Bill Of SupplyBill of Supply is issued in cases when a registered person is a supplier of exempted goods/ services or they have opted to pay under GST Composition scheme. In either of these cases, the registered person cannot charge GST to the buyer, and hence there is no tax amount listed on the bill.
A bill of supply is a document of transaction that is different from a normal tax invoice. These bills do not contain any tax amount, as input tax cannot be charged in these cases.
When is bill of supply issued?
Under GST, an invoice or a bill of supply should be issued if goods or services with a value of more than Rs.200 is supplied. Bill of supply is issued instead of an invoice by the supplier if GST is not applicable to the transaction. Hence, the following are some of the instances when a bill of supply is issued instead of a GST invoice.
1 Supplier Not Registered under GST
Entities not registered under GST will not be eligible to collect GST from their customer or claim input tax credit. Hence, entities not registered under GST with a turnover of less than Rs.20 lakhs in most states or Rs.10 lakhs in special category states can issue a bill of supply to the customer without mention of CGST, SGST, IGST and GST Compensation Cess component.
2 Supplier Dealing in Exempted Supplies
If an entity registered under GST is dealing only in exempted supplies, then a bill of supply should be issued instead of a tax invoice.
3 Composition Scheme Dealers
Entities registered under the GST composition scheme can only issue a bill of supply, as they are not eligible to collect GST or claim input tax credit. Further, the bill of supply issued by an entity registered under composition scheme must mention the words “composition taxable person, not eligible to collect tax on supplies” at the top of the bill of supply.
Export of goods is zero-rated under GST and GST is not applicable to a foreign recipient of supply of goods or services. Hence, in the case of exports, bill of supply can be issued by the exporter without mention of CGST, SGST, IGST and GST Cess. Similar to the bill of export issued by a composition scheme dealer, the bill of supply issued by an exporter must mention the following:
- “Supply Meant For Export On Payment Of IGST”
- “Supply Meant For Export Under Bond Or Letter Of Undertaking Without Payment Of IGST”
When billing for exports, the following details related to the buyer are mandatory to be filled in:
Name and address of the buyer
Number and date of application for removal of goods for export
Important Details required in Bill of Supply
- Name, address and GSTIN of the supplier of goods or services.
- Consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters like a hyphen or dash and slash symbolised as “-” and “/”respectively, and any combination there of, unique for a financial year.
- Date of issue of bill of supply
- Name, address and GSTIN of the recipient, if registered under GST
- If the recipient is not registered under GST, the name, address and place of supply must be mentioned on the bill of supply for transactions over Rs.50,000.
- HSN Code of goods or SAC code of service must be mentioned by all entities having more than Rs.1.5 crores of annual turnover.
- Description of goods or services.
- Value of supply of goods or services taking into account discount or abatement, if any
- Signature or digital signature of the supplier or his authorised representative
Requirement of HSN Code as per Turnover
- Turnover less than 1.5 crores- HSN code is not required to be mentioned
- Turnover between 1.5 -5 crores can use 2-digit HSN code
- Turnover above 5 crores must use 4-digit HSN code
Cases where Bill of Supply is not required
The registered person might not issue a bill of supply if the value of supply is less than Rs. 200. He may also decide not to issue when:
- the recipient is not a registered person AND
- the recipient does not require such bill of supply
The registered person shall issue a consolidated bill of supply for such supplies at the end of each day in respect of all such supplies.
For format and detail of Bill of Supply click on the below link