GST Invoices : Create and Send GST-compliant Invoices with Razorpay


With GST coming into effect in 2017, all Indian businesses are now required by law to create GST-compliant invoices – both on paper and electronically.

The number of e-invoices across the globe is on the rise (volume of e-invoices in 2016 was approx. $30 billion worldwide, with an average growth of 10-20% per year); as has the volume of e-retail, with global transactions crossing the $2.3 trillion mark in 2017.

This led the think tank at Razorpay to have another of our lightbulb moments – we already had the infrastructure for businesses to accept payments online.

Why not merge it with an invoicing feature so that accepting payments against a GST-compliant invoice becomes easier for everyone? This would automatically cut down the need for multiple software and make the payment process more seamless for everyone included.

So, we set to work. And the outcome is an intelligent software that provides automation of GST incorporation into invoicing – a feature that very few products in the market currently allow. As the Product Manager for this new feature, I am proud to introduce you to ‘Razorpay GST-compliant Payable Invoices‘.

gst invoicing software

Razorpay GST Invoices – How Do They Help?

Invoices have been in trend since the ancient times when merchants used clay tablets to keep a record of supply. In the simplest of terms, an invoice is a “document which states the supply of goods and services and forms the basis for a tax levy”.

GST-compliant invoices differ from the earlier VAT invoices by a few crucial factors:

  • It is important to mention details like GSTIN of the supplier and the customer, the place of supply, the HSN/SAC codes which are specific to the goods/services being sold.
  • The invoice needs to have a clear breakup of the tax levied. Just stating the value of tax is not enough; there needs to be a breakup of the CGST/SGST/IGST components.
  • It is mandatory to issue invoices for all registered supplies as not doing so will be considered an offence under the law.

For a B2B business, e-invoices are an effective way of managing compliance as well as saving costs. It is estimated that creating invoices online can help reduce operational costs by 60-80% vis-a-vis paper-based invoicing. However, this saving does not mean much if you spend money on multiple software for payment, accounting and for invoicing.

GST Sample Invoice

The Benefits of Using Razorpay GST Invoices

The Razorpay GST Invoices gives you access to a single powerful system- where you generate invoices and collect payments via the same software.

Ultimately, this helps your business reduce operational costs, reduce payment delay and delinquency, and manage cash flow in a better manner.

Most importantly, it adds an informational element to the transaction. The customer knows exactly what they are paying for upfront.

The hallmark of any good product is that it simplifies an industry pain point and helps improve business processes. Our invoicing feature helps you in the following ways:

  • You can create ‘Payable Invoices‘ for B2B or B2C transactions easily and accept payments via a single process. For monthly recurring invoices, you can use our APIs to create invoices in bulk.
  • Automatically include the GST breakup in your invoices. Since this is linked to the HSC/SAC codes of the supplied items, there is zero chance of error in levying taxes. Remember, GST tax rates vary according to the tax bracket of the item and correctly calculating tax is an important part of creating GST-compliant invoices.
  • Your customers can choose to pay from multiple payment options available on Razorpay or even use Virtual Accounts to make offline payments against the invoices. This enables customers to make instant payment – anywhere, any time – and helps businesses maintain regular cash flow for important tickets.
  • The ‘Dashboard Tracking’ option allows you to tally Account Receivable (outstanding amount) and the money collected/received from your Razorpay dashboard. There is no need for a separate accounting software for this.
  • In certain cases, your customers may want to make partial payments against an invoice. Let’s say they only wish to credit a small amount as an advance and expect to be able to pay the rest when they receive the goods. Razorpay GST Invoices come with a ‘Partial Payment’ option for such use cases.

Most importantly, you can use our software to create invoices even if you’re not registered under GST. Our intuitive and intelligent software can be used to create normal invoices without GST taxes that can be sent to your customers as proof of transaction.

Creating GST Invoices with Razorpay – The Process

At Razorpay, we have always been very particular about keeping the user flow/user experience simple, so that our users – whether they be a startup or an established business –  can use the product seamlessly. We have tried to do the same with the GST Invoices and I have detailed the process below.

