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🇮🇳GST 18%

India GST & E-Invoicing Guide for Businesses (2026)

GST rates, GSTIN, HSN codes, and mandatory IRP e-invoicing — the complete guide

Last updated: 30 April 2026 · Written by the Hisabi team

TL;DR, the key facts

  • GST has four main rates: 5%, 12%, 18%, and 28%. Most services fall under 18%. Registration is mandatory when annual turnover exceeds ₹20 lakh (₹10 lakh for special category states).
  • E-invoicing (IRP) is mandatory for businesses with annual aggregate turnover above ₹5 crore. Invoices must be registered on the Invoice Registration Portal and carry an IRN and QR code.
  • Every GST invoice must include your 15-digit GSTIN, HSN/SAC code, and show CGST/SGST or IGST breakdowns separately.
  • Monthly GSTR-1 (outward supply) and GSTR-3B (summary return) filings are standard for most registered businesses.

What you need to know

Indiatax & invoicing, covered

GST

India GST Rates & Registration

GST is a dual system — Central GST (CGST) + State GST (SGST) for intra-state, or Integrated GST (IGST) for inter-state supply. Rates vary by goods/services. Mandatory registration at ₹20 lakh annual turnover.

  • Mandatory registration: ₹20 lakh annual aggregate turnover (₹10 lakh for special category states)
  • GST rates: 0%, 5%, 12%, 18%, 28% — check HSN/SAC code for applicable rate
  • Composition scheme available for businesses below ₹1.5 crore (pays fixed % turnover, no ITC)
  • GSTIN is a 15-character alphanumeric identifier based on PAN
E-Invoicing

IRP E-Invoicing Mandate

Businesses with annual aggregate turnover above ₹5 crore must generate invoices on the Invoice Registration Portal (IRP), which validates them, assigns an Invoice Reference Number (IRN), and returns a digitally signed QR code.

  • Mandatory for annual turnover above ₹5 crore (from August 2023)
  • Invoices must be uploaded to IRP within 30 days of invoice date
  • IRP returns IRN + QR code — both must appear on the physical/digital invoice
  • Non-compliant invoices are invalid for ITC claims by the buyer
Invoicing

GST Invoice Mandatory Fields

A GST tax invoice must include GSTIN, HSN/SAC code, and show tax components clearly. For IRP-registered businesses, the IRN and QR code are also mandatory.

  • Supplier GSTIN and recipient GSTIN (if registered)
  • HSN code (for goods) or SAC code (for services)
  • Taxable value and applicable GST rate
  • CGST + SGST or IGST amount shown separately
  • Place of supply (state code) for inter-state invoices

Timeline

Key compliance dates

  1. July 2017

    GST launched in India, replacing multiple indirect taxes.

  2. October 2020

    IRP e-invoicing mandatory for businesses with turnover above ₹500 crore.

  3. August 2023

    IRP e-invoicing threshold lowered to ₹5 crore annual aggregate turnover.

GST and invoicing compliance

Frequently asked questions: India

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Most professional services (consulting, IT, marketing) fall under 18% GST. Some services like healthcare, education, and exports are exempt or zero-rated. Always check the SAC (Services Accounting Code) for your specific service category on the GSTN portal.

IRP e-invoicing requires businesses above ₹5 crore annual turnover to upload B2B invoices to the Invoice Registration Portal before delivery. The IRP validates the invoice, assigns an IRN (Invoice Reference Number), and returns a digitally signed QR code — both must appear on your invoice. If your buyer is GST-registered, they cannot claim ITC without a valid IRN.

GSTIN is a 15-character GST Identification Number assigned upon GST registration. The first 2 digits are your state code, digits 3–12 are your PAN, digit 13 is entity number, digit 14 is 'Z', and digit 15 is a check digit. Register on the GST portal (gst.gov.in) with your PAN, Aadhaar, and business documents.

₹20 lakh annual aggregate turnover for most states. ₹10 lakh for special category states (northeast states, Uttarakhand, Himachal Pradesh). For e-commerce sellers, registration is mandatory regardless of turnover.

Most registered businesses file GSTR-1 (outward supplies, monthly or quarterly) and GSTR-3B (monthly summary return with tax payment). Quarterly filers under the QRMP scheme file GSTR-1 quarterly but pay tax monthly via PMT-06. Annual return GSTR-9 is due by December 31 of the following financial year.

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