How to Issue an Invoice Without a GST Number (And When It's Actually Allowed)

Many small businesses, freelancers, and startups get confused about this. They either overcomplicate things or waste time issuing incorrect invoices.

Let's simplify it for you.

What’s This Post About?

This isn’t just another post explaining what GST is. This is your step-by-step guide to understand WHEN and HOW you can issue invoices without a GST number in India.

Whether you’re a freelancer, startup founder, or small business owner — this will save you headaches, money, and time.

List of Situations Where You Don’t Need a GST Number to Issue an Invoice

Let’s cut the noise and talk facts. Here’s where you can issue invoices without a GSTIN:

1️⃣ Your Turnover is Below ₹20 Lakhs (₹10 Lakhs for North-Eastern States)
If your annual turnover is under the GST threshold, you’re not required to register for GST.
Just mention: “GST not applicable – turnover below threshold.”

2️⃣ You Are Selling Only Exempted Goods or Services
If what you sell falls under GST-exempt categories (like education, healthcare, or dairy products), you don’t need GST registration.
Invoice freely — but don’t charge GST.

3️⃣ You’re Providing Services Outside India (Export) Under LUT
Freelancers working with international clients can issue invoices without a GST number if under threshold or with LUT (Letter of Undertaking) if registered.

4️⃣ You Operate Solely Under Composition Scheme
Composition scheme businesses don’t issue ‘tax invoices’. They issue a “Bill of Supply”.
No GST is shown separately.

How to Issue an Invoice Without GST Number (Step-by-Step Template)

If you’re exempt, here’s a quick invoice format you can follow:

✅ Your Business Name
✅ Business Address
✅ Invoice Number & Date
✅ Buyer’s Details
✅ Description of Goods/Services
✅ Amount
✅ “GST Not Applicable” Mention
✅ Signature

That’s it. Clean. Professional. Legal.

Common Mistakes to Avoid (If You’re Not Registered for GST)

🚫 Don’t show GST % or GST amount on your invoices
🚫 Don’t claim you’re registered if you’re not
🚫 Don’t write “TAX INVOICE” — use “INVOICE” or “BILL OF SUPPLY” instead

Why It’s Important to Get This Right

💡 Clients, auditors, and tax officers notice these small things.

❌ Doing it wrong? It can lead to penalties, mistrust, or delayed payments.
✅ Doing it right? You appear professional and compliant from Day 1.

Conclusion

Are you still confused about when you should register for GST? Or struggling with invoicing formats?
Let’s talk! Drop your thoughts below.