{"id":3236,"date":"2019-01-18T11:40:38","date_gmt":"2019-01-18T11:40:38","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=3236"},"modified":"2020-12-16T17:08:48","modified_gmt":"2020-12-16T11:38:48","slug":"bill-of-supply-under-gst","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/bill-of-supply-under-gst\/","title":{"rendered":"What is Bill of Supply under GST ?"},"content":{"rendered":"\n<p class=\"has-drop-cap\"><span style=\"color: #000000; font-family: Calibri;\">A bill of supply is issued by the business registered under GST. Such businesses are required to issue a tax invoice in their day-to-day business. However, there are certain instances wherein the Bill of supply is issued, although GST is not applicable to that transaction. It is also issued in cases where the Tax is not to be recovered from the ultimate customer. <\/span><\/p>\n\n\n\n<p><span style=\"color: #000000; font-family: Calibri;\">A bill of supply is nothing but a document in the form of Invoice which describes the quantity, product detail, the name of the addressee, GST rate etc.<\/span><\/p>\n\n\n\n<p>Often people confuse the bill of supply with tax invoices. And, again both the terms are distinct from each other which we have discussed later. We have covered the following essential topics in this blog-<\/p>\n\n\n\n<ul><li>Definition<\/li><li>Difference between Bill of Supply and Tax Invoice<\/li><li>Similarities between the above two<\/li><li>Who can issue?<\/li><li>When is it required to be issued?<\/li><li>When is it not required to be issued?<\/li><\/ul>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a33546bdb162\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a33546bdb162\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/bill-of-supply-under-gst\/#Definition_of_Bill_of_Supply\" title=\"Definition of Bill of Supply\">Definition of Bill of Supply<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/bill-of-supply-under-gst\/#Difference_between_Bill_of_Supply_BOS_and_Tax_Invoice\" title=\"Difference between Bill of Supply (BOS) and Tax Invoice\">Difference between Bill of Supply (BOS) and Tax Invoice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/bill-of-supply-under-gst\/#Similarities_between_Bill_of_Supply_BOS_and_Tax_Invoice\" title=\"Similarities between Bill of Supply (BOS) and Tax Invoice\">Similarities between Bill of Supply (BOS) and Tax Invoice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/bill-of-supply-under-gst\/#Who_are_the_people_liable_to_issue\" title=\"Who are the people liable to issue?\">Who are the people liable to issue?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/bill-of-supply-under-gst\/#Exempted_Goods_Suppliers\" title=\"Exempted Goods Suppliers\">Exempted Goods Suppliers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/bill-of-supply-under-gst\/#Composition_Dealer\" title=\"Composition Dealer\">Composition Dealer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/bill-of-supply-under-gst\/#Exporters\" title=\"Exporters\">Exporters<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/learning\/bill-of-supply-under-gst\/#When_is_it_required_to_be_issued\" title=\"When is it required to be issued?\">When is it required to be issued?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/learning\/bill-of-supply-under-gst\/#When_is_it_not_required_to_be_issued\" title=\"When is it not required to be issued?\">When is it not required to be issued?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/learning\/bill-of-supply-under-gst\/#Final_Takeaway\" title=\"Final Takeaway\">Final Takeaway<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/learning\/bill-of-supply-under-gst\/#How_can_Swarit_Advisors_help_you_with_this\" title=\"How can Swarit Advisors help you with this?\">How can Swarit Advisors help you with this?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_of_Bill_of_Supply\"><\/span>Definition of Bill of Supply<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are some taxpayer and businesses that are exempted from the Goods and Services tax despite being registered under GST. Dealers under this business cannot charge any tax on the invoices issued by them. Such invoices are known as Bill of Supply.<\/p>\n\n\n\n<p>Generally, businesses enrolled with <strong>GST&nbsp;<\/strong> issue a tax invoice to the buyer which mentions the GST rate charges on the goods sold and services rendered.<\/p>\n\n\n\n<p>Typically, dealers issue it on a transaction when GST is not applicable or when the customer or receiving person at that point of time isn&#8217;t supposed to pay GST for the item he\/she has purchased.