Consultants who bill by the hour need an invoice that shows where the time went. This GST tax invoice lists hours by activity for the month, at one hourly rate, and charges CGST and SGST because the client is in the same state.
A single line reading '46 hours - ₹1,84,000' prompts questions. Break the hours into the main activities - site visits, analysis, workshops, calls - so the client can match them against what they saw happen, and send your timesheet with the invoice.
Use decimals for part hours (7.5 rather than 7 hours 30 minutes), and invoice on the same day each month so the client's accounts team knows when to expect it.
For services to a GST-registered business, the place of supply is generally the client's location. When that's in your own state, you charge CGST and SGST at 9% each; when it's in another state, you charge IGST at 18% instead. The generator works this out from the two state codes.
Not when GST is shown separately, as it is here. The client deducts TDS under section 194J on the fee excluding GST, and you can claim that TDS against your income tax.
Hourly suits open-ended advisory work where the effort is hard to predict. For a well-defined deliverable, a fixed fee is often easier for the client to approve. Many consultants agree an hourly rate with a cap on hours each month.
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