Section 31(3)(c) Guide · Composition & Exempt Sales
Bill of Supply – Format, Rules & GST Compliance
Understand when to issue a Bill of Supply under Indian GST, mandatory fields required by law, and how it differs from a standard Tax Invoice.
Tax Invoice vs Bill of Supply
| Key Factor | Tax Invoice | Bill of Supply |
|---|---|---|
| Primary Purpose | Issued for taxable sales where GST is charged | Issued for exempt sales or by Composition Scheme dealers |
| GST Tax Charged | Yes (CGST, SGST, IGST clearly mentioned) | No (Tax cannot be charged from the buyer) |
| Input Tax Credit (ITC) | Buyer can claim Input Tax Credit | Buyer cannot claim any Input Tax Credit |
| Mandatory Heading | "Tax Invoice" | "Bill of Supply" (with composition statement if applicable) |
Mandatory Fields in a Bill of Supply
- Supplier Name, Address, and GSTIN
- Consecutive Serial Number (Max 16 chars)
- Date of Issue
- Recipient Name, Address, and GSTIN (if registered)
- HSN / SAC Code for Goods or Services
- Value of Goods/Services (After discount)
- Authorized Signature or Digital Signature
Related Invoicing Tools & Guides:
Bill of Supply FAQs
Who must issue a Bill of Supply instead of a Tax Invoice?
A Bill of Supply must be issued by: 1) Composition Scheme dealers registered under Section 10 of the CGST Act, and 2) Registered taxpayers supplying 100% GST-exempted goods or services.
Can a composition dealer charge GST on a Bill of Supply?
No. Under Section 10 of the CGST Act, composition dealers are strictly prohibited from collecting any GST from customers. They must mention "Composition taxable person, not eligible to collect tax on supplies" at the top of the Bill of Supply.
Can a buyer claim Input Tax Credit on a Bill of Supply?
No. Because a Bill of Supply contains no tax component, no Input Tax Credit (ITC) can be claimed by the recipient.