In goods and services tax law, a registered person opting for composition levy should not collect GST from the recipient. Similarly, a registered person supplying exempted goods or services or both is not required to charge GST to recipients. As these suppliers do not charge tax, recipient should not expect tax invoice from them. Therefore, in the following two cases, bill of supply is issued under GST law instead of tax invoices;
- When a registered person is supplying exempted goods or services or both,
- When a registered person has opted for composition scheme.
If a registered person is supplying taxable as well as exempted goods or services or both to an unregistered person, then he has option to issue “invoice-cum-bill of supply” for all such supplies.
Taxable person in composition scheme cannot issue tax invoice, instead they issue Bill of Supply as per GST law. Composition dealers shall mention the word “composition taxable person, not eligible to collect tax on supplies” at the top of the bill issued by him.
If the person ceases to comply with the conditions of composition scheme, after intimating the withdrawal of composition scheme, issue tax invoices from the date of cessation instead of bill of supply.
Particulars of a bill of supply in GST
A bill of supply shall be issued by the supplier containing the following details;
- Name, address and GSTIN of the supplier;
- Serial number not exceeding 16 characters, in one or multiple series, unique for a financial year;
- Date of its issue of bill;
- Name, address of the recipient;
- GSTIN of the recipient, if registered under GST law;
- HSN for goods or services;
- Description of goods or services or both;
- Value of supply of goods or services or both taking into account discount or abatement, if any;
- Signature or digital signature of the supplier or his authorised representative.
