GST invoicing for SaaS in India: the basics

If you sell software subscriptions in India, GST affects how you register, how you invoice and how you report. Here is the overview.

Do you need to register?

Service providers must register once aggregate turnover crosses the prescribed threshold, which is lower for some special category states. Some situations, such as inter-state supply of services in certain cases or selling through e-commerce operators, can change the picture. A CA can confirm which applies to you.

What GST means for each invoice

• You add GST to your price at the applicable rate. IT services commonly attract 18%, but confirm for your offering.
• For a customer in the same state, tax splits into CGST and SGST.
• For a customer in a different state, you charge IGST.
• Place of supply rules decide which of these applies.

Timing

For services, the invoice generally has to be issued within a set period after the service is provided. For subscriptions, many businesses invoice at the start of each billing period. Ask your CA how this applies to advance payments.

Exports

Exports of services can be zero-rated, usually under a Letter of Undertaking (LUT) or with tax paid and refunded. The conditions matter, so do not assume.

Make it routine

The practical goal is consistent invoices that carry the right fields every time, and records that match your returns. Knock stores GSTIN, place of supply and tax split on each invoice so the data is ready for your accountant.