InvoiceKitQuick answer: A bill of supply is issued instead of a tax invoice by registered suppliers who are composition taxpayers or who supply exempt goods or services. No GST is charged on it. It shows the supplier's name, address and GSTIN, a serial number of up to 16 characters, the date, the recipient's details, the HSN or accounting code, a description, the value after any discount, and a signature. A composition taxpayer also writes “Composition taxable person, not eligible to collect tax on supplies”.
Who issues a bill of supply
- Composition taxpayers: registered businesses that opted for the composition scheme pay tax at a prescribed percentage of their turnover and cannot collect GST from customers. They issue a bill of supply for their sales.
- Suppliers of exempt goods or services: a registered person who supplies something that is exempt from GST issues a bill of supply for it, because there is no tax to show.
A registered business that sells both taxable and exempt items uses a tax invoice for the taxable supplies and a bill of supply for the exempt ones. The rules allow a combined document in some cases, so ask your CA how to handle mixed sales. If you are not registered at all, you do not issue a bill of supply. Use a plain invoice instead, as described in our invoice format without GST.
Details a bill of supply should carry
CGST Rule 49 lists the particulars of a bill of supply. In plain words:
- The supplier's name, address and GSTIN. Put these in the From box.
- A consecutive serial number of up to 16 characters, made of letters, numbers, a hyphen or a slash, and unique for the financial year. For example BOS/26-27/001.
- The date of issue.
- The recipient's name and address, with their GSTIN or UIN if they are registered. Put these in Bill to.
- The HSN code for goods, or the accounting code (SAC) for services.
- A description of the goods or services.
- The value of the supply after any discount or abatement. Because no tax is added, this is also the total.
- The signature or digital signature of the supplier or an authorised representative. The generator does not place a signature for you, so sign the PDF or the printed copy.
The composition declaration
A composition taxpayer writes this line on the bill of supply:
Composition taxable person, not eligible to collect tax on supplies
In the generator, click Composition dealer under Declaration and the line is printed in bold at the top of the bill of supply, under the title, on screen and in the PDF. That matches the composition rules, which ask for the wording at the top of the bill.
Bill of supply vs tax invoice
| Bill of supply | Tax invoice | |
|---|---|---|
| Issued by | Registered composition taxpayers, and registered suppliers of exempt goods or services | Registered suppliers of taxable goods or services |
| GST charged | No | Yes: CGST + SGST or IGST |
| Tax lines | None | Rate and amount of each tax |
| Customer's input tax credit | None, because no GST is charged | Possible, subject to the GST conditions |
| Extra wording | Composition taxpayers add the composition declaration | Place of supply and the tax details |
| Rule | CGST Rules, Rule 49 | CGST Rules, Rule 46 |
Make a bill of supply here
- The generator above opens in rupees with the title set to Bill of Supply, the tax rate at 0 and the composition declaration filled in.
- Add your name, address and GSTIN in From, and the customer's details in Bill to.
- Replace the example line with your goods or services and the right HSN or accounting code. The example uses HSN 6109, which is for knitted T-shirts, so use the code for your own goods.
- Check the notes lines for your GSTIN, bank and UPI details.
- Click Download PDF and choose Save as PDF.
Official sources
Rule 49 and the composition rules are published on the CBIC tax information site. Registration and filing information is on the GST portal.
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FAQ
Who has to issue a bill of supply?
Registered composition taxpayers, and registered suppliers of exempt goods or services, issue a bill of supply instead of a tax invoice. Businesses that are not registered are not required to issue one.
Can I charge GST on a bill of supply?
No. A composition taxpayer cannot collect tax from customers, and an exempt supply has no tax to collect, so a bill of supply shows no GST.
How long can a bill of supply number be?
The serial number can have up to 16 characters, made of letters, numbers, a hyphen or a slash, and it should be unique for the financial year. BOS/26-27/001 is one example.
Do I need a GSTIN to issue a bill of supply?
Yes. A bill of supply comes from a registered supplier and shows the supplier's GSTIN. If you are not registered, issue a plain invoice without a GSTIN.
Is a bill of supply the same as an invoice without GST?
No. A bill of supply is for registered composition taxpayers and exempt supplies. An unregistered freelancer or small business issues a plain invoice.
General information, not tax advice. GST rules change; check the GST portal or ask a chartered accountant.
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Last updated · Written by the Rooh Sites team. This page is general information, not tax or legal advice.