Introduction:

The provisions relating to bill of supply under gst are provided under section 31(3)(c)  of the CGST Act. Normally a registered person issues a tax invoice for the supply of goods or service or both. But there are circumstance where the registered person issues bill of supply instead  of tax invoice under the GST act. In this article we shall discuss about the classes of person who required to issue bill of supply instead of tax invoice.

What is bill of supply under GST ?

Bill of supply is a document issued instead of Tax Invoice in case of a registered person supplying exempted goods or service or both or a registered person paying tax under composition scheme. Bill of supply issued by such persons does not contain the details pertaining to the rate of tax and the amount of tax on the assessable value. Also, the value mentioned in the Bill of Supply is not a taxable value.

Who are the persons required to issue bill of supply under GST?

Following are the persons required to issue bill of supply instead of tax invoice

Composition dealer

Every registered person who is eligible and opt for composition scheme under the GST Act, should issue a bill of supply instead of tax invoice. Eligible person for composition scheme has been explained in detail in the our previous article. you can read by clicking here – Composition Scheme

Supplier of exempted goods

When a supplier supplies the goods or service which are exempted from tax are required to issue  a bill of supply instead of tax invoice. Details regarding the exempted goods and service are explained in our previous article. Click here –Exemptions from GST for Goods and Services.

Exporters

In case of export of goods or services or both, bill of supply should be issued in place of Tax invoice since the export supplies are zero rated supplies.

Particulars of bill of supply under GST

1. Name, address and GSTIN of the supplier
2. 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 financial year
3. Date of issue
4. Name, address and GSTIN or UIN, If registered, of the receipient
5. HSN code for goods or SAC code for services
6. Description of goods or services or both
7. Value of supply of goods or services or both taking into account discount/ abatement, if any
8. Signature or electronic signature

Invoice – cum – bill of supply under GST ( Rule 46 A)

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.

Number of HSN digits required on tax invoice under GST

1. Annual turnover in the preceding financial year is less than 1.5 crores,  in such a case HSN code not required
2. Where annual turnover is greater than 1.5 Crore  to 5 crores –  its 2 digts
3. Above 5 crores – 4 digit

Conclusion:

Bill of supply is a document issued instead of tax invoice by composition dealers, exporters, and the supplier of exempted goods or services. Person opting for composition levy shall mention the words “ Composition taxable person, not liable eligible to collect tax on supplies” at the top of the bill of supply issued by him. Hope this article may be useful for understanding the provision related to bill of supply under GST.

Disclaimer: The content and views stated in this article is solely for informational purpose only.

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