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GST invoice format for IT companies and software services

A tax invoice for software development, implementation and support work, with the SAC code, the client's state and the right tax split already laid out. Download it, fill in your figures, or raise it in SimpleERP.

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Filled with the sample shown. The Excel file has formulas for tax and totals.

In short

This is a free GST invoice format for IT companies, in Excel, Word and PDF, with SAC-coded service lines and place of supply. SimpleERP raises it from your saved services and splits CGST, SGST or IGST for you.

Kovai Codeworks Private Limited

GSTIN 33AAJCK4417M1ZC

Tax invoice

INV-2026-27-0142

Bill to: Nandi Auto Components

  • ERP implementation services, phase 1 sign-off1 Nos
  • User training, on site12 Hours
  • Data migration from spreadsheets16 Hours
Grand total₹1,33,340.00

What this document is for

An IT company bills for work, not boxes: a milestone signed off, hours spent on a change request, a month of support. The tax invoice is the document your client's accounts team needs before they release payment and claim input tax credit, so it has to carry the fields GST law asks for, in a layout their AP clerk recognises.

  • Milestone billing for a fixed-price build, one line per phase the client has accepted.
  • Hourly or daily lines for change requests, data migration and on-site training, with the unit shown as Hours or Days.
  • Inter-state clients billed with IGST and the client's state as the place of supply, which is most of the work for a Coimbatore or Pune firm selling to Bengaluru and Mumbai.

What a GST invoice for IT services must contain

CGST Rules rule 46 sets the fields. For a software or IT services invoice the ones that trip people up are the SAC code, the place of supply and the reverse charge statement.

  • Your name, address and GSTIN, and a serial number of up to 16 characters that is unique for the financial year, such as INV-2026-27-0042.
  • The client's name, address and GSTIN, because a registered client cannot claim input tax credit without it.
  • A SAC code on every line, for example 998314 for IT design and development services, rather than an HSN code meant for goods.
  • Place of supply as the client's state name and code, which decides IGST or CGST plus SGST.
  • Taxable value, rate and tax amount per line, with the tax split shown under the totals.
  • Whether tax is payable on reverse charge, usually "No" for software services billed to a business.
  • A signature or digital signature of the supplier or an authorised person.

How to fill the template

The Excel file has formulas in the amount, tax and total columns, so you only type quantities and rates. The sample is filled in so you can see each field in use before you clear it.

  1. Put your details in the header

    The sample is issued by Kovai Codeworks, a fictional Coimbatore software firm. Replace it with your company name, address and GSTIN, and set the invoice number to the next one in your series for the year.

  2. Enter the client and place of supply

    Type the client's legal name, billing address and GSTIN, then the place of supply. The sample client is in Karnataka (29), so the template shows IGST at 18%.

  3. Add one line per piece of work

    Describe the work the way the client's purchase order does, enter the SAC code, the quantity in Hours, Days or Nos, and the rate. The sample bills ERP implementation, training hours and data migration hours.

  4. Check the totals and the words

    The sample's taxable value is ₹1,13,000.00, IGST is ₹20,340.00 and the grand total is ₹1,33,340.00. Read the amount in words against the figure before you send it.

Make it in SimpleERP instead

Save each service once with its SAC code, rate and unit, and every invoice after that is a client, a few lines and Post. The place of supply comes from the client's address, so the tax split is worked out for you.

  • Services as items with SAC 998314 or the code your CA advises, an 18% rate and a unit of Hours, Days or Nos.
  • Place of supply defaults from the client's shipping or billing state, and the invoice picks IGST or CGST plus SGST from it.
  • Fiscal-year numbers such as INV-2026-27-0142, assigned at first save and within the 16-character GST limit.
  • Print on A4 or share a PDF with SAC on every line and a tax summary, then record the payment against it when the client pays.

Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.

A posted tax invoice with SAC codes, place of supply and the tax split.

Fields

Every field on a tax invoice, and why

Rule 46 lists what a tax invoice must carry; services use SAC where goods use HSN. Rule 47 sets the deadline for services: issue the invoice within 30 days of supplying the service.

