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Tax & Compliance Guide

The Complete GST Invoicing Guide

How to create fully compliant Indian GST invoices, automate CGST, SGST, IGST calculations, classify HSN/SAC codes, and manage state code mappings in BillPond.

1Understanding GST Tax Splits (CGST, SGST, IGST)

Under the Indian Goods and Services Tax framework, tax calculations depend on the Place of Supply relative to your registered business location:

Intra-State Supply (Same State)

If your client is located in the same state as your business, the total GST rate is divided equally between CGST (Central GST) and SGST (State GST). E.g., an 18% slab splits into 9% CGST + 9% SGST.

Inter-State Supply (Different State)

If your client is located in a different state or Union Territory, the entire tax is levied as IGST (Integrated GST) at the full rate (e.g., 18% IGST).

BillPond automatically calculates the correct split when you select the customer's state code from the dropdown.

2HSN / SAC Code Classification

Every product or service must include an appropriate classification code:

  • SAC (Services Accounting Code): Standard 6-digit codes used for service providers, consultants, freelancers, and software developers (e.g. 998314 for IT Design & Development).
  • HSN (Harmonized System of Nomenclature): 4, 6, or 8-digit codes used for physical goods, hardware, and physical shipments.

In BillPond, you can set default HSN/SAC codes in your line-item catalog or enter custom codes per invoice item.

3Configuring Your Business GSTIN in Settings

To generate GST compliant invoices on BillPond:

  1. Navigate to Settings > Business Profile.
  2. Enter your legal 15-digit GSTIN and registered business address.
  3. Select the GST Standard template as your default in Settings > Invoice Templates.
  4. Add your Bank IFSC details and UPI VPA ID in Settings > Banking & Payments.

4Export Billing & LUT (Letter of Undertaking)

If you bill international overseas clients (in USD, EUR, GBP, AUD, etc.), services are classified as "Zero-Rated Exports". You can issue invoices without charging GST by configuring your LUT number in the invoice notes section.