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What is a Bill of Supply?

A tax invoice shall be issued by a GST registered person for making any taxable supply of goods or services. However, section 31(3)(c) of CGST Act, 2017 stipulates that a registered person engaged in the supply of exempted goods or services or a composition taxpayer shall issue a bill of supply instead of a tax invoice.

Basically, a bill of supply is issued by the registered supplier in lieu of a tax invoice when GST is not levied on the transaction or when GST need not be collected from the customer.

What is a Bill of Supply under GST?

  • Bill of supply is evidence of tax-free supply and the taxes cannot be collected from the buyer of goods or services.
  • It does not contain the details related to the tax rate and amount of tax. Further, value to be given in the Bill of Supply is not also taxable value.
  • Bill of supply is not required to issue if the value of goods or services is less than Rs 200.
  • Where a registered person is supplying taxable as well as exempted goods or services or both to an unregistered person, a single “invoice-cum-bill of supply” may be issued for all such supplies,
  • Any tax invoice or any other similar document issued under any other Act for non-taxable supply shall be deemed as a bill of supply.



Recent updates


20th September 2021

CBIC has clarified that there is no need to carry the physical copy of the tax invoice in cases where an e-invoice has been generated by the supplier. Production of the Quick Response (QR) code having an embedded Invoice Reference Number (IRN) electronically, for verification by the proper officer, would suffice. (Circular No. 160/16/2021 - GST)

Who is required to issue a bill of supply under GST?

(i) Any registered person making the supply of exempted goods or services.

(ii) Composition dealer (the person who opted to pay tax under the GST composition scheme). The dealer shall mention the words “composition taxable person, not eligible to collect tax on supplies” at the top of the bill of supply.

(iii) Exporter, as he is not required to collect GST, can issue a bill of supply. The exporter has to additionally mention on the bill of supply that “Export on payment of IGST” or “Export under bond/LUT without payment of IGST”

Particulars of Bill of Supply

A bill of supply has the following fields-

a, Name, address and GSTIN of the supplier;

b. A consecutive serial number not exceeding 16 characters, in one or more multiple series, containing alphabets or numerals or special characters - hyphen or dash and slash and any combination thereof, unique for a FY;

c. Date of its issue; Name, address and GSTIN or UIN, if registered, of the recipient;

d. HSN Code for goods or services;

e. Description of goods or services or both;

f. Value of supply of goods or services or both taking into account discount/ abatement, if any; and

g. Signature or digital signature of the supplier.

Format of Bill of Supply

Format of Bill of Supply under GST


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TaxGyata Team

TaxGyata Team