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference_between_Bill_of_Supply_BOS_and_Tax_Invoice\"><\/span><strong>Difference between Bill of Supply (BOS) and Tax Invoice<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td><span style=\"color: #ffffff; font-size: 22px;\"><strong>Bill of Supply<\/strong><\/span><\/td><td><span style=\"color: #ffffff; font-size: 22px;\"><strong>Tax Invoice<\/strong><\/span><\/td><\/tr><tr><td>\n<p style=\"text-align: center;\">It is applicable to all types of exempt sales of goods and services.<\/p>\n<\/td><td>\n<p style=\"text-align: center;\">Applicable to all types of Taxable Sales.<\/p>\n<\/td><\/tr><tr><td>\n<p style=\"text-align: center;\">Since there isn\u2019t any charge; therefore, there isn\u2019t any provision for displaying any tax separately.<\/p>\n<\/td><td>\n<p style=\"text-align: center;\">In the tax invoice, there\u2019s a provision for mentioning CGST, SGST, IGST, and UTGST separately.<\/p>\n<\/td><\/tr><tr><td>\n<p style=\"text-align: center;\">There\u2019s no provision for mentioning all the buyer\u2019s detail as in the case of tax invoices.<\/p>\n<\/td><td> <p style=\"text-align: center;\">If you\u2019re an unregistered buyer and invoice value is more than Rs. 50,000, then name, address, state, place of delivery are mandatorily required.<\/p> <\/td><\/tr><tr><td>\n<p style=\"text-align: center;\">In case of composition dealer, it can be used for only local as they aren\u2019t eligible for interstate sales. However, exempt sales can be made for both central and local sales.<\/p>\n<\/td><td>Tax invoices are for both local and central sales.<\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Similarities_between_Bill_of_Supply_BOS_and_Tax_Invoice\"><\/span>Similarities between Bill of Supply (BOS) and Tax Invoice<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Despite being different from each other, both are related to each other at some points. Those points are as follows:<\/p>\n\n\n\n<ul><li>Name, address, and GSTIN (Goods and Services Tax Identification Number) of the supplier;<\/li><li>Name, address, Unique Identity Number, and GSTIN number of the supplier if he is registered;<\/li><li>Date on which invoice has been issued;<\/li><li>Unique Serial Number of every invoice in one or various series but it must be distinct series for every year;<\/li><li>HSN (Harmonized System of Nomenclature) Code of goods;<\/li><li>Description of goods;<\/li><li>The delivery address;<\/li><li>Total value;<\/li><li>Both the quantity and quantity code or units;<\/li><li>Signature of DSC (<strong><a href=\"https:\/\/swaritadvisors.com\/learning\/how-to-obtain-digital-signature-certificate-in-india\/\" class=\"text-primary\">Digital Signature<\/a><\/strong>) of the Authorized Signatory;<\/li><li>Place of Supply (In the case of Interstate sales).<\/li><\/ul>\n\n\n\n<div style=\"padding: 20px; border: 5px solid #e68939; border-radius: 44px;\">\n<p style=\"text-align: left;\"><strong><em>To be noted:<\/em><\/strong><\/p>\n<p><em>HSN code is mandatory in the following cases:<\/em><\/p>\n<ul>\n<li><em>If the turnover is less than Rs. 1.5 crores, then HSN code isn\u2019t required.<\/em><\/li>\n<li><em>2-digit HSN code is required when the turnover is between Rs. 1.5 crores to 5 crores.<\/em><\/li>\n<li><em>4-digit HSN code is mandatory in the case the turnover exceeds Rs. 5 crores. <\/em><\/li>\n<\/ul>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_are_the_people_liable_to_issue\"><\/span>Who are the people liable to issue?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are certain specified people who can issue a BOS. They are-<\/p>\n\n\n\n<ol><li>Exempted Goods Supplier;<\/li><li>Composition Dealer; and<\/li><li>Exporters<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exempted_Goods_Suppliers\"><\/span><strong><em>Exempted Goods Suppliers<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Exempted goods suppliers are the registered dealers who supply exempt goods and services. Such people are required to issue BOS.<\/p>\n\n\n\n<p>For instance, a registered taxpayer providing unprocessed agricultural products is the one who can\u2019t issue a tax invoice but is supposed to issue a BOS.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Composition_Dealer\"><\/span>Composition Dealer<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Generally, the composition dealers are those who have opted for composition scheme and whose turnover is below Rs. 75 lakh, in case of the North-Eastern State and less than Rs. 1 crore for other states.