FieldRequiredWhy
Supplier name, address and GSTINMandatoryIdentifies who supplied the service and whose return the tax goes into.
Invoice numberMandatoryConsecutive, up to 16 characters, unique for the financial year.
Invoice dateMandatoryFixes the tax period the invoice is reported in.
Recipient name, address and GSTINMandatoryA registered client needs its GSTIN on the invoice to claim input tax credit.
SAC code per lineMandatoryServices carry a SAC code, such as 998314 for IT design and development.
Description of the serviceMandatorySays what was delivered, such as a milestone or support for a month.
Quantity and unitIf applicableHours or days when you bill by time; Nos for a milestone.
Taxable value after discountMandatoryThe value tax is charged on.
Rate and amount of CGST, SGST or IGSTMandatoryShown separately so the client can claim each head.
Place of supply with state nameMandatoryRequired for inter-state supplies; decides IGST or CGST plus SGST.
Whether tax is payable on reverse chargeMandatoryA plain Yes or No line; usually No for software services.
Signature or digital signatureMandatoryOf the supplier or an authorised representative.

Source: CGST Rules 2017, rules 46 and 47, verified 10 October 2026.

Common mistakes

Mistakes to avoid on a tax invoice

  • Using an HSN code or a made-up code instead of a SAC code, or one SAC code for development, hosting and support alike.
  • Charging CGST and SGST to a client in another state, or leaving out the place of supply on an inter-state invoice.
  • Leaving the reverse charge line off, so the client's accounts team sends the invoice back.
  • Billing a foreign client in rupees on a domestic tax invoice with GST, instead of an export invoice under a letter of undertaking.
  • Restarting invoice numbers each quarter or per project, which breaks the one series per financial year rule.

Honest limits

What this template and SimpleERP do not cover

Some IT billing needs sit outside both the template and the product today.

  • Export invoices or multi-currency billing for clients abroad. SimpleERP invoices are domestic and in rupees, so LUT exports need another tool.
  • E-invoice (IRN) generation through the government API, which applies once your turnover crosses the e-invoicing threshold.
  • Timesheets or billing straight from tracked hours. You type the hours on the invoice line.
  • TDS computation on what the client deducts from your invoice. Record the receipt net and the TDS with your CA's advice.
  • Recurring invoices that raise themselves for monthly support retainers.
  • Reverse charge indicator as a field: type "Tax payable on reverse charge: Yes" or "No" in the invoice notes

Getting started

From template to your first invoice

  1. Download the format

    Pick Excel if you want the formulas, Word if you edit by hand, or PDF to see the layout.

  2. Replace the sample

    Swap in your details, your client and your lines, and keep the SAC column filled on every line.

  3. Send and keep a copy

    Number invoices in one series for the year and keep every copy, including cancelled ones.

  4. Move it into SimpleERP

    When the spreadsheet gets slow, add your services once in SimpleERP and raise the next invoice there.

FAQ

Questions, answered

Which SAC code goes on a software services invoice?

Most software development and implementation work is billed under SAC 998314, IT design and development services. Support, hosting and consulting have their own codes in the 9983 group, so match the code to what the line actually is. Rates change, so confirm the rate for your goods with your CA or the GST portal before you rely on it.

Do I charge IGST or CGST and SGST to a client in another state?

For services billed to a registered business, the place of supply is usually the client's location. If that state differs from yours, charge IGST; if it is the same, charge CGST and SGST in equal halves. The invoice must show the place of supply with the state name.

Can I bill a foreign client with this format?

No. Exports of services are zero-rated and need an export invoice, usually under a letter of undertaking and in the client's currency. Neither this template nor SimpleERP produces export invoices or multi-currency billing today.

Should hours and days show as quantity on the invoice?

Yes, when you bill by time. Put the hours or days in the quantity column with the unit, and your hourly or daily rate in the rate column, so the client can check the arithmetic against their purchase order or approved timesheet.

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