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GST invoice check for a small seller: rates, split and the rule 46 fields

Confirm which document you should issue, fix each line's HSN code and rate, pick CGST plus SGST or IGST from the place of supply, work the tax line by line, then check the fields rule 46 asks for. One printable page holds the check.

By Bulan Sarkar · Updated

5% / 18%the two main GST slabs since 22 Sep 2025
4 or 6HSN digits, by turnover up to or over ₹5 crore
₹50,000B2C sale: buyer's name, address and state needed
16characters at most in the invoice number
Quick answer

Before a tax invoice goes out, check five things: you are a regular registered seller (a composition seller issues a bill of supply and charges no GST); every line has its HSN code (4 digits if last year's turnover was up to ₹5 crore, 6 above that) and its current rate, mostly 5% or 18% since 22 September 2025; the split follows the place of supply, CGST + SGST when it is in your own state and IGST when it is in another; tax is worked on the value after any discount shown on the invoice; and the fields in rule 46 are there. Example: ₹9,000 of 5% goods after a 10% discount plus ₹25,000 of 18% goods to a buyer in your state gives CGST ₹2,475, SGST ₹2,475 and a total of ₹38,950.

Source: CGST Rules, 2017, rule 46, checked Oct 2026. Numbers only, not tax advice. The arithmetic and the fields follow the official rules; classification and your returns settle the final tax.

The decision: check your GST invoices yourself?

Do it yourself

Yes, if you are a regular GST-registered seller, you sell goods or services inside India, and you raise your own invoices by hand, in a spreadsheet or in billing software.

Skip it

If you are under the composition scheme, you issue a bill of supply and charge no GST, so there is no tax line to check. If you are not registered, you cannot charge GST at all.

Get help

Ask a chartered accountant for exports and SEZ sales, reverse charge supplies, bill-to-ship-to deliveries across states, sales through an e-commerce operator that collects tax, a rate classification you are unsure of, or any notice about your invoices.

The steps, in order

1Document type2HSN and rate3The split4Line by line5Rule 46 fields

  1. Confirm which document you should issue

    Have ready:your GST registration certificateyour scheme: regular or compositionwhether the buyer is registered

    A regular registered seller issues a tax invoice and charges GST on it. A composition seller issues a bill of supply under rule 49 and charges no tax, because a composition seller may not collect tax from the buyer (section 10(4) of the CGST Act). If the buyer gives you a GSTIN, the invoice carries it; if not, it is a B2C sale and some fields change (step 5).

  2. Fix the HSN code and the rate for every line

    Have ready:last year's aggregate turnoverthe HSN or SAC code of each itemthe rate schedule of 17 September 2025

    Up to ₹5 crore of turnover in the previous year, a tax invoice shows a 4-digit HSN code; above ₹5 crore it shows 6 digits (Notification 78/2020-Central Tax). Up to ₹5 crore, a B2C invoice may leave the code out. Take the rate from the schedules in Notification 9/2025-Central Tax (Rate), in force from 22 September 2025: 5% and 18% for most goods, 40% for a short list, and 3%, 1.5% and 0.25% for gold, diamonds and precious stones. The 57th GST Council meeting on 8 October 2026 left rates unchanged.

  3. Pick CGST + SGST or IGST from the place of supply

    Have ready:your GSTIN (first two digits: your state code)the delivery addressthe buyer's state and state code

    Compare your state with the place of supply. For goods you deliver, the place of supply is usually where the delivery ends; for a counter sale, it is your shop. Same state: charge CGST and SGST, half the rate each (CGST and UTGST in a union territory without a legislature). Different state: charge IGST at the full rate. Write the place of supply with the state name on inter-state invoices. The total tax is the same either way; only the heads differ.

