February 9, 2023
Shreeja Ray

GST Invoicing for Service-Based Businesses: How to Create Invoices

Small businesses must create and use a service invoice template to construct an invoice for services done that gives clients all the information they need to make a payment. Service-based companies depend on receiving consistent payments from customers for their services. Business should make sure that their service invoices have a thorough itemized summary of the services they rendered, their contact information, a specified invoice due date, and the total amount owed on the invoice.

A GST Tax Invoice: What Is It?

The GST statute of the Indian taxation system requires the use of the GST Tax Invoice as a tool. It serves as evidence of the supply made by the company following a transaction. A GST Tax Invoice must be issued for each sale of goods and supplies, according to Section 31 of the CGST Act, 2017. For any sale that exceeds INR 200, the seller is required to provide a GST Tax Invoice.

An instrument that the seller issues to the customer is essentially what a GST Tax invoice is. The information about the buyer and seller is contained in this document. Quantities, descriptions, a list of the products and services sold, transportation prices, delivery methods, payment methods, discounts, and other information are also included.

How to Create a Service Bill

Small firms should adhere to the following guidelines for creating service-based invoices when writing them:

1. Create a template for a service-based invoice.

Every service-based company should create and use a customized invoice template. The template should include the company's branding elements, such as its logo, standard typefaces, and color schemes. The due date, the amount owed, and your company's information should be highlighted in the service invoice template. It should also be straightforward and professional. You can design your own invoice template or utilize a free service invoice template that you can download and use.

2. Provide your company name and contact details.

Include your company logo and clearly state your company name, address, email address, and phone number in the header of your service invoice so that clients may get in touch with you if they have any queries about it.

3. Provide the name and contact information for your client

Your client's name and contact information, including the contact name, business address, phone number, and email address, should come next on your service invoice. It's a good idea to ask your main contact who the best contact is for your service invoices before invoicing a new client for the first time. The billing contact is frequently a different person than the shipping contact, especially with larger businesses.

4. Assign an invoice number for services.

A distinct invoice number that is prominently displayed on the bill should be included with each service invoice you produce. When you need to discuss a specific invoice with a client, you may use the invoice number as a helpful reference. It also makes bookkeeping easier. Letters, numbers, or a combination of the three can be used in invoice numbers.

5. Include on Your Service Invoice the Issuing Date.

On your service invoice, note the date of the invoice. Either include the billing period or specifically state the date on which the invoice was sent. The billing cycle will be determined by the invoicing schedule your company uses. Your billing period could begin on December 1 if you bill customers on a monthly basis.

6. List All Services Offered

An exhaustive itemized account of all the services you rendered for the client throughout the billing cycle should be included on a service invoice. Include a brief description of the service together with the hours worked or the amount delivered next to each service.

List the payscale for each service that was rendered.

Lastly, include the subtotal for each of the mentioned services.

7. Add Any Required Taxes to Your Services

Where your business is located and how your business is set up will have a significant impact on the taxes you charge customers for your services. Small businesses must collect varied amounts of sales tax from different states.


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