GST Bill of Supply

In a previous article we discussed the GST Invoice format and the information required in a GST invoice. Having went through the process of GST invoicing, in this article we'll explain one other transaction document called bill of supply. We'll be looking at how to make one, when to issue it and its particularities.

What is a bill of supply?

A bill of supply is a transaction document that doesn't show any tax amount on it, for which input tax cannot be charged. This is the main difference between this and the tax (GST) invoice.

When do I issue a bill of supply?

You need to issue a bill of supply in any of these cases:

• If you are a registered supplier of exempted goods or services
• You have opted to pay GST under the composition scheme

Cases when a Bill of Supply will not be issued

• If the value of the supply is less than Rs. 200 (unless the receiver wants the bill of supply)
• The recipient is not a registered person AND the recipient does not require a bill of supply

However, a consolidated bill of supply for such supplies should be issued at the end of the business day.

When do I issue a bill of supply?

Based on the government regulations, it should contain the following:

• Name, address and GSTIN of supplier.
• Bill of supply serial number (generated consecutively, unique for the financial year).
• Date of issue.
• If recipient is registered: name, address and GSTIN.
• HSN (for products) or SAC code (for services) *
• Description of goods/services.
• Value of goods/services after discount or abatement.
• Signature of supplier.

*What HSN Code should you write:

• Turnover less than 1.5 crores: HSN code not required
• Turnover 1.5 -5 crores: 2-digit HSN code
• Turnover above 5 crores: 4-digit HSN code

This is how a typical bill of supply should look like:

What should a bill of supply for exports contain?

A bill of supply for exports should also include a declaration regarding payment of GST Depending on the payment of IGST the following text should appear:

If IGST has been paid for the exports:
"Supply Meant For Export On Payment Of IGST".

If IGST has not been paid yet for the exports:
"Supply Meant For Export Under Bond Or Letter Of Undertaking Without Payment Of IGST"

What details should a bill of supply for exports contain?

• Name and address of the buyer
• Delivery address
• Destination country
• Number and date of application for removal of goods for export.