For easy understanding, I have broken down the process into five steps from creation to reconciliation.

GST Invoice Generation

Step 1: Creation and Generation of GST Invoices

  • To create an invoice for a customer, begin by adding all the necessary details such as the GSTIN of the customer, PAN details, mobile phone, and email id.
  • Next, add item details of the goods/services sold to the customer. You can choose the HSN/SAC codes for the same, and add it to the invoice.
  • Once you add the item details and the place of supply, the GST will be automatically calculated by the software. The GST rate is linked to the item code and the place of supply; hence there is zero chance of error.

You can save the details for further use. This will help in the mass creation of invoices and faster creation of recurring invoices.

Step 2: Sharing of GST Invoices

  • The invoices are shared via email and SMS (you added these details in the first step).

Note: Even in legacy software, the sharing has to be done manually. However, Razorpay automates the process so that it is easier and faster.

Step 3: Payment

  • You can share your bank details over the same mail to facilitate online payments. This works for ‘Payable’ invoices that need to be paid online.

Step 4: Notification

  • If the invoice is paid online, you will receive notifications via the webhooks available on our site. If the payment is done via RTGS or NEFT, then it needs to be manually tallied.

Step 5: GST Reconciliation

  • Reconciliation for Razorpay GST invoices is done the same way as for any other invoice. You will have to account for the monthly ‘Account Receivables‘ and ‘Invoices Issued‘ and ensure that they both tally.

So there! The easiest invoicing solution for businesses is now in town – Razorpay GST- compliant Payable Invoices. Have you used it yet?

Collect payments faster with the all new powerful Payment Links

In the online world, payments are more than an exchange of money. It is a metric of conversion, a stamp of trust and an important part of the user experience. With the various payment options available to the customer, the digital payments industry needs to look at fine-tuning solutions to provide a more customised experience to businesses.

When we launched our suite of converged payment solutions last year, we wanted to provide solutions that can be of use for every business. Like the Razorpay Payment Links, which can be used by both offline and online businesses. You create and share a link with a customer via SMS, Email, Whatsapp, etc.

The customer clicks on the link and is able to pay using the payment mode of his choice. Simple! A business can use Razorpay APIs to integrate this tool with their existing website. Or, they can use the dashboard to create these links. And depending on the need, the customer can pay the entire amount or a part of it.

Razorpay Payment Links: The Different Use Cases

Research states that around 70% of all online customers abandon carts across e-commerce sites. Confirming a payment is the final step in the user’s decision-making process, and the checkout flow can play a huge role in this.

Payment Links helps business capture customer intent and solve this pain point in many ways:

  • The link can be used by any business; even those without an online or mobile storefront. You can easily create and send links from the Razorpay dashboard, without any API integrations. It is a simple, 3-step process that is highly efficient.
  • It reduces friction points during checkout. Let’s say your sales executive is on a call with a customer. Now, instead of waiting for the customer to finish the call and make a payment – which could potentially lead to them changing their mind – the executive can send a payment link via SMS. The customer can complete the transaction while on the call, thus leading to successful conversion. The same process is applicable to sales conversations over Whatsapp, Facebook and other social-media sites.
  • Payment Links is always a great backup to your online payments. Suppose your customer is trying to make payments and for some reason is not able to complete the payment on that device. You can trigger a payment link to be sent to the customer if a payment fails, and let him try from another device for a crucial payment.
  • Accepting payments online via these links also helps businesses increase efficiency for at-home deliveries. Current estimates put the number of CoD orders at 60-75%, and the logistics industry says that it takes 1.24 attempts to deliver one CoD order to the customer.
    Let’s assume that your logistics team cannot complete an attempted delivery because the customer has insufficient cash. All you have to do is generate a payment link on the spot and finish the delivery process. The added benefit of a CoD order is that customers can do their QA before paying. This happens even when accepting payments online via the link. Your business would have retained trust, while reducing the cost of handling cash payments.