  4. Work the tax line by line

    Have ready:quantity and unit price of each lineany discount you are giving on this invoicethe rate of each line

    For each line: quantity times price, minus any discount shown on the invoice, gives the taxable value (section 15(3)(a) of the CGST Act). Tax is the taxable value times the rate, split as step 3 decided. Add the lines rate by rate, then round the invoice total to the nearest rupee and show the round-off line. Our GST calculator takes up to 20 lines, applies the discount before tax and prints the rate-wise summary.

    Open the GST Calculator

  5. Check the rule 46 fields, then issue and record it

    Have ready:your invoice series for the yearbuyer's GSTIN, or name and address for a B2C sale of ₹50,000 or morethe worksheet

    Rule 46 lists what a tax invoice must show. The ones most often missed: an invoice number of up to 16 characters, unique for the financial year; the buyer's GSTIN; for an unregistered buyer and a value of ₹50,000 or more, the buyer's name, address, delivery address and state with its code; the place of supply on inter-state sales; whether tax is payable on reverse charge; and a signature (not needed on an electronic invoice). If your turnover in any year since 2017-18 crossed ₹5 crore, B2B invoices also need an e-invoice reference (IRN) and QR code. Report the same figures in GSTR-1 for the period.

One invoice, two lines: where the GST comes fromLine 1 GST, 5% of ₹9,000₹450Line 1 GST before discount (wrong)₹500Line 2 GST, 18% of ₹25,000₹4,500Invoice GST, both lines₹4,950₹4,950 total GST
One invoice, two lines: where the GST comes from. Line 1: 40 units at ₹250 with 10% off on the invoice, 5% rate. Line 2: 2 units at ₹12,500, 18% rate. Tax on line 1 is worked on ₹9,000, not ₹10,000. Working it before the discount (grey bar) would overcharge the buyer by ₹50.
Same invoice, two buyers: the split changes, the total does notBuyer in Jodhpur (08): same stateCGST: ₹225 + ₹2,250 = ₹2,475SGST: ₹225 + ₹2,250 = ₹2,475IGST: nilTotal: ₹38,950orBuyer in Pune (27): other stateCGST: nilSGST: nilIGST: ₹450 + ₹4,500 = ₹4,950Total: ₹38,950The place of supply decides the heads; the GST is ₹4,950 either way.
Same invoice, two buyers: the split changes, the total does not. Seller in Jaipur (GSTIN starts 08, Rajasthan). Taxable value ₹34,000 in both cases: ₹9,000 at 5% and ₹25,000 at 18%. Green marks the heads charged.

What goes wrong

Tax is worked before the discountA discount shown on the invoice comes off the value first. Tax on the full price overcharges the buyer, and the GSTR-1 figures will not match the buyer's books.
CGST + SGST goes on an inter-state sale (or IGST on a local one)The tax lands in the wrong head. Fixing it means paying the right head and claiming the wrong one back under section 77 of the CGST Act, so check the state codes before the invoice goes out.
The billing template still lists 12% or 28%Those slabs went on 22 September 2025 (28% stayed for tobacco and pan masala until 31 January 2026). Re-map every item in the software to its current rate.
The invoice number repeats or runs past 16 charactersRule 46 needs a consecutive number, unique for the financial year. Start a fresh series or prefix each April and keep separate series per branch or counter.
A B2C bill of ₹50,000 or more has no buyer detailsFor an unregistered buyer at that value, rule 46 needs the name, address, delivery address and state with its code. Collect them at the counter before you print the bill.

Variants: what changes the steps

You are under the composition scheme

Issue a bill of supply, not a tax invoice, and charge no GST on it. The rate and split steps do not apply; the serial number, date and buyer details still do.

The buyer is in another state, or orders online

Goods delivered to another state carry IGST at the full rate, and the place of supply goes on the invoice with the state name. If one party orders and the goods go to someone else's address, ask a CA which state counts.

You or the buyer are in a union territory

Chandigarh, Ladakh, Lakshadweep, Andaman and Nicobar, and Dadra and Nagar Haveli and Daman and Diu use CGST + UTGST for sales inside the territory. Delhi, Puducherry and Jammu and Kashmir have legislatures and use CGST + SGST.

Your turnover crossed ₹5 crore

B2B invoices then need an e-invoice reference (IRN) and QR code from the portal, and HSN codes go to 6 digits. B2C invoices keep the 6-digit code too, because the B2C exemption from HSN applies only up to ₹5 crore.

Tips and tricks

  • Read the first two digits of the buyer's GSTIN before you choose the split. They are the state code, and a wrong split takes a refund claim to undo.
  • Put the discount on the invoice itself as its own column. A discount given later works through a credit note with its own conditions.
  • Keep one invoice series per counter or branch and add the year to the prefix, such as JPR/26-27/0001. That stays well inside 16 characters.
  • After any GST Council meeting, check your billing software's rate list against the latest rate notification, not against last year's invoices.
  • Run the month's invoices through the GST calculator's rate-wise summary and compare it with GSTR-1 before you file.

What we would do

We would set up the HSN code and current rate for each item once in the billing software, put the discount on the invoice as its own column, and check the buyer's state code before every B2B invoice. Then we would keep the one-page checklist next to the billing counter for the first month and tick it for each new buyer. Classification questions, exports and reverse charge go to a chartered accountant; this page stops at the arithmetic and the fields.

Free kit page

Print the working copy

GST invoice check: working copy, from the GST Invoice Check Kit 2026-27. One A4 page with tick boxes and blanks; it prints in black and white.

Print the working copy

  • 1. Document
  • 2. HSN and rate
  • 3. Split
  • 4. Lines
  • 5. Rule 46 fields

Frequently asked questions

What are the GST rates on an invoice in 2026?
Mostly 5% and 18%, with 40% for a short list of goods and 3%, 1.5% and 0.25% for gold, diamonds and precious stones, under Notification 9/2025-Central Tax (Rate) from 22 September 2025. The 57th GST Council meeting on 8 October 2026 did not change rates.
How do I know whether to charge CGST + SGST or IGST?
Compare your state with the place of supply. If both are in the same state, charge CGST and SGST at half the rate each. If they differ, charge IGST at the full rate. The first two digits of a GSTIN give the state code.
How many HSN digits must my invoice show?
4 digits if your aggregate turnover in the previous financial year was up to ₹5 crore, and 6 digits above that (Notification 78/2020-Central Tax, from 1 April 2021). Up to ₹5 crore, invoices to unregistered buyers may leave the code out.
Is GST worked on the price before or after the discount?
After, when the discount is shown on the invoice at the time of supply (section 15(3)(a) of the CGST Act). On 40 units at ₹250 with 10% off at 5%, tax is 5% of ₹9,000, which is ₹450, not ₹500.
What must a B2C invoice show for a sale of ₹50,000 or more?
Rule 46 asks for the buyer's name and address, the delivery address, and the state name with its code, when the buyer is unregistered and the taxable value is ₹50,000 or more. Below that, these are needed only if the buyer asks.
Do I need e-invoicing as a small seller?
Only if your aggregate turnover crossed ₹5 crore in any financial year from 2017-18 onwards (Notification 10/2023-Central Tax, from 1 August 2023). Then your B2B invoices need an IRN and QR code from the e-invoice portal.

The source we built this on

CGST Rules, 2017, rule 46: Tax invoice (CBIC tax information portal, as amended by Notification 20/2024-Central Tax). Checked Oct 2026.

We read the current rule text on CBIC's portal on 10 October 2026 (last amended by Notification 20/2024-Central Tax of 8 October 2024). The worked figures come from our GST calculator.

Also read for this page

Numbers only, not tax advice. The arithmetic and the fields follow the official rules; classification and your returns settle the final tax.

Calculators used in this system

GST CalculatorDiscount CalculatorProfit Margin CalculatorAll money & tax calculators