How to Create a GST Invoice and Record Payment
In short
Go to Accounts → Invoices → New Invoice, choose the project, add items with HSN, quantity, rate and GST %, and click Create Invoice — CGST + SGST or IGST is worked out from the states. Record the money with Record Payment, which opens a receipt for that invoice.
| Where | Accounts → Invoices, Accounts → Receipts |
|---|---|
| Steps | 5 |
Step by step
- 1
New invoice
Go to Accounts → Invoices and click New Invoice. Choose the Project (required), Due Date and any Discount Amount.
- 2
Items
Click Add Item for each line: Description, HSN Code, Qty, Unit, Rate (₹) and GST %. GST is split into CGST + SGST or IGST by comparing your state with the client's.
- 3
Create and send
Click Create Invoice. On the invoice use Download PDF, Email, WhatsApp or SMS, and Mark as Sent to finalise a draft.
- 4
Record the payment
Click Record Payment. Enter Amount and Payment Mode (Cash, Cheque, NEFT, RTGS, UPI or Card — required), Payment Date, reference, bank details and any TDS Amount. Click Create Receipt.
- 5
Check the balance
The receipt cannot exceed the balance due; the invoice becomes Partially Paid or Paid.
Good to know
- Payments to vendors are recorded under Accounts → Payments → New Payment, against a vendor bill if you have one.
Common questions
How does the invoice decide CGST + SGST or IGST?
It compares your company's state with the client's state. The same state gives CGST and SGST at half the rate each; different states give IGST at the full rate.
Can a receipt be more than the invoice amount?
No. A receipt cannot exceed the balance due. Partial receipts mark the invoice Partially Paid, and the last one marks it Paid.
Where do I record TDS deducted by the customer?
Enter it in the TDS Amount field on the receipt, so the invoice balance and your TDS records both stay right.
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