Bill of Supply under GST: Meaning & Format
Definition
A bill of supply is the GST document issued instead of a tax invoice when no tax can be charged — by a composition taxpayer, or by a registered person supplying exempt goods or services. It shows no GST amount.
| Term | Bill of supply |
|---|---|
| In Hindi | आपूर्ति का बिल (बिल ऑफ सप्लाई) |
| Area | GST & tax |
| Search phrase | bill of supply |
| Try it | Invoice format |
आपूर्ति का बिल (बिल ऑफ सप्लाई) — हिंदी में अर्थ
बिल ऑफ सप्लाई वह GST दस्तावेज़ है जो टैक्स इनवॉइस की जगह तब जारी होता है जब टैक्स नहीं वसूला जा सकता — कंपोज़िशन करदाता द्वारा, या छूट वाली वस्तु या सेवा देने वाले पंजीकृत व्यक्ति द्वारा। इसमें GST राशि नहीं दिखती।
What it must contain (Rule 49)
Supplier's name, address and GSTIN; a consecutive serial number of up to 16 characters, unique for the financial year; date of issue; name, address and GSTIN of the recipient if registered; HSN code; description of goods or services; value after discount; and signature of the supplier or authorised representative. A composition taxpayer must also print 'composition taxable person, not eligible to collect tax on supplies'.
Tax invoice vs bill of supply
A tax invoice charges GST and lets a registered buyer claim input tax credit; a bill of supply carries no tax and gives no ITC. If a regular taxpayer sells both taxable and exempt items to an unregistered buyer in one transaction, a single 'invoice-cum-bill of supply' can be issued.
Bills of supply are reported in GSTR-1 as nil-rated or exempt supplies; composition taxpayers report turnover in CMP-08 instead.
Example
A registered trader sells fresh vegetables (exempt) worth ₹45,000 to a hotel. No GST applies, so the trader issues Bill of Supply BOS/26-27/0112 for ₹45,000 — not a tax invoice.
Related tools and guides
Frequently asked questions
Who issues a bill of supply?
Composition taxpayers, and regular taxpayers supplying exempt goods or services.
Can GST be charged on a bill of supply?
No. If tax is charged, a tax invoice must be issued instead.
Can the buyer claim ITC on a bill of supply?
No, because no tax is charged on it.
Is a bill of supply the same as a delivery challan?
No. A bill of supply records a sale with no tax; a delivery challan moves goods without a sale.
Related terms
- Blocked credit under GST (Section 17(5))Blocked credit is GST paid on purchases that cannot be claimed as input tax credit even when used in business, because section 17(5) of the CGST Act specifically disallows it — such as food, most passenger cars and construction of buildings.
- Composition scheme (GST)The composition scheme is an optional, simpler GST scheme for small taxpayers: they pay tax at a low fixed percentage of turnover, file quarterly, but cannot charge GST on their invoices or claim input tax credit.
- GST registration limitA business must register under GST once its aggregate turnover in a financial year crosses ₹40 lakh if it supplies only goods, or ₹20 lakh if it supplies services — with lower limits in some special-category states — or earlier if it falls in a compulsory registration category.
- