Bill of Supply under GST: Meaning, Format, and When to Issue It

Rule 49 of the CGST Rules, 2017 prescribes the particulars for a bill of supply. Use the applicable requirements as a checklist when creating the document in an accounting system.

Rule 49 prescribes a serial number of not more than 16 characters, in one or more series, unique for the financial year. Check the applicable coding requirement for the goods or services supplied.

A signature or digital signature is not required for an electronic bill of supply issued in accordance with the Information Technology Act, 2000, subject to the applicable rule.

The following is an illustrative example of a bill of supply issued by a composition taxpayer. Please note that the supplier, recipient, and transaction are fictional.

The Rs. 100 amount is only an illustration of document format. It does not establish a market price or GST rate. Apply the GST treatment applicable to the actual supply.

A tax invoice documents a taxable supply by a registered supplier, while a bill of supply is used for specified exempt supplies or supplies made by a registered composition taxpayer. The documents differ in whether GST is charged separately and how the recipient can use the document for an ITC claim.

A tax invoice does not automatically establish eligibility for input tax credit (ITC). The recipient must satisfy all applicable conditions under GST law. A bill of supply remains an important purchase record even though it does not show GST charged to the recipient.

A bill of supply provides a transaction record where GST law requires this document instead of a tax invoice. It also helps the supplier and recipient understand why GST has not been charged separately.

• It records the value and description of the supply.
• It helps distinguish an exempt supply or composition-scheme supply from a taxable supply requiring a tax invoice.
• It supports consistent accounting and GST records.
• It communicates that GST has not been charged separately to the recipient.
• It provides documentary evidence for the underlying business transaction.

The document should match the actual GST treatment of the transaction. Issuing the wrong document can create accounting, reconciliation, and compliance issues.

• Confirm the GST treatment of the supply and whether it is exempt or otherwise covered by the bill-of-supply provisions.
• Check whether the supplier is registered under the composition scheme.
• Determine whether a tax invoice, bill of supply, export invoice, or invoice-cum-bill of supply is required.
• Check supplier and recipient details, including GSTIN or UIN where applicable.
• Assign the required serial number and issue date.
• Enter the applicable description, HSN/SAC or prescribed code, and value.
• Apply the required composition declaration where the supplier is a composition taxpayer.
• Check the signature requirement for the chosen method of issuing the document.
• Retain the document and corresponding transaction records in accordance with applicable GST record-keeping requirements.

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