Bill of supply

A bill of supply is the bill a registered business issues instead of a tax invoice when it does not charge tax on the sale: because it pays tax under the composition scheme, or because the goods or services themselves are exempt.

Rule 49 lists what it must show: the seller's name, address and GSTIN; a consecutive serial number of up to sixteen characters, unique for the financial year; the date; the buyer's name, address and GSTIN if registered; the HSN code; a description; the value of the supply after any discount; and a signature, which an electronic bill does not need. There are no tax lines, because no tax is charged.

A business under the composition scheme must also print the words “composition taxable person, not eligible to collect tax on supplies” at the top of every bill of supply. And as with a tax invoice, sales under ₹200 can go on one consolidated bill at the close of the day.