Software Consultant Invoice Example

What should a software consultant invoice include?

• GSTIN of both the consultant and the client, since GST invoices require both for input credit
• SAC (Services Accounting Code) for the type of service billed, commonly 998313 for IT consulting
• Place of supply state, to determine whether IGST or CGST plus SGST applies
• Day rate and number of days for each phase of work: review, implementation, handover
• Invoice number in the sequential format required under GST rules
• Bank account and UPI details for payment
• PAN of the consultant if requested by the client for TDS purposes

How to create a software consultant invoice

1. 1Add your business details. Your name, address, contact details and tax number if you are registered.
2. 2Add the client. Their name and billing address. Save them to reuse next time.
3. 3List the work. Break the job into clear line items the way a software consultant bills (see below).
4. 4Add tax. Apply your tax rate (this example uses 18%).
5. 5Set payment terms and a due date. State when payment is due and how the client can pay.
6. 6Download or send. Export a clean PDF, or email it to the client. No signup, no watermark.

How do you itemise a software consultant invoice?

Bill each phase of the engagement, architecture review, implementation sprint, knowledge transfer, as its own line with the day rate and number of days, since clients usually want to see effort broken out by phase for their own project tracking. Keep the knowledge-transfer or handover workshop as a separate line even if it is short, since it is often scoped and paid for as a discrete deliverable. GST at 18 percent is calculated on the full invoice value; if the consultant and client are in different states, IGST applies instead of CGST plus SGST, so set the place of supply correctly.

What do software consultants typically charge?

Indicative ranges for guidance. Your rate depends on experience, location and the job.

Do software consultants charge tax on invoices?

GST applies at 18 percent on software consulting and IT services under SAC 998313, and registration is required once turnover crosses ₹20 lakh for services, or ₹10 lakh in some special category states. If the consultant is in Karnataka and the client is in Maharashtra, this is an inter-state supply and IGST at 18 percent applies rather than splitting into CGST and SGST. TDS may also be deducted by the client under Section 194J, separate from GST, so many consultants note both on the invoice or in the covering email.

What payment terms should a software consultant use?

Day-rate engagements are commonly invoiced at the end of each phase or fortnightly for longer projects, with payment due in 15 to 30 days. Many consultants ask for a portion of the fixed-scope work upfront, especially for a first engagement with a new client. TDS deducted by the client under Section 194J should be reconciled against Form 26AS rather than chased on the invoice itself.

Frequently asked questions