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GST Invoice — How It Works for Indian Businesses

If you are an Indian business registered under GST, Rackwave issues GST-compliant invoices that you can use for input tax credit (ITC) claims. This article explains everything you need to know about GST invoicing on the Rackwave platform — from adding your GSTIN to claiming ITC and understanding the CGST/SGST/IGST split.

Is GST Applicable to Rackwave Services?

Yes. Rackwave provides SaaS (Software as a Service) and cloud-based communication services. These are classified under Information Technology Enabled Services (ITES) and are subject to GST at 18% in India.

Service GST Rate SAC Code
MigoSMTP — Email SMTP & API 18% 998314 (Information Technology Services)
Telnxo — SMS, Voice & WhatsApp 18% 998314 (Information Technology Services)

How to Ensure Your Invoices Are GST-Compliant

For Rackwave to issue a GST-compliant invoice with your GSTIN, you must add your GSTIN to your account before the invoice is generated. Follow these steps:

  1. Log in to the Rackwave portal.
  2. Go to My Account → Profile Settings.
  3. Scroll to the Company & Billing Information section.
  4. Enter your 15-digit GSTIN in the GST Number field.
  5. Ensure your company name matches exactly as registered on the GST portal.
  6. Enter your complete billing address including state.
  7. Click Save Changes.

All future invoices will now include your GSTIN and be GST-compliant for ITC claims.

Important timing rule: GSTIN must be added before the invoice date. Invoices already issued cannot be amended to add GSTIN after they are generated. If your GSTIN is missing from a recent invoice, contact support immediately — a credit note and re-issue can sometimes be arranged if the invoice has not yet been filed in a GSTR return.

GSTIN Format Validation

Your GSTIN must follow the standard 15-character format:

Characters Meaning Example
1–2 State code (2-digit numeric) 08 (Rajasthan)
3–12 PAN of the registered person ABCDE1234F
13 Entity number (1–9 or A–Z) 1
14 Letter Z (default) Z
15 Check digit 5

Example GSTIN: 08ABCDE1234F1Z5

CGST + SGST vs IGST — Which Applies to You?

The GST type on your invoice depends on whether your business is in the same state as Rackwave (the supplier):

Your Situation Tax Applied Breakdown
Your business is in the same state as Rackwave CGST + SGST CGST 9% + SGST 9% = 18% total
Your business is in a different state from Rackwave IGST IGST 18% (single line item)
You are an international business (outside India) No GST (zero-rated export) GST not applicable; invoice in USD
You are an Indian individual (not GST registered) IGST or CGST+SGST 18% applicable; GSTIN not required but no ITC available

Input Tax Credit (ITC) Eligibility

If you are a GST-registered business, you can claim Input Tax Credit on the GST paid to Rackwave against your GST liability:

  • You must have a valid GSTIN registered on your Rackwave account.
  • The invoice must be issued in your company's legal name matching your GST registration.
  • Rackwave must file the invoice in its GSTR-1 return — which makes the credit visible in your GSTR-2B.
  • Payment of the invoice must be completed within the same tax period for ITC eligibility.
  • Consult your CA or tax advisor for specific ITC claim procedures as rules may vary by business type.

State Codes Reference — Common Indian States

Code State Code State
07 Delhi 27 Maharashtra
08 Rajasthan 29 Karnataka
09 Uttar Pradesh 32 Kerala
24 Gujarat 33 Tamil Nadu
06 Haryana 36 Telangana

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