GST Billing Guide for Shop Owners: HSN Codes & Tax Slabs

The Goods and Services Tax (GST) landscape in India is constantly evolving. For a retailer, the most critical aspect isn't just filing taxes, but generating a compliant invoice at the point of sale.

1. Understanding HSN Codes

Harmonized System of Nomenclature (HSN) codes are mandatory. If your turnover is:

• Up to ₹5 Cr: You need to report 4-digit HSN codes for B2B supplies.
• Above ₹5 Cr: You need 6-digit HSN codes for all invoices.

Kosh automates this by allowing you to save HSN codes with products once, ensuring every bill is compliant.

2. The Anatomy of a Perfect Bill

To claim Input Tax Credit (ITC), your bill must contain:

• Supplier Name, Address, and GSTIN.
• Customer Details (if B2B).
• Invoice Number (Sequential and Unique).
• Date of Issue.
• Taxable Value and Rate (CGST/SGST/IGST breakdown).

3. Common Mistakes to Avoid

The most common error we see is Inter-state vs Intra-state confusion. If you are selling to a customer outside your state, you must charge IGST. Within the state, it splits into CGST and SGST. Kosh handles this calculation automatically based on the customer's state selection.