Service invoice format: the same tax invoice, classified by SAC
A service invoice is not a different document from a GST tax invoice — it is a tax invoice for a service, and that changes two fields rather than the whole layout. The supply is classified by a SAC code instead of an HSN code, and the place of supply decides whether the tax is split into CGST and SGST or charged as IGST. Everything else a Rule 46 invoice needs is still there: a consecutive number, the supplier and client GSTINs, the taxable value, the rate and amount of tax, and the total in words. This template adds the one field a goods invoice does not need — the period over which the service was delivered — and leaves the tax columns live in Excel so a retainer or an hourly bill can be corrected before it is sent.
Frequently asked questions
What is a service invoice?
A service invoice is the tax invoice a service provider issues for work done — consulting, design, development, maintenance, professional fees. It is not a separate legal document from a GST tax invoice; it is a tax invoice for a service. It carries the same Rule 46 particulars as a goods invoice, but classifies the supply with a SAC code instead of an HSN code and states the place of supply.
Is a service invoice different from a GST invoice?
No. "Service invoice" describes what is being billed, not a different document. If you are registered under GST, the invoice you issue for a service must be a tax invoice under Section 31 of the CGST Act, with the tax split into CGST and SGST or charged as IGST. This template follows that layout, and the tax columns recalculate as you type in Excel.
Should I use an HSN code or a SAC code on a service invoice?
Use a SAC code. HSN classifies goods; SAC classifies services. A SAC code is six digits and the first two digits tell you the service group — for example, 9983 covers professional, technical and business services. Put the SAC code on every service line and in the supplier block, so the classification is visible even if the line description is shortened.
Do I charge GST on services?
If you are registered, yes — at the rate applicable to that service. The standard rate for most services is 18%, some are exempt, and a few carry a different rate. An intra-state supply splits the tax into CGST and SGST at half the rate each; an inter-state supply charges the full rate as IGST. Exports are zero-rated, usually against an LUT, and the invoice must carry the export particulars.
Should TDS be deducted from the invoice amount?
No. The invoice shows the full taxable value and GST. The client deducts TDS under Section 194J for professional or technical fees, or Section 194C for contract work, when making payment, and issues a TDS certificate. Reducing the invoice value by the TDS would understate your turnover and the tax you have to declare, so keep the two separate.
What is place of supply on a service invoice?
For a B2B service, the place of supply is generally the location of the recipient, which is why a client in another state is charged IGST. For a B2C service, it is generally the location of the supplier, with exceptions for services such as immovable property, events and transportation. The place of supply is what decides whether the invoice carries CGST and SGST or IGST, so it is not a decorative field.
Can a freelancer use this service invoice template?
Yes. The template is deliberately generic: one supplier block, one client block, a service period, a SAC code and a tax summary. A freelancer bills the same way a company does, with the same GST fields. If you would rather not maintain a spreadsheet, the online invoice generator fills the same layout and calculates the tax for you.
Does a service invoice need a signature?
Rule 46(q) requires the signature or digital signature of the supplier or an authorised representative on a tax invoice. For a small business issuing a PDF, a scanned signature or a typed authorised-signatory block is the practical approach, and the template includes one. An invoice without any signature is a common audit objection even where the supply itself is well documented.