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What is a Bill of Supply?

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What is a bill of supply under GST? 

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


24th February 2022

CBIC notified the reduction in the applicability of the GST e-invoicing threshold from Rs 50 crore to Rs 20 crore with effect from April 1st April 2022.

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

Difference between tax invoice and bill of supply


Tax Invoice

Bill of Supply

It is issued in case of normal supply.

It is issued in case of exempt supply or supply by composition taxpayer.

It contains the tax rate and tax amount.

It does not contain the tax rate and tax amount.

Input tax credit can be claimed on the basis of a tax invoice.

Input tax credit cannot be claimed on the basis of a bill of supply.

Tax can be collected from the customer by issuing a tax invoice.

Tax cannot be collected from the customer by issuing a bill of supply.

Frequently asked questions (FAQs)

In such a case the person can issue one tax invoice for the taxable invoice and also declare exempted supply in the same invoice.

You can supply goods or services or both on bill of supply without mentioning GSTIN and/or ARN. On receipt of GSTIN, you will need to issue revised invoice mentioning GSTIN. You are required to reflect this supply in your return and also pay tax thereon.

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CA Anand Singh

CA Anand Singh

I am a practising Chartered Accountant with 6 years of experience in Direct and Indirect Taxation, FEMA, Corporate Law and Audit etc.