GST Invoice Format for Freelancers and Service Providers (with SAC Codes)

Do you need GST registration as a freelancer?

For services, registration becomes compulsory when your aggregate turnover in a financial year crosses ₹20 lakh. In Manipur, Mizoram, Nagaland and Tripura the limit is ₹10 lakh. The same limit applies even if your clients are in other states.

Below the limit, you can still register voluntarily. Some freelancers do, because large companies prefer vendors who charge GST (the company gets the GST back as input tax credit). Once you register, you must charge GST on your taxable services and file returns, even in months with no work.

Working with clients outside India is a separate case. Exports of services are zero-rated under GST, usually under a Letter of Undertaking (LUT), and they come with foreign-currency rules. Talk to your CA before your first foreign invoice.

What your invoice must show

If you are registered under GST

• Your name (or business name), address and GSTIN
• A unique invoice number (up to 16 characters) and the invoice date
• The client's name, address and GSTIN (if registered)
• A description of the service and its SAC code
• The taxable value, the GST rate and the GST amount, split as CGST + SGST or IGST
• The total, and the place of supply with the state name if it is in another state
• Your signature or "Authorised Signatory"

Also useful, though not required: your PAN, the client's purchase order or project reference, the due date, and your bank account and UPI details.

If you are not registered

Issue a simple bill with your name, address, PAN, a bill number, the date, the client's name, a description of the work and the amount. Do not add GST, and do not call it a "tax invoice". Many freelancers add a line such as "Not registered under GST" so the client's accounts team does not ask.

Common SAC codes for freelancers

Most professional and IT services are taxed at 18%. Confirm the code for your exact service on the GST portal's free HSN/SAC search.

Our guide on how to find HSN and SAC codes covers the search step by step.

Place of supply for services

For goods, the place of supply is usually where the goods are delivered. For most services it works like this:

• Client is a registered business: the client's registered location.
• Client is an individual or unregistered: the client's address on your records, or your own location if you have no address.

Some services follow special rules: work related to a building or land, events, training and a few others. If your work is one of those, check with your CA. Then compare the place of supply with your own state, as explained in CGST, SGST and IGST: which one goes on your bill.

Filled example: a web developer's invoice

Ananya is a registered web developer in Pune, Maharashtra. She builds a website for a registered company in Bengaluru, Karnataka, for ₹40,000.

What about TDS? Many business clients deduct TDS on professional fees, often 10% of the fee for professional services and 2% for technical services, once a yearly threshold is crossed. When GST is shown separately on the invoice, TDS is worked out on the fee before GST. Here the client deducts 10% of ₹40,000, which is ₹4,000, and pays Ananya ₹43,200. She claims the ₹4,000 in her income tax return. You do not need to show TDS on the invoice, but a note helps avoid confusion. Check the current rates and thresholds with your CA.

Tips that get freelancers paid on time

• Put the due date on the invoice. "Payable within 15 days" works better than nothing.
• Add the client's PO or project number if they gave one. Big companies route invoices by it.
• Bill each milestone when it is done, not all at the end of a long project.
• Keep one numbering series, such as INV/26-27/0001. See the GST invoice number rules.

Making service invoices in BillBabu

BillBabu works for services as well as goods. Add each service you sell to your catalogue as a service with its SAC code, GST rate and a unit such as Hour. Add your client as a party with their GSTIN and state. When you make the invoice, BillBabu fills in the SAC code and rate, works out CGST + SGST or IGST, and prints your bank details on the PDF, which you can share on WhatsApp or email.

To be clear about what it does not do: BillBabu does not calculate TDS, make recurring invoices or bill in foreign currency. For a single invoice without installing anything, use our free GST invoice generator in your browser. If you are registering for the first time, our GST registration guide walks through the steps.

GST rules and rates checked on 4 October 2026, under the GST 2.0 rates in force since 22 September 2025. Rates can depend on the exact item, its price or its packing, so confirm your item in the CBIC rate notification or with your CA.

Frequently asked questions

Can I charge GST if I am not registered?

No. Only a registered person can charge GST. An unregistered freelancer issues a bill without GST.

What GST rate applies to freelance services?

Most professional, IT, design and consulting services are taxed at 18%. Check the SAC code for your exact service.

Do I need to register for GST to work with clients in other states?

Not below the turnover limit. A service provider with turnover up to ₹20 lakh (₹10 lakh in the four special category states listed above) does not need to register just because clients are in other states.

Should I show TDS on my invoice?

It is not required. Your invoice shows the fee and the GST. The client deducts TDS when paying and gives you a TDS certificate. A short note on the invoice can help avoid questions.

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Bill your services with the right SAC code and GST. BillBabu is a GST billing app for Android, with a web app at app.billbabu.com. Make GST invoices and estimates, share them as PDFs and see who still owes you money. Every account starts with a 14-day free trial, and you do not need a card. Get BillBabu on Google Play or see plans and prices.