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To create an interstate GST invoice in India, first determine the legally applicable place of supply under the Integrated Goods and Services Tax (IGST) Act. A supply is generally inter-State when the supplier’s location and the place of supply are in different States or Union territories. Once that test is satisfied, issue a tax invoice showing the applicable tax rate and amount, the place of supply with the State name, and every other Rule 46 particular that applies to the transaction.
The correct tax is not selected merely because a sale crosses a State border. The goods or service classification, recipient status, movement or delivery arrangement, and any special place-of-supply rule determine the treatment. Use the workflow below to prepare an invoice that is complete without assuming a rate or format that the law does not establish for your particular transaction.
What makes a GST supply inter-State?
The starting point is the relationship between two locations:
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- the legally determined place of supply.
When those locations are in different States or Union territories, the supply is generally inter-State under the IGST Act. The place of supply is not always the customer’s billing address. It is determined by the specific statutory rule for the type of goods or service and the way the transaction is carried out.
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For an inter-State taxable supply, the invoice normally shows IGST rather than separately showing CGST and SGST. That conclusion follows only after the place-of-supply analysis. If the supplier and place of supply are in the same State, the transaction may instead be intra-State, subject to the Act’s exceptions and other applicable rules.
Step 1: Collect the facts before opening your invoice template
Write down the facts that control the tax treatment. A reliable invoice begins with transaction data, not with a tax-rate dropdown.
- Supplier’s legal name, address, State and GSTIN.
- What is being supplied: goods, services or a mixed supply.
- Recipient’s name, address, GSTIN or UIN, and registration status.
- Whether goods move, where movement starts, and where it ends for delivery.
- Whether a third party directed the delivery or the arrangement is bill-to/ship-to.
- Whether goods are installed, assembled, supplied without movement, or supplied on a conveyance.
- For services, the service type and whether a special place-of-supply rule could apply.
- Delivery address when it differs from the address used for billing.
- Any discount, abatement, advance, reverse-charge or other fact that changes the taxable value or invoice particulars.
Keep written support for the location and delivery facts. A billing address by itself may not establish the place of supply, particularly for services and special goods transactions.
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Goods involving movement
For goods that move, the general rule places the supply where the movement terminates for delivery to the recipient. Compare that place with the supplier’s location. The rule is about the legally relevant delivery movement, not simply the address printed on a purchase order.
Other goods scenarios have their own provisions. Bill-to/ship-to arrangements, supplies with no movement, installation or assembly at a site, and goods supplied on board a vessel, aircraft, train or motor vehicle can produce a different result. Apply the provision that matches the actual arrangement before deciding whether to charge IGST.
Services supplied when both parties are in India
For services, the general rule is different. When the recipient is registered, the place of supply is generally the recipient’s location. For an unregistered recipient, it is generally the recipient’s location shown in the supplier’s records when that location is available; otherwise, it is generally the supplier’s location.
That is only the general rule. The IGST Act contains special rules for specified services, so identify the service before relying on the general customer-location test. A service connected with a particular property, event, transportation activity or other specially covered situation may use a different place-of-supply provision.
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Record the result
Document the provision and facts used to reach the place-of-supply result. This gives your accounts team a repeatable basis for future invoices and makes it easier to correct an invoice if the delivery or service facts change.
Step 3: Confirm taxability and select the rate
After determining the place of supply, establish whether the supply is taxable and identify the correct classification. Select the rate from the current rate notification for the actual HSN (goods) or Accounting Code for Services (services), including any applicable exemption, concession, composition restriction or other condition.
Do not infer a percentage from the word “interstate.” Inter-State status determines the tax mechanism, but the applicable percentage depends on the specific goods or service and the notification in force for that classification. A general guide cannot calculate a rate for an unspecified transaction.
Where the supply is taxable and inter-State, show IGST at the applicable rate and the resulting amount. If a reverse-charge rule applies, mark the invoice accordingly and follow the separate payment and documentation requirements that apply to that supply.
