GST Invoice Format for Services: SAC Codes, 18% Rate & Key Rules
If you provide services — IT, consulting, design, legal, healthcare, or any other — your GST invoice has specific requirements that differ from goods invoices. The biggest differences: SAC codes instead of HSN, no quantity/unit field, and specific rules around place of supply for services. This guide covers everything service providers need.
By Arjun Sharma· GST & Tax Compliance Specialist···Reviewed for GST accuracy
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How Service Invoices Differ from Goods Invoices
Field
Goods Invoice
Services Invoice
Product/service code
HSN code (4 or 6 digits)
SAC code (6 digits, starts with 99)
Quantity field
Required (Nos, Kg, Litre, etc.)
Not required
Unit of measurement
Required
Not required
Time of issue
At time of removal/delivery
Within 30 days of service (45 for banks)
Place of supply
Delivery location of goods
Usually recipient's state
Common SAC Codes for Service Businesses
Service Type
SAC Code
GST Rate
Software development
998314
18%
IT consulting
998313
18%
Management consulting
998311
18%
Legal services
998212
18%
Accounting/CA services
998222
18%
Graphic design
998381
18%
Photography/videography
998386
18%
Architecture/engineering
998311
18%
Advertising/marketing
998361
18%
Training/coaching
999293
18%
Event management
998554
18%
Security services
998523
18%
Important
Most professional services attract 18% GST. Healthcare, education, and a few others are exempt. Always verify your specific SAC code on the GST portal.
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For services, place of supply is generally the state of the registered recipient (for B2B) or the state of the supplier (for B2C). Some services have special rules:
Service Type
Place of Supply Rule
General B2B services
Location of registered recipient
General B2C services
Location of supplier
Immovable property services
Location of property
Performance-based services (concerts, events)
Where event is held
Telecom services
Home location of subscriber
Online information services (B2C)
Location of recipient
Sample GST Invoice for a Service Provider
A UI/UX designer in Bengaluru (Karnataka) invoices a Mumbai startup (Maharashtra) for ₹75,000 worth of design work.
Example
Supplier: Priya Design Studio, Bengaluru. GSTIN: 29XXXXX. Client: TechStart Mumbai. GSTIN: 27XXXXX. SAC: 998381 (Graphic design). Taxable Value: ₹75,000. Place of Supply: Maharashtra (recipient state). Tax: IGST 18% = ₹13,500. Invoice Total: ₹88,500. Note: IGST is applied because supplier is in Karnataka and place of supply is Maharashtra — interstate.
Time of Issuing Service Invoice
Service invoices must be issued within 30 days of the date of supply of service. For banking companies and financial institutions, the limit is 45 days. For continuous supply of services (like monthly retainers), the invoice must be issued on or before each payment due date or the date of payment, whichever is earlier.
Advance Receipts for Services
If you receive an advance payment before delivering the service, you must issue a Receipt Voucher at the time of advance. This is not a tax invoice. When the service is completed, issue the final tax invoice and adjust the advance amount. If the service never happens, issue a Refund Voucher.
Important
Receiving an advance without issuing a Receipt Voucher is non-compliant. The receipt voucher triggers GST liability on the advance amount.
FAQs
Do I need quantity and unit on a service invoice?
No. Quantity and unit of measurement are not required on service invoices. Just the description of service, taxable value, SAC code, and applicable GST.
What is the GST rate for most services?
Most professional services attract 18% GST (CGST 9% + SGST 9% or IGST 18%). Some services like restaurant (5%), transport (5%), and healthcare/education (0%) have different rates.
If I provide services outside India, is GST applicable?
Export of services is zero-rated under GST. If you provide services to a foreign client and payment is received in foreign currency, you can issue the invoice without GST (under LUT) or claim a refund of GST paid.
How does GST apply to software-as-a-service (SaaS)?
SaaS is classified as an OIDAR (Online Information and Database Access or Retrieval) service. For B2B, the recipient pays GST under reverse charge. For B2C supplies to Indian consumers from abroad, the foreign supplier must register in India and pay GST.
Can a freelancer with less than ₹20 lakh turnover charge GST?
No. If your annual turnover is below the GST registration threshold (₹20 lakh for most states, ₹10 lakh for special category states), you cannot collect GST. You issue a regular invoice without any GST.
Why Businesses Stop Using Excel for GST Invoices
Manual GST calculation mistakes
One wrong CGST/SGST split or a misapplied rate triggers notices and ITC denial for your buyer.
Slow invoice creation
Copying last month's Excel file, updating dates, recalculating — 20 minutes for what should take 30 seconds.
Formatting breaks on every device
Excel invoices look different on every printer and PDF converter. Clients complain about unreadable layouts.
No easy sharing or payment link
Sending PDFs over WhatsApp with no way for clients to pay directly slows down collections.
Incorrect tax type (IGST vs CGST+SGST)
Excel can't auto-detect intra vs inter-state supply. Wrong tax type = ITC rejected for your buyer.
Disclaimer: The information in this article is for general informational purposes only and does not constitute professional tax, legal, or financial advice. GST rules and rates are subject to change. Consult a qualified CA or tax professional before making compliance decisions.
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