<\/p>\n\n\n\n<p>Such dealers have to deposit tax on their receipts themselves, and they aren\u2019t eligible for collecting any tax from their buyers, and therefore, they can only issue BOS to their consumers. The composition dealers cannot charge GST in their invoice; instead, they can pay any such tax out of their own pocket.<\/p>\n\n\n\n<p>Being a composition dealer, you need to mention the words \u2018composition taxable person not eligible to collect taxes on supplies\u2019 on the BOS.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exporters\"><\/span>Exporters<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Same as the above two, exporters too can\u2019t issue a tax invoice or charge GST on their invoice and it\u2019s because exports supplies are zero-rated. Therefore, a taxpayer exporting goods can issue a BOS instead of a tax invoice.<\/p>\n\n\n\n<p>The exporter must mention the following in their BOS:<\/p>\n\n\n\n<ul><li>Supply meant for Export on the payment of IGST, and<\/li><li>Supply meant for Export under bond or letter of undertaking without payment of IGST.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_is_it_required_to_be_issued\"><\/span>When is it required to be issued?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is required to be issued in the following cases:<\/p>\n\n\n\n<p>a) In the case where the registered person is a supplier of exempted goods; or<\/p>\n\n\n\n<p><em>For instance, a vegetable vendor would not issue a regular tax invoice on sale but can provide of the bill of supply to his customers. <\/em><\/p>\n\n\n\n<p>b) In the case where the registered person chooses the composition scheme.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_is_it_not_required_to_be_issued\"><\/span>When is it not required to be issued?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following are the cases when a bill of supply is not supposed to be issued:<\/p>\n\n\n\n<p>a) If the value of supplied goods or services is less than Rs. 200;<\/p>\n\n\n\n<p>b) If the recipient is not registered under the GST Act; and<\/p>\n\n\n\n<p>c) If the recipient does not intend to avail or receive any such copy or document or receipt.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Takeaway\"><\/span>Final Takeaway<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>From the above discussion we can safely conclude that irrespective of <a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/gst-registration\"><strong>GST registration<\/strong><\/a>, you can only issue Bill of Supply if you are a\u00a0 composition dealer or exporter or exempted goods supplier. You can\u2019t issue a tax invoice if you fall under any of the formerly described categories.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_can_Swarit_Advisors_help_you_with_this\"><\/span><strong>How can Swarit Advisors help you with this?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Since the format isn\u2019t so easy, we at <strong><a href=\"https:\/\/swaritadvisors.com\" class=\"text-primary\">Swarit Advisors<\/a><\/strong> will help you to make an accurate Bill of Supply so that you don\u2019t find any trouble while dealing with consumers.&nbsp; We shall also assist you in solving legal queries related to Bill of supply under GST. To know more Contact Swarit Advisors.<\/p>\n\n\n\n<div class=\"read\">\n<p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/swaritadvisors.com\/learning\/goods-transport-agency-under-gst\/\">Goods Transport Agency (GTA) under GST<\/a><\/mark>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A bill of supply is issued by the business registered under GST. Such businesses are required to issue a tax invoice in their day-to-day business. However, there are certain instances wherein the Bill of supply is issued, although GST is not applicable to that transaction. It is also issued in cases where the Tax is [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":3276,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[345],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3236"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=3236"}],"version-history":[{"count":42,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3236\/revisions"}],"predecessor-version":[{"id":17886,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3236\/revisions\/17886"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/3276"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=3236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=3236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=3236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}