In the months since launching the Payment Links tool, we have been trying real hard to live up to our promise of providing a universal payment solution. And I’m proud to share that we have inched closer to that ideal with the new features added to this product.

Payment links for everyone, features to power your payments

The updated Payment Links has three new features which add to the flexibility with which you can structure your payment collection. As per the size of your team, you can do the same actions through the platform of your choice, be it through API or the dashboard with the same amount of control. Let me explain:

New Feature 1: Batch Uploads

Businesses grow on a daily basis and so does the number of transactions they handle. The ‘Batch Upload’ is a handy feature which can help businesses send out payment links to multiple users via a single dashboard click, without having to use an API.

The accounting and reconciliation of these payments also gets automated, thereby simplifying the collection process. This feature has served as a handy solution for companies like Delhivery who use it for B2B collections as well as for Playo & Shuttl who use to collect payments from their customers.

With the ‘Batch Upload’, all you need to do is add the details of your customers (name, mobile number, email id) in an Excel sheet along with transaction details like amount, description and payment link expiry date. Upload the sheet onto your Razorpay dashboard and send hundreds of payment links across email / SMS in a single click.

Here is a short video which shows just how.


Businesses which need to collect cash on a daily basis will find this feature very helpful. Typically, the amount collected in cash has to be deposited in a booth or collection center, from where it travels to the central office.

After several manhours tallying the amount, it is sent to the bank and deposited into the company account. Add to this long process the hidden cost of cash – money and time spent storing, safeguarding and transporting the cash.

The ‘Batch Upload’ is a better way to accept payments online so that accounting and reconciliation becomes easier.

New Feature 2: Partial Payments

We have talked about capturing customer intent earlier. The ‘Partial Payments’ feature is a great way of doing this. Simply put, this feature provides the ability for the customer to make the transaction in parts be it in cases of installments, advance and the likes.

Razorpay Payment Links - Partial Pages - How it Works

A great use case is the hospitality industry. Hotels have always faced the problem of no-shows, where guests book a room but fail to turn up. Inventory, in the hospitality industry, is a perishable commodity and when you have a no-show, the first casualty is your revenue. No-shows are greater for Pay-at-Hotel bookings (around 60-70%) than for bookings with advance payments.

To prevent this, hotels can use the ‘Partial Payments’ feature to send a payment link to the customer the moment they book.

On clicking the link, the customer will see a proforma invoice with their booking details. They can then pay an advance amount and confirm the booking. And as our own case study for Treebo proves, hotels can reduce no-shows by 30% or more with this single additional step.

Partial payments also work well in the case of expensive, high-end buys. Say a customer orders an expensive watch on your website, and wants to be sure of the quality before making the full payment.

You can send a payment link to your customer and ask him to pay a nominal amount as advance. The rest can be paid later. In all these cases, the payment link helps businesses confirming a lead. And for the customer, it is a way of checking quality and satisfaction before making an expensive buy.

New Feature 3: New UI for Improved User Experience

To make simple simpler is always a challenge. The best UI designs do two things well: they offer an intuitive experience, and they deliver what users expect from your website. In order to further improve the experience with Payment Links, we gathered feedback from our users and also used behavioral data to create an improved UI.

The new UI has a simplified ‘Creation’ view. We have optimised this design by adding the frequently used fields on the top, where they are easily visible. We have also added an ‘Inline Edit’ feature so that you can edit an issued payment link directly while viewing it’s details.

Razorpay Payment Links - Hosted page Screen - How it Looks

Product on Demand: Payment Links Chrome Extension

We at Razorpay are always sensitive to what our customers want. There are several features that we would love to add to Payment Links. For example, a Chrome extension for generating and managing payment links directly from the browser is one which we think holds immense promise. And for that we need your help in validating the concept.

With the Chrome extension, you will not even have to log in to their Razorpay dashboard to create and share a payment link. Just click on the extension, enter the customer details, share the payment link and boom! You have closed the deal and the money is on its way to your bank. The end result – a frictionless, faster and single-click process for accepting payments online.

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