Glossary
What is a bill of supply?
The invoice you issue when there is no GST to charge.
Updated
In short
A bill of supply is the document issued instead of a tax invoice when no GST is charged, for exempt goods or by a composition dealer. SimpleERP prints invoices as bills of supply when the business has no GSTIN.
A bill of supply is the document a business issues instead of a tax invoice when it charges no GST: for exempt goods or services, or when it is a composition dealer, which pays tax on turnover and cannot collect it from buyers. It carries the same basic details as a tax invoice, the parties, a serial number, date, HSN or SAC and value, but no tax rate or amount. The buyer cannot claim input tax credit on it.
Bill of supply: a worked example
Suppose a small furniture trader in Pollachi, registered under the composition scheme, buys racks from Lakshmi Steel Furnitures and sells 4 office chairs to a school for ₹25,800. It issues a bill of supply for ₹25,800 with no GST line, marked as issued by a composition taxable person. It pays its own composition tax on the sale, and the school cannot claim any credit.
| Tax invoice | Bill of supply | |
|---|---|---|
| Who issues it | Regular GST-registered business | Composition dealer, or for exempt supplies |
| Shows GST | Yes, by tax and rate | No |
| Buyer can claim ITC | Yes | No |
FAQ
Questions, answered
Can I issue a tax invoice and a bill of supply together?
A tax invoice and a bill of supply can be combined when one sale mixes taxable and exempt goods to an unregistered buyer, a single invoice-cum-bill of supply can cover both. For registered buyers, keep the taxable lines on a tax invoice so their credit is clear.
What must a bill of supply say?
Your name, address and GSTIN, a serial number of up to 16 characters, the date, the buyer's details if registered, HSN or SAC codes, a description and the value, with a signature. A composition dealer must also state that it is a composition taxable person.
Do I need a bill of supply if I am not registered for GST?
There is no GST rule for unregistered businesses, but a clear bill with your details, the buyer, the goods and the amount is still good practice. SimpleERP prints this format when your settings have no GSTIN.
Is a bill of supply needed for very small sales?
For sales to unregistered buyers below ₹200, a bill of supply need not be issued for each sale, if the buyer does not ask for one. A consolidated bill for such sales at the end of the day is enough.
Related
Keep reading
Tax invoice
The document a GST-registered business issues for a taxable sale, with the mandatory GST fields.
Read moreComposition scheme
An option for small businesses to pay GST at a flat rate on turnover, without input credit.
Read moreGST invoice format
The fields a GST tax invoice must carry, how place of supply picks CGST and SGST or IGST, HSN and SAC codes, and a worked invoice.
Read more
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