Understanding Bill of Supply in GST

Bill of Supply in GST

In our previous articles, we have provided detailed information on the processes and procedures related to GST invoices. In this piece, we will discuss bills of supply, and why they are needed. A bill of supply is different from a tax invoice as a bill of supply will not contain any tax amount (as tax cannot be charged in these cases).

Understanding Bill of Supply

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.

A bill of supply is issued in cases when a registered person is a supplier of exempted goods/services, OR, if they have opted to pay GST under the 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.

Important Fields in a Bill of Supply

It should have the following details:

  1. Name, address and GSTIN of the supplier

  2. Bill of supply number (it must be generated consecutively and each bill of supply will have a unique number for that financial year)

  3. Date of issue

  4. If the recipient is registered then the name, address and GSTIN of the recipient

  5. HSN Code of goods or Accounting Code for services**

  6. Description of goods/services

  7. Value of the goods/services after adjusting any discount or abatement

  8. Signature of the supplier

Bill of Supply Format for Exports

In cases of exports, it must also contain a declaration whether GST has been paid on such exports. The text to be used in this case is:

Supply Meant For Export On Payment Of IGST

– if IGST has been paid on the exports


Supply Meant For Export Under Bond Or Letter Of Undertaking Without Payment Of IGST

– if IGST has not been paid yet

When billing for exports, the following details related to the buyer are mandatory to be filled in:

1. Name and address of the buyer
2. Delivery address
3. Destination country
4. Number and date of application for removal of goods for export

Reasons to Not Issue a Bill of Supply

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:

  1. the recipient is not a registered person AND

  2. 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.


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