Step 4: Choose an invoice number and date
Invoice serial number
Use a consecutive invoice serial number that is unique for the financial year. Rule 46 permits one or more series. A series may use letters, numerals, hyphen or slash combinations, provided the numbering remains unique and controlled.
Do not reuse a number, silently skip numbers, or restart a series without maintaining an auditable explanation in your records. If your software supports multiple series for branches or business lines, define the series policy before issuing the first invoice of the year.
Issue date
Enter the actual date on which the invoice is issued. The date must also fit the statutory timing rule for the type of supply, described below. An invoice date that is convenient for bookkeeping cannot override a legal deadline.
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Step 5: Enter every applicable Rule 46 particular
There is no single government-mandated visual layout. You may use a paper or electronic design that presents the particulars required for your transaction. The following checklist covers the fields that commonly apply to an interstate tax invoice.
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|---|---|
| Supplier | Legal name, address and GSTIN. |
| Invoice identity | Unique serial number for the financial year and invoice date. |
| Recipient | Name, address and GSTIN or UIN when the recipient is registered. |
| Unregistered recipient | The recipient and delivery particulars required by the rules for the circumstances of the supply. |
| Classification | HSN code for goods or Accounting Code for services. |
| Goods description | Description, quantity and unit or Unique Quantity Code, where applicable. |
| Values | Total value and taxable value after an applicable discount or abatement. |
| Tax | Tax type, applicable rate and tax amount. For a taxable inter-State supply, this is ordinarily IGST. |
| Place of supply | Place of supply together with the name of the State for an inter-State supply. |
| Delivery | Delivery address when it differs from the place-of-supply or billing details. |
| Reverse charge | An indication when the reverse-charge mechanism applies. |
| Authentication | Signature or digital signature of the supplier or authorised representative where required. |
The place-of-supply field is the key interstate-specific item. State the place of supply and write the State name; do not enter only a State code or a customer’s address without identifying the legal place of supply.
Step 6: Calculate the taxable value and IGST
Taxable value
Start with the value of the actual supply and apply any discount or abatement that is legally allowed to reduce the taxable value. Show enough detail for the recipient to reconcile the line items, taxable value and final amount.
For goods, list each item, quantity and unit, then show the applicable HSN and line value. For services, describe the service and show the relevant Accounting Code. If different items have different rates, separate them into lines or groups so the rate and tax amount can be traced to the correct value.
IGST amount
Apply the current rate for the classification to the taxable value and display both the rate and resulting tax amount. Round figures according to your accounting practice and the applicable rules, keeping the underlying calculation available in your records.
Do not show CGST and SGST merely because the supplier is registered in one State and the customer is registered in another. The tax split follows the place-of-supply result, not the two GSTINs alone. If the legal analysis produces an intra-State supply, use the treatment applicable to that result instead.
Step 7: Meet the invoice timing rules
| Supply type or situation | General timing requirement |
|---|---|
| Taxable goods involving movement | Issue the invoice before or at the time of removal of the goods. |
| Taxable goods without movement | Issue the invoice before or at delivery or making the goods available to the recipient. |
| Taxable services | Generally issue the invoice within 30 days from the date of supply of service. |
| Specified financial suppliers | A 45-day period applies to certain financial suppliers covered by the rules. |
The service deadlines have exceptions, including additional provisions for some supplies between distinct persons and specified supplier classes. Check the rule that applies to your business rather than treating 30 days as universal.
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For goods, coordinate the invoice with dispatch controls. If the vehicle leaves before the invoice is issued in a movement transaction, the timing requirement may not be met even if the invoice is generated later that day.
How to write the place-of-supply line
Use a clear label such as “Place of supply: [legally determined location], [State name].” The bracketed wording is a template instruction; replace it with the actual location before issuing the invoice.
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For example, if the applicable rule places a goods supply in Maharashtra, the invoice should identify the place of supply and state “Maharashtra.” The example illustrates the field, not a conclusion about any particular delivery. Your transaction may produce a different State under the movement, installation, bill-to/ship-to or service rule.
Do not place a State name in this field solely because it appears in the customer’s GSTIN. Confirm that the State is the place of supply under the relevant IGST Act provision.
Electronic and paper invoices
The CBIC/NACIN explanatory material states that there is no prescribed invoice format; instead, the invoice rules make the applicable fields mandatory. Your design can therefore be a PDF, accounting-system printout, or paper document if it contains the required particulars and remains readable and retrievable.
“No prescribed format” does not mean “no prescribed content.” Configure your template so mandatory fields cannot be omitted accidentally, and use separate layouts only when the fields needed for goods, services or unregistered recipients genuinely differ.
E-invoice and other notification-based requirements
E-invoice applicability is not resolved by the fact that a supply is interstate. It depends on the business’s circumstances, turnover thresholds, notified classes, exclusions and the rules in force at the time of issue. Check the current notification and your entity’s status separately before treating a PDF as the complete compliance record.
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The same caution applies to special documentation, transport records, export or zero-rated treatment, and industry-specific requirements. The invoice checklist above does not decide those questions for an unspecified transaction.
Quality-control checklist before issuing the invoice
- Supplier GSTIN and address match the registration from which the supply is made.
- Recipient name, address and GSTIN or UIN are copied accurately; unregistered-recipient details meet the applicable rule.
- Goods or service classification is correct and supported by the current rate notification.
- Place of supply was determined from the IGST Act rule that matches the transaction, not from the billing address alone.
- The State name appears with the place of supply.
- Invoice number is consecutive, unique for the financial year and part of an approved series.
- Invoice date meets the goods or service timing requirement.
- Quantity, unit or Unique Quantity Code appears for goods where applicable.
- Taxable value reflects permitted discounts or abatements.
- Tax type, rate and amount agree with the inter-State or intra-State conclusion.
- Delivery address is shown when different from the place-of-supply or billing address.
- Reverse-charge indicator and signature or digital signature are present when required.
- Any separate e-invoice or notification-based obligation has been checked for the supplier and transaction.
Common mistakes and how to correct the process
Using CGST and SGST because the recipient is in another State
This reverses the decision order. Determine the place of supply first, compare it with the supplier’s location, and then select the tax mechanism. Customer location alone is not a substitute for the statutory test.
Copying the billing State as the place of supply
Billing, delivery and place-of-supply addresses can differ. Recheck movement, installation, bill-to/ship-to and service-specific rules before finalising the State name.
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Inter-State status does not provide a percentage. Verify the HSN or Accounting Code and current notification for each taxable line.
Leaving out the State name
“Place of supply” without the State name is incomplete for an inter-State invoice. Configure the template to display both elements together.
Issuing late for a goods dispatch
For goods involving movement, align invoice creation with removal. A later accounting entry does not change the before-or-at-removal requirement.
Assuming a PDF automatically satisfies e-invoice rules
The absence of a prescribed visual format is different from an exemption from electronic reporting. Check whether the supplier falls within current e-invoice requirements and retain the records required by those rules.
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Worked decision path
- Identify the supplier’s registered location and describe the supply precisely.
- For goods, establish whether movement occurs and where it terminates; for services, identify the recipient status and service category.
- Apply the relevant IGST Act place-of-supply provision, including any special rule.
- Compare the resulting place of supply with the supplier’s location to classify the supply as inter-State or otherwise.
- Confirm taxability, HSN or Accounting Code and the current rate notification.
- Create a unique financial-year invoice number and enter the issue date.
- Populate the applicable Rule 46 particulars, including the State name beside the place of supply.
- Calculate taxable value and tax, then verify timing, reverse charge, signature and any separate e-invoice requirement.
- Issue the invoice and retain the underlying delivery, classification and place-of-supply evidence with the accounting record.
When professional review is sensible
Obtain tax advice or a qualified internal review when the transaction involves multiple delivery locations, a third-party direction, installation, a conveyance, an unregistered recipient with incomplete records, a service covered by a special rule, or uncertainty about taxability and classification. Those facts can change the place of supply, rate, timing or required documentation in ways a generic template cannot resolve.
Rules and notifications can change. Before issuing a live invoice, verify the current CGST and IGST rules, rate notification, and any e-invoice or sector-specific notification that applies on the invoice date.
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