Bill of Supply
1. What is bill of supply in GST
It is a document to be issued by a registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 instead of a tax invoice.
2. Who should issue bill of supply and when?
- Composition Scheme dealers :
- Having turnover of less than Rs. 1.5 Crores
- Those who can only deposit tax on their receipt themselves and not by way of collecting taxes from their buyers
- They cannot charge GST on their invoices and hence GST bill of supply is issued by them
- Exporters :
- Export supplies are zero rated or non-taxable and hence bill of supply is issued by them
- Must mention the following in their bill of supply under GST
- Suppliers engaged in supply of exempted goods : Whenever a registered dealer engage in supplies of exempt goods or services, they are required to issue bill of supply in GST
"Supply Meant For Export on Payment of IGST"/ "Supply Meant For Export Under Bond Or Letter Of Undertaking Without Payment Of IGST"
For example, when a registered taxpayer provides unprocessed agricultural products they have to issue a Bill of Supply instead of a tax invoice.
3. Bill of supply format under GST
A bill of supply GST shall be issued by the supplier containing the following details:
- Trade name, address and Goods and Services Tax Identification Numberof the supplier;
- Consecutively numbered serial numbers, not exceeding sixteen characters in one or multiple series, unique for a financial year;
- Date of its issue;
- Trade name, address and Goods and Services Tax Identification Number or Unique Identity Number, if registered, of the recipient;
- Harmonised System of Nomenclature Code for goods or services;
- Description of goods or services or both;
- Value of supply of goods or services or both considering discount or abatement, if any; and
- Designations in form of signature or digital signature of the supplier or his authorized representative;
4. GST bill of supply: for a non taxable supply
It is laid in the GST Act that any tax invoice or any other similar document issued in respect of any non-taxable supply shall be treated as a bill of supply for the purposes of the Act.
5. Bill of supply in GST to accompany transport of goods
Yes, the person-in-charge of the conveyance must carry a copy of the bill of supply.
6. What is tax invoice cum bill of suplly GST?
Where the registered person is engaged in effecting both taxable and exempt supplies, he may title the document ‘Tax invoice cum bill of supply’ instead of ‘tax invoice’, ONLY in respect of supplies effected to an unregistered person.
7. What is the relation between input tax credit and GST bill of supply
No relation, as it is not possible to take input tax credit based on the bill of supply.
8. Do provisions of E way bill apply to bill of supply under GST?
Yes, the provisions of E Way bill apply to a Bill of Supply in GST for consignment value exceeding Rs.50,000/-. Consignment value to mean value of supply as mentioned on the invoice including the applicable tax thereon.