Bill of supply under GST
A bill of supply is the GST bill that charges no tax. If you are on the composition scheme, or you sell only goods or services that are exempt from GST, you issue a bill of supply instead of a tax invoice. It looks like an invoice, but has no CGST, SGST or IGST on it.
बिल ऑफ़ सप्लाई क्या होता है?
बिल ऑफ़ सप्लाई वह बिल है जिसमें कोई GST नहीं लगता। अगर आप कंपोज़िशन स्कीम में हैं, या सिर्फ़ GST से छूट वाला सामान या सेवाएं बेचते हैं (जैसे ताज़ी सब्ज़ियाँ, किताबें), तो आपको टैक्स इनवॉइस की जगह बिल ऑफ़ सप्लाई देना होता है। कंपोज़िशन डीलर को बिल के ऊपर यह लिखना ज़रूरी है: "Composition taxable person, not eligible to collect tax on supplies"। ग्राहक इस बिल पर इनपुट टैक्स क्रेडिट नहीं ले सकता।
Who must issue a bill of supply
Section 31(3)(c) of the CGST Act says a registered business issues a bill of supply, instead of a tax invoice, in two situations:
| Your situation | Which bill |
|---|---|
| On the composition scheme — a small business paying a flat rate on turnover | Bill of supply for every sale |
| Regular GST registration, selling exempt items — fresh vegetables, unbranded rice, printed books and similar | Bill of supply for those sales |
| Regular GST registration, selling items that carry GST | Tax invoice |
A composition dealer cannot charge GST to customers at all. They pay a small percentage of their turnover to the government from their own pocket — generally 1% for traders and manufacturers, 5% for restaurants and 6% for other service providers — which is why the bill must not show any tax.
Bill of supply vs tax invoice
| Bill of supply | Tax invoice | |
|---|---|---|
| GST shown and collected | No | Yes — CGST + SGST, or IGST |
| Buyer can claim input tax credit | No | Yes, if the buyer is registered |
| Heading on the document | "Bill of Supply" | "Tax Invoice" |
| Composition declaration at the top | Yes, for composition dealers | Not applicable |
| Who issues it | Composition dealers; sellers of exempt items | Regular GST-registered sellers |
What a bill of supply must contain
Rule 49 of the CGST Rules lists the details. In plain language, with how this tool handles each:
| Required on the bill | In this tool |
|---|---|
| Your name, address and GSTIN | ✓ Saved once, filled in every time |
| A serial number — consecutive, unique in the financial year, up to 16 characters (letters, numbers, - or /) | ✓ Numbers itself, continuing from your last bill |
| Date of issue | ✓ Today by default |
| Customer's name and address, and GSTIN if they are registered | ✓ |
| HSN code for goods, SAC for services | ✓ You enter the code |
| Description of the goods or services | ✓ |
| Value of the supply, after any discount | ✓ Enter the rate after discount |
| Signature of the supplier or an authorised person | ✓ A signature line is printed for you to sign |
| Composition dealers only: "Composition taxable person, not eligible to collect tax on supplies" at the top (Rule 5) | ✓ Added at the top when you tick "I'm under the composition scheme" |
How many digits of HSN code you need depends on your turnover in the previous year — 4 digits up to ₹5 crore, 6 digits above that, as for tax invoices.
Sample bill of supply format
Here is how a composition dealer's bill of supply looks. Notice what is missing: there is no CGST, SGST or IGST line anywhere.
Main Bazaar, Agra
GSTIN: 09XXXXX1234X1ZX
State: Uttar Pradesh (09)
| Description | Qty | Rate (₹) | Amount (₹) |
|---|---|---|---|
| Toor dal (1 kg pack) HSN 0713 | 5 | 160.00 | 800.00 |
| Mustard oil (1 litre) HSN 1514 | 3 | 190.00 | 570.00 |
| Total value | 1,370.00 | ||
Authorised signatory
The GSTIN above is a placeholder. A real bill would carry your own GSTIN and your customer's details.
Mistakes to avoid
- Showing GST on the bill. A composition dealer adding a CGST or SGST line is collecting tax they are not allowed to collect.
- Calling it a "Tax Invoice". The heading must say bill of supply.
- Leaving out the composition line, or putting it somewhere other than the top.
- Promising input tax credit. A business customer cannot claim credit from a bill of supply — worth saying upfront so there is no dispute later.
How to make one here
- Open the invoice maker with Bill of Supply selected.
- If you are a composition dealer, keep "I'm under the composition scheme" ticked — the required line is printed at the top. Untick it if you are a regular dealer selling exempt items.
- Fill in your business once (it is remembered on this device), then the customer and the items. No GST is added.
- Click Print Invoice and choose Save as PDF to send it.
The maker also does tax invoices, quotations and export invoices — see the GST invoice generator guide.
Frequently asked
Can my customer claim input tax credit on a bill of supply?
No. There is no GST on a bill of supply, so there is nothing for the buyer to claim. This is one reason some business customers prefer to buy from regular GST-registered sellers.
Does a composition dealer pay any GST?
Yes, but not by charging customers. They pay a small percentage of their turnover — generally 1% for traders and manufacturers, 5% for restaurants and 6% for other service providers — from their own funds, and file a simple quarterly statement instead of monthly returns.
I sell both taxable and exempt items. Which bill do I use?
A regular dealer issues a tax invoice for taxable items and a bill of supply for exempt ones. If both are sold together to an unregistered customer, the rules allow a single combined document in some cases — check with your accountant how you should present it.
Can I make a bill of supply on my phone?
Yes. The maker works in the phone's browser with no app or signup, and you can save the bill as a PDF to share on WhatsApp.
Before you rely on this
This page is a plain-language reference, not legal advice. The rules quoted are Section 31(3)(c) of the CGST Act and Rules 5 and 49 of the CGST Rules; they can be amended. For a specific situation — mixed taxable and exempt sales, or moving in or out of the composition scheme — confirm with the current CBIC rules or a tax professional. If something here looks wrong, tell us.
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