What is a Bill of Supply under GST?

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. This means that, a Bill of Supply does not contain any tax.

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

Following Individuals can issue a Bill of Supply

  • 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

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
    • The legal name of the business
    • The registered address of the business
    • GSTIN of the state from which goods or services are supplied
  2. Buyer’s details
    • The legal name of the business
    • The registered address of the business
    • GSTIN of the state to which goods or services are delivered
    • Additionally, also provide a 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 i.e Name of the state as per the place of supply rules which is generally the state of the buyer. [Read More: List of State Codes under GST]
  4. Item details
    • HSN Code of Goods or SAC Code of Services as per the turnover limit applicable to the seller
    • Item name describing goods or services.
    • Quantity in case of goods and UQC i.e. Unit Quantity Code [List of Unit Quantity Codes (UQC) under GST]
    • Item Rate – the price of the of good or service
    • The total value of supply of goods or services or both, taking into account the discount or abatement if any
  5. A signature or Digital Signature of the supplier or his authorized representative

Sample Bill of Supply

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FAQs

1. What is the difference between invoice and bill of supply?

An Invoice is a Commercial instrument issued by the seller to the buyer. It highlights information related to trading parties, items sold and other information related to the sale. When businesses registered under GST cannot charge any tax on the invoice issued by them, a Bill of Supply is issued.

2. Is HSN Code necessary for bill of supply?

Suppliers are required to compulsorily display the HSN Code for the Goods or Service supplied under an Invoice.

3. What is HSN code list?

The ‘Harmonized System of Nomenclature’ i.e HSN is used worldwide for the systematic classifications of the goods. It is a globally accepted 6-digit uniform code.

Got Questions? Ask Away!

  1. Hey @Rakesh_Sharma

    One must have 3 copies of Supply of Service and 2 for Supply of Goods.

    For Supply of Service:

    1. Original for Recipient
    2. Duplicate for Supplier

    For Supply of Goods:

    1. Original for Recipient
    2. Duplicate for Transporter
    3. Triplicate for Supplier

    Hope this helps!