If you’re providing services to a foreign party, or you’re billing a different local/interstate party for the same, then you might be wondering how to generate a GST-compliant e-Invoice in TallyPrime.
This guide will explain both scenarios clearly with examples.
Let’s get started.
1. What is an e-Invoice for Services in TallyPrime?
An e-Invoice for services is just like any other B2B e-Invoice, but instead of goods, it contains service details.
If you are:
- Providing services to a foreign party (export of services), or
- Providing services to a client but billing a third party (like a head office),
Then TallyPrime helps you handle both cases and still generate a valid IRN (Invoice Reference Number) through the IRP (Invoice Registration Portal).
2. SCENARIO 1: Service Export to a Foreign Party in TallyPrime
1. Example:
- Your company: ABC Services Pvt. Ltd., based in Mumbai
- Foreign client: GlobalTech Ltd., USA
- Service: Software Development
- Value: ₹2,00,000
- Export under LUT (no IGST)
2. Step-by-Step in TallyPrime:
1. Enable GST & e-Invoicing
- Go to: F11 > F3: Statutory & Taxation
- Enable:
- GST: Yes
- e-Invoicing: Yes
2. Create Ledger for the Foreign Client
- Go to: Accounts Info > Ledgers > Create
- Name: GlobalTech Ltd.
- Under: Sundry Debtors
- Country: USA
- GST Registration Type: Overseas
- Set currency: USD (if applicable)
3. Create Sales Ledger for Export Services
- Name: Export Services
- Under: Sales Accounts
- GST: Applicable
- Nature of Transaction: Export under Bond/LUT
If you’re charging IGST, choose Export with Payment of Tax
4. Create Service Ledger
- Name: Software Development Services
- Under: Sales Accounts (or Direct Income)
- HSN/SAC: 998313 (example for IT services)
- GST Rate: 0% (under LUT) or 18% (with IGST)
5. Create the Invoice
- Go to: Vouchers > F8 (Sales)
- Select Party: GlobalTech Ltd.
- Sales Ledger: Export Services
- Fill in service details, quantity (optional), rate, etc.
- No tax will be applied (under LUT)
Tally will prompt:
Do you want to generate e-Invoice?
Choose Yes
6. IRN and QR Code
- Tally uploads data to IRP
- Receives and attaches IRN, Ack No., and QR Code
- You can print the invoice with all required details
3. SCENARIO 2: Provide Service to One Party, Bill Another (Bill To vs Ship To) in TallyPrime
1. Example:
- Your company: ABC Consultancy, Delhi
- Service done for: XYZ Manufacturing, Maharashtra
- But invoice to be raised to: PQR Ltd., Maharashtra (billing party)
This is common in corporate groups, where head office handles billing.
2. Step-by-Step in TallyPrime:
1. Create Both Party Ledgers
- PQR Ltd. (Billing Party)
- XYZ Manufacturing (Service Receiver)
- Create as a separate ledger or mention in the invoice as consignee
2. Create Service Ledger
- Name: Consulting Services
- HSN/SAC: e.g. 998311
- GST Rate: 18%
- Under: Sales Accounts
3. Create Sales Invoice
- Go to: Vouchers > F8 (Sales)
- Party: PQR Ltd. (Billing Party)
- Narration or Description: Mention that services rendered to XYZ Manufacturing
- Add service ledger: Consulting Services ₹1,00,000
- Add CGST & SGST (since both are in Maharashtra)
Tally will prompt:
Generate e-Invoice?
Select Yes
4. Print Invoice
- IRN and QR Code will be generated
- Add custom narration like:
Service rendered to: XYZ Manufacturing Pvt. Ltd.
Invoice raised to: PQR Ltd.
This helps avoid confusion during audits or reconciliations.
4. Key Points to Remember while Creating e-Invoice for Service to a Foreign Party & Billing to Local or Interstate Party in TallyPrime
| Situation | Action in Tally |
|---|---|
| Service Export | Mark the party as Overseas and use Export Sales Ledger |
| Export under LUT | No GST, use Export under Bond/LUT |
| Export with Tax | Apply IGST |
| Different Billing Party | Invoice to billing party, mention service receiver in narration |
| e-Invoicing | Required if turnover exceeds threshold |
5. Final Words
TallyPrime handles both exports of services and billing to third parties easily.
Just make sure:
- Party ledgers are correct (Overseas vs Local)
- Tax ledgers are linked properly
- Nature of transaction is accurate (Export, B2B, etc.)
Once that’s done, e-Invoice generation becomes automatic — and 100% compliant with GST rules.
Let me know if you want sample entries or printable formats.
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