Bill of Supply

In this article, we will discuss the Bill of Supply. Here we have explained the bill of supply, Who is required and It's the format.

About Bill of Supply

A business registered under GST issues a tax invoice to the buyer. Such an invoice refers to the GST rate levied on goods and services sold. A bill of supply is issued instead of a regular tax invoice. The bill of supply issued to individuals does not include details related to the rate of tax and the amount of tax to be paid. Even the price mentioned in the bill of supply is not a taxable value.

Who is required to issue the Bill of supply?

1. Composition dealer - A taxpayer eligible for a composition scheme and opts for the composition scheme cannot avail GST on challan, is not eligible to recover tax amount from the customer.

2. Exporters - Export supplies are zero-rated or non-taxable, and hence bills of supply are issued by them. For example, when a registered taxpayer provides unproven agricultural produce, they should issue a supply bill instead of a tax invoice.

3. Supplier of Exempted goods or services - Any taxpayer supplying any goods or services which is chargeable to GST but not chargeable to tax, in such cases the registered persons' issue bills as proof of sale instead of tax invoice.

Bill of supply is not issued

1. when a business is involved in selling GST subsidized goods or services, then it cannot issue the Bill of Supply.

2. Exporters should not issue bills of supply, when goods exported are zero-rated under the GST regime.

3. When composition dealers make sales, you will be unable to collect GST from customers, claim ITC, or issue tax invoices.

Bill of supply format includes

1. Name, address & GSTIN of supplier

2. Consecutively numbered serial numbers, not exceeding sixteen characters in one or multiple series, unique for a financial year.

3. Date of issue

4. Supplier details - Trade name, address, and Goods and Services Tax Identification Number or Unique Identity Number, if registered, of the recipient.

5. HSN code in case of goods or SAC code in case of services

6. Description - Goods or services or both

7. Value of supply ( after discount, if any)

8. Signature - Designations in the form of a signature or digital signature of the supplier or his authorized representative.

Note: If the recipient is not registered under GST, it’s mandatory to mention the name, address, and supply on the Bill of supply for transactions worth over Rs. 50,000.

When is a bill of supply not required?

1. When the recipient is not registered under GST.

2. The total value of the supply is less than Rs. 200.

Disclaimer: This article is intended for general consumption only. The information in the article was accurate at the time of publication, but it is subject to change due to changes in government rules and regulations. The contents of the blog may not be copied unless prior permission is obtained.

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