What is an invoice and what should it include
An invoice is a commercial document a seller issues to a buyer that records a sale and requests payment. A clear invoice format leaves no room for dispute about what was supplied and what is owed.
Whatever your business, a good invoice format carries the same core fields:
- Your business name, address and contact, plus GSTIN if registered
- A unique invoice number and the invoice date
- The customer's name and billing address
- Line items with description, quantity, rate and amount
- Tax shown clearly (CGST, SGST or IGST) where applicable
- Subtotal, tax and the total amount payable
- Payment terms, due date and payment details
Invoice vs tax invoice vs bill vs proforma invoice
People use these terms loosely, but they are not the same. The table shows how a plain invoice compares with a GST tax invoice, a proforma invoice and a simple bill.
| Invoice | GST tax invoice | Proforma invoice | Bill / cash memo | |
|---|---|---|---|---|
| Purpose | Request payment for a sale | Claim and pass on GST on a sale | Quote terms before a sale | Acknowledge an over-the-counter sale |
| Needs GSTIN | Optional | Yes | No | No |
| Creates GST liability | If GST shown | Yes | No | Usually no |
| When issued | On sale | On or after supply | Before supply | At point of sale |
Invoice format in Excel, Word or PDF
Many people search for an invoice format in Excel or Word so they can fill it and print. Those templates work, but you re-key details every time and it is easy to get the tax maths or the running number wrong.
An online invoice generator removes that friction: you fill a short form, the totals and tax calculate themselves, and you download a clean invoice PDF that prints and emails perfectly. For a formal GST tax invoice with automatic CGST, SGST and IGST, use the GST invoice generator listed below.
How to create an invoice online in 4 steps
Make a professional invoice in under a minute with the generator above.
Related documents: quote a customer before the sale with a proforma invoice, charge GST with a GST tax invoice format, and acknowledge payment with a receipt for the money you received.
- Enter your business details and your customer's details
- Add each item with its quantity and rate, and set a GST rate if you charge tax
- Add an invoice number, date and any payment terms
- Preview the invoice live and download it as a PDF to send or print
Types of invoice and business documents
The document you send depends on where you are in the sale. You can create the whole set here for free:
- A GST tax invoice for a registered sale, with CGST, SGST or IGST worked out for you
- A proforma invoice to confirm terms before you supply
- A quotation or price estimate to open a negotiation
- A delivery challan for moving goods without raising a sale, under GST Rule 55
- A money receipt once the customer has paid
- A cash voucher to record petty cash paid out
- A simple cash memo or general bill for an over-the-counter sale
Frequently asked questions
What is an invoice?
An invoice is a document a seller sends a buyer that lists the goods or services sold, the quantities and prices, any tax, and the total amount due. It records the sale and requests payment.
What is the difference between an invoice and a bill?
They are largely the same document seen from two sides. The seller issues an invoice to request payment; the buyer refers to that same document as a bill they have to pay. A cash memo or bill is usually a simpler over-the-counter version.
What is the difference between an invoice and a tax invoice?
A tax invoice is an invoice issued by a GST-registered seller that shows the GSTIN and the CGST, SGST or IGST charged, and it lets the buyer claim input tax credit. A plain invoice may not carry GST at all.
Do I need to be GST registered to make an invoice?
No. Anyone can raise an invoice for a sale. You only need a GSTIN, and must issue a GST tax invoice, if you are registered under GST and charging GST.
How do I number my invoices?
Use a continuous series with no gaps, for example INV-0001, INV-0002, and reset it each financial year if you prefer. Consistent numbering keeps your records clean and is required for GST invoices.
Can I create an invoice online for free?
Yes. Fill the form on this page, preview the invoice live, and download the PDF. New accounts include a free bill, and the Lifetime plan removes the limit.