- the customer does not ask for an invoice.
If you use this, you must issue one consolidated tax invoice at the close of each day covering all such sales.
In practice most shops with billing software simply print a bill for every sale, which is the simpler habit. But it helps to know the rule exists, and that it has a daily consolidation condition attached. Skipping small bills without the end-of-day invoice is not what the law allows.
What about e-invoices?
Clauses (r) and (s) of Rule 46 deal with e-invoicing: a QR code carrying an Invoice Reference Number (IRN) for businesses above the turnover limit notified under Rule 48(4), or a declaration where such a business is not required to issue one. The turnover limit is set by notification, so check the current figure, and whether it applies to your bills, with your CA.
If your business is above it, your billing software needs to support IRN, or you need a separate tool for it.
Five mistakes to look for on your own bill
- GSTIN missing or wrong in the header.
- Serial numbers that restart daily or repeat across counters.
- One “GST 5%” line instead of separate CGST and SGST amounts.
- Discount shown after tax, so the taxable value is wrong.
- No GSTIN field for business customers who need it to claim input tax credit.
How Bazaar IQ handles this
Bazaar IQ is a billing app that prints GST tax invoices for regular dealers, with the HSN code attached to each product once and the CGST/SGST split worked out at billing time. Composition shops get a Bill of Supply with the required composition line and no tax lines, and unregistered shops a plain cash memo. It does not generate e-invoices (IRN) or e-way bills. If you need those, it will not cover you on its own. Details are on the GST features page, and you can try it in the demo.
Whatever you use, print one bill, sit down with this table, and take it to your CA if anything is missing.