Every client has a GST treatment. It decides the tax on each invoice you raise for them, the GSTR-1 table those invoices go to, and whether an e-invoice applies. The client form shows the effect of your choices in two panels on the right: Tax behaviour and GST readiness.
Type of client
Under Type of client, choose Indian or International. An international client is always Overseas. Sales to them are exports, the place of supply is outside India, and you pick their Country and Currency instead of entering a GSTIN.
GST treatments for Indian clients
- Registered Business - Regular — registered under GST. Tax at the normal rate: CGST + SGST within your state, IGST across states. New clients start on this one.
- Registered Business - Composition — registered under the Composition Scheme. Normal rate, and they can't claim ITC on it.
- Unregistered Business and Consumer — B2C. Normal rate, reported by state in GSTR-1 rather than invoice by invoice. No GSTIN is captured.
- Special Economic Zone and SEZ Developer — zero-rated: under LUT or bond without IGST, or with IGST paid and refunded. Never CGST + SGST.
- Deemed Export — normal rate, claimed back as a refund and reported separately in GSTR-1.
- Tax Deductor — government departments and agencies. Normal rate. They deduct 2% GST TDS when a contract's value, excluding GST, exceeds ₹2.5 lakh.
- Input Service Distributor — normal rate.
Tax preference
Tax Preference under Tax and place of supply starts at Taxable. Choose Exempt, Nil-rated or Non-GST supply for a client whose supplies carry no GST. These go to Table 8 of GSTR-1, which is not the same as zero-rating.
The Tax behaviour panel
The panel shows a badge for the treatment, such as REGULAR, B2C, SEZ UNIT or OVERSEAS. Under it you see whether supplies are intra-state or inter-state for the chosen place of supply, and the tax that applies. It then lists:
- Reported in — the GSTR-1 table, such as Table 4A – B2B or Table 6A – Exports.
- Reverse charge — whether it applies.
- e-Invoice — whether a supply to this client qualifies, depending on your turnover.
- e-Way bill — for goods, required above ₹50,000. Not needed for services.
- Payment terms — from the Payment Terms field.
The GST readiness panel
GST readiness lists what the client still lacks before invoicing goes smoothly. Its badge reads, for example, "1 to fix · 2 to review", or All clear when nothing is open.
Items to fix come first, such as GSTIN missing, GSTIN looks wrong, Place of supply missing or PAN looks wrong. Items to review follow, such as GSTIN not verified, Billing address incomplete, PAN missing, Place of supply differs from the GSTIN and No contact email. International clients are checked for country, invoice currency and billing address instead.
Click an item to jump to its field. Checks that already pass are tucked away under a link such as Show the 3 checks already passing.
Tips
- Nothing in GST readiness stops you saving. You can create a client before you have their GSTIN and add it before the first invoice.
- Changing a client's treatment later doesn't change invoices already raised. They keep the treatment they were issued under.
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