Billing › Bill of supply

Bill of supply: format and when to use it

A bill of supply is a bill without GST. It is issued when the seller can't charge tax: either the seller is in the composition scheme, or what is sold is exempt from GST.

Who issues a bill of supply

• Composition dealers: they pay tax at a fixed rate on turnover and are not allowed to collect GST from buyers.
• Registered sellers selling exempt goods or services, for example fresh fruit and vegetables, fresh milk, or certain education and health services.

When one sale has both taxable and exempt items, a single invoice-cum-bill of supply may be issued.

What it must show

• Your name, address and GSTIN.
• A serial number, up to 16 characters, unique in the financial year.
• Date of issue.
• Buyer's name, address and GSTIN if registered.
• HSN or SAC code, description and value of the goods or services.
• Your signature or that of someone you authorise.

Composition dealers must also write: "Composition taxable person, not eligible to collect tax on supplies". The bill of supply maker prints this line for you.

As with tax invoices, a bill is not needed for a sale under ₹200 to someone who doesn't ask for one, as long as a daily summary is kept.

Bill of supply vs tax invoice

Make one

Open the invoice maker and choose Bill of supply as the type. The GST columns disappear, the totals show no tax, and the composition note is printed.