What is a Bill of Supply?

As per the Goods and Services Tax (GST) regulations, a Bill of Supply is a document that serves as an alternative to a tax invoice. It is issued by registered persons who are exempt from tax or who operate under the composition scheme.

Contents of a Bill of Supply

A Bill of Supply should contain the following information:

Name, address, and GSTIN of the supplier
A consecutive serial number not exceeding 16 characters, in one or multiple series, containing alphabets or numerals or special characters such as hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year
Date of issue of the Bill of Supply
Name, address, and GSTIN or UIN, if registered, of the recipient
Description of goods or services or both
Value of goods or services or both taking into account discount or abatement, if any
Signature or digital signature of the supplier or his authorized representative

Note that the Bill of Supply does not contain any tax details as it is meant for supplies that are exempt from tax or where the supplier operates under the composition scheme.

When is a Bill of Supply used?

A Bill of Supply is used in the following cases:

When the supplier is engaged in the sale of exempted goods or services, and therefore does not require a GST tax invoice
When the supplier is registered under the composition scheme and is not required to pay tax on the supplies made by him

Conclusion

The Bill of Supply is an essential document for registered persons who are exempt from tax or who operate under the composition scheme. It is important to ensure that all necessary details are mentioned in the Bill of Supply to avoid any discrepancies.