01
Who issues a bill of supply
The two common cases. Your CA can confirm what applies to you.
- ✓Composition dealers, on every sale
- ✓Registered sellers of exempt goods or services, such as fresh vegetables or fresh milk
GST guide
Bill of supply: format and when to use it.
A bill of supply is a bill without GST. It is issued when the seller cannot charge GST on the sale: a composition dealer, or a registered seller of exempt goods or services. It looks like a tax invoice, but it shows no tax.
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Step by step
Who issues a bill of supply
The two common cases. Your CA can confirm what applies to you.
02
Bill of supply vs tax invoice
The difference is the tax.
- ✓A tax invoice shows GST, and a registered buyer can claim input tax credit on it
- ✓A bill of supply shows no GST, so the buyer gets no input tax credit
- ✓Both need a serial number, date, the seller's GSTIN and item details
03
Details a bill of supply shows
Under the GST rules a bill of supply carries these details.
- ✓Seller name, address and GSTIN
- ✓Serial number (up to 16 characters, unique in the financial year) and date
- ✓Buyer name and address, plus GSTIN if registered
- ✓HSN or SAC code
- ✓Description and value of the goods or services
- ✓Signature
04
Extra line for composition dealers
A composition dealer must print the words "composition taxable person, not eligible to collect tax on supplies" at the top of every bill of supply. Ask your CA to check your bill format once.
05
Make a bill of supply free
In MyInvoiceDB, choose Bill of Supply when you make the bill. Prices are entered without GST and no tax is added. Print it or save it as PDF.
FAQ
Questions and answers
Can a composition dealer issue a tax invoice?
No. A composition dealer cannot collect GST from buyers, so it issues a bill of supply.
Can one bill have both taxable and exempt items?
Yes. A registered seller can issue a single invoice-cum-bill of supply when one sale has both taxable and exempt items.
Does a bill of supply need HSN codes?
The HSN rule depends on your turnover, the same as for tax invoices. Use our HSN code finder for a starting point and confirm with your CA.
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