Creating GST-Compliant Invoices in Under 2 Minutes

An invoice is a legal document and a brand impression

In India, a GST invoice is not just a payment request — it's a legal document that your client uses to claim input tax credit (ITC). An incorrectly formatted invoice means your client can't claim their ITC, which creates friction, disputes, and delayed payments. A correct, professional invoice does the opposite: it builds trust, accelerates payment, and protects both parties legally.

What a valid GST invoice must contain

Under GST rules (Section 31 of CGST Act), every invoice must include:

• Supplier's name, address, and GSTIN
• Invoice number (sequential, no gaps or repeats in a financial year)
• Invoice date and supply date
• Recipient's name, address, and GSTIN (for B2B)
• Place of supply (determines CGST/SGST vs. IGST)
• HSN/SAC code for each line item
• Taxable value, tax rate, and tax amount per line item
• Total value of supply

Creating an invoice in Proactiq Finance

Go to Finance → Invoices → New invoice.

1. Select client — Start typing a name. Proactiq searches your CRM contacts. Select the contact and their billing details (email, GSTIN, address) pre-fill automatically.
2. Invoice number — Auto-generated from your prefix + sequence (e.g., INV-0042). You can override if needed.
3. Issue date and due date — Default is today + 30 days. Change for custom payment terms.
4. Line items — Enter description, quantity, and unit price. Add your HSN/SAC code (optional, but required for B2B above ₹50,000).
5. Tax rate — Pre-filled from your workspace default. Change per line if items have different GST rates.

How CGST/SGST vs. IGST is determined automatically

Proactiq compares your registered state (set in Settings) with the client's billing address state:

• Same state → Split into CGST (half) + SGST (half). E.g., 18% GST = 9% CGST + 9% SGST.
• Different state → IGST at the full rate. E.g., 18% GST = 18% IGST.
• Export / SEZ → Zero-rated supply. Select "Export" in the tax treatment field.

Invoice statuses and what they mean

• Draft — Work in progress, not sent to client
• Sent — Delivered, awaiting payment
• Partially paid — Partial amount received
• Paid — Full amount recorded
• Overdue — Past due date, no full payment
• Cancelled — Voided; use a credit note instead for GST compliance