Bill of supply under GST – How and When to issue the bill of Supply under GST – with format

1.0 Introduction

In our previous articles, we have discussed and understood the importance of invoices in GST and how to use them. Today we will further widen our knowledge by discussing in this article about the bill of supply.

Bill of supply is different from tax invoice. Bill of supply is the documents which are issued when a registered person is either dealing in exempted goods or services or he has availed the composition scheme.

We will be discussing the topic in detail to make it comprehensible for everyone.

2.0 What is a bill of supply under GST?

As explained above, a bill of supply is when a registered taxable person is supplying on taxable goods/exempted goods or services or he has opted for composition scheme under GST.

The particulars of the bill of supply are almost similar to tax invoice except the tax charged. The basic difference is that the tax component does not exist in the bill of supply. The registered person cannot charge tax to the buyer.

3.0 When a bill of supply is issued by the supplier under GST?

As per law for every sale/supply tax invoice is issued. However, there are certain situations where the bill of supply is issued in respect of the supply made.

The following are the circumstances when registered person is liable to issue the GST bill of supply instead of tax invoice-

• Supply of not taxable goods/exempted goods by a registered taxable person
• Registered person has opted for composition levy
• Unregistered person

Issue of bill of supply by unregistered person

The GST law does not apply to the unregistered person and hence, the unregistered person is not bound by the tax invoice rules. However, still, the person can opt to issue a bill of supply for every supply made as it will make his business more transparent and accountable.

Case where invoice value is less than Rs.200

When the value of goods or services is less than Rs.200 then the bill of supply will not be issued separately for the invoice rather he may choose to prepare a consolidated bill at the end of each day with the goods whose amount was below Rs.200 and bill of supply was not issued.

4.0 How to issue bill of supply under GST

Now that we are aware of the bill of supply let us discuss how to issue the same.

There is no prescribed format provided by the government for a bill of supply. However, they have provided the mandatory particulars to be added in it.

Let’s understand the same in steps:

#Step no.1 – Confirm the nature of goods

It is important for every taxpayer to be able to distinguish between taxable and on taxable goods. In case the goods a supply is trading are taxable goods then tax invoice has to be raised not a bill of supply.

However where the goods are nontaxable then the bill of supply is mandatory. Few examples of nontaxable goods are flour, sugar, bread, milk etc.

#Step no.2 – Nature of taxpayer under GST

The nature or kind of taxpayer determines what kind of bill will be generated. If the person is a regular registered person under GST then tax invoice is issued however in the case but if he has opted for composition than the bill of supply is issued.

Similarly, a person who is not registered in GST is not required to pay tax under GST.

#Step no.3 – Creating bill of supply with proper details

The bill of supply does not have any prescribed format but there are certain mandatory particulars which must be there in the bill of supply. Further, if the bill of supply is not issued properly, then the taxpayer may face the penal action from the government.  

Few example of detail which should be there in every bill of supply-

• Name, address and GST number of the supplier
• Date of issue
• Name address and GST number (if registered) of the recipient/buyer
• HSN codes of the goods
• Value of goods
• Signature
• HSN/SAC code

#Step no.4 – Keep proper record and file the same in GSTR 1

Once the bill of supply is issued, the taxpayer must maintain the file of the bill of supply and also should upload the details in GSTR 1 for the relevant month.

5.0 Format of Bill of Supply as per Rules

6.0 Conclusion

If you have any doubts or query related to GST email us at info@hubco.in.

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