According to the GST Law, your itemised invoices must contain the HSN Code related to that Item. ERPNext comes pre-installed with all 12,000+ HSN Codes so that you can easily select the relevant HSN Code in your Item
<imgclass="screenshot"alt="HSN in Item"src="{{docs_base_url}}/assets/img/regional/india/hsn-item.gif">
### 3. Making Tax Masters
To setup Billing in GST, you need to create 3 Tax Accounts for the various GST reporting heads CGST - Central GST, SGST - State GST, IGST - Inter-state GST
Go to your **Chart of Accounts**, under the Duties and Taxes head of your account, create 3 Accounts
**Note:** Usually the rate in CGST and SGST is half of IGST. For example if most of your items are billed at 18%, then create IGST at 18%, CGST and SGST at 9% each.
<imgclass="screenshot"alt="GST in Customer"src="{{docs_base_url}}/assets/img/regional/india/gst-in-coa.png">
### 4. Make Tax Templates
You will have have to make two tax templates for both your sales and purchase, one for in state sales and other for out of state sales.
In your **In State GST** template, select 2 accounts, SGST and CGST
<imgclass="screenshot"alt="GST in Customer"src="{{docs_base_url}}/assets/img/regional/india/gst-template-in-state.png">
In your **Out of State GST** template, select IGST
### 5. Making GST Ready Invoices
If you have setup the GSTIN of your Customers and Suppliers, and your tax template, you are ready to go for making GST Ready Invoices!
For **Sales Invoice**,
1. Select the correct Customer and Item and the address where the transaction will happen.
2. Check if the GSTIN of your Company and Supplier have been correctly set.
3. Check if the HSN Number has been set in the Item
4. Select the the **In State GST** or **Out of State GST** template that you have created based on the type of transaction
To print Tax Invoice as per GSTN guidelines, please select **GST Tax Invoice** print format. This print format includes company address, GSTIN numbers, HSN/SAC Code and item-wise tax breakup. And while printing select correct value of Invoice Copy field, to mention whether it is for the Customer, Supplier or Transporter.
