What is a Bill of Supply under GST?

By Sakshi Shah on April 1, 2019

Just like a retail invoice under the current tax regime, there is a concept of Bill of Supply under GST.

A Bill of Supply is a document issued by a seller to the buyer when GST cannot be charged by the seller or when the nature of transaction does not attract GST. Thus, a Bill of Supply does not contain any tax.

A Bill of Supply need not be issued if the value of supply is less than Rs.200 subject to specified conditions.

Who should issue a Bill of Supply ?

A Bill of Supply can be issued by the following persons:

  • A Registered Seller supplying exempted goods or services to a Registered Buyer or Unregistered Buyer.
  • A Registered Seller who has opted for the Composition Scheme u/s 10 of the GST Act on the supply of goods or services
What is Composition Scheme under GST?

What are the details required in a Bill of Supply?

The supplier is free to design the format of Bill of Supply provided it contains all the mandatory details prescribed by the GST Invoice Rules.

As per the GST Invoice Rules, a Tax Invoice must have the following details:

  1. Seller’s details
    • Legal name of the business
    • Registered address of the business
    • GSTIN of the state from which goods or services are supplied
  2. Buyer’s details
    • Legal name of the business
    • Registered address of the business
    • GSTIN of the state to which goods or services are delivered
    • Delivery address if is different from the registered address
  3. Invoice details
    • Invoice Number – A serial number, containing alphabets or numerals or special characters like hyphen or dash (-) and slash (/) unique for a financial year
    • Date of Invoice
    • Place of Supply – Name of the state as per the place of supply rules. It is generally the state of the buyer. [Read More: List of State Codes under GST]
  4. Item details
  5. Signature or Digital Signature of the supplier or his authorized representative

Sample Bill of Supply