Sale Bill to State Government

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Quick Summary

When supplying goods like bricks or cement to a State Government project in another state, you must issue a tax invoice just as you would for private clients. This is considered an interstate sale, so you'll charge IGST. While government departments are usually GST registered, verify their GSTIN to ensure correct reporting and input tax credit for the buyer.

Deepak Rawat

Deepak Rawat (Querist)
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24 January 2021 Dear Sir/Mam,
I have business of Construction and I deal in Bricks, Cement, Sand, Steel etc.
Till last month, i was doing business with private sector and this month I got a project of State Government. Thus, please guide, How to raise sale bill to state government ? Is it treated similar like private sector and billing will be same as of private sector company ?
Further, I have my company in Uttar Pradesh and i got project from Haryana Government.
Please guide.

Lekhraj sood

Lekhraj sood (Expert)
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24 January 2021 You have to raise tax invoice for Contract of the Govt also and it is the same as for private sector buyer.

Deepak Rawat

Deepak Rawat (Querist)
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25 January 2021 Thank You Sir. Further Please guide, will it shown to interstate sale to unregistered dealer ?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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22 July 2025 Here’s how it works when you sell to a **State Government project** in a different state (like your UP-based company selling to Haryana Govt):

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### 1. **Raising Sale Bill / Tax Invoice**

* Yes, you must raise a **tax invoice** just like you do for private sector customers.
* The invoice should clearly mention:

* Your GSTIN
* Invoice number and date
* Description of goods/materials supplied
* Quantity, rate, amount
* GST rate and amount separately
* Place of supply (which will be Haryana in your case)
* Recipient details (State Government department)

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### 2. **Interstate Sale**

* Since your company is in UP and the buyer (Haryana Govt) is in another state, this is an **interstate supply**.
* You need to charge **IGST** (Integrated GST) on the invoice, not CGST/SGST.
* This sale will be treated as **interstate sale to a registered recipient** (assuming the Govt department has a GST registration, which usually they do).

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### 3. **Sale to Unregistered Dealer?**

* Since this is a government department, generally it will be **registered under GST**.
* If for some reason the government entity is **unregistered**, you still treat it as interstate supply, charge IGST, and report it as sale to an unregistered dealer in your GST returns.
* But most state government departments are registered entities, so verify their GSTIN before invoicing.

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### Summary:

| Aspect | Treatment |
| ------------------------ | --------------------------- |
| Invoice Type | Tax Invoice |
| Tax | IGST (Interstate sale) |
| Recipient GST Status | Usually Registered (verify) |
| Reporting in GST Returns | Interstate outward supplies |

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**Tip:** Always ask for the government department's GSTIN before invoicing. It helps in correct GST filing and claim of input credit for the buyer.

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If you want, I can help you draft a sample tax invoice template for this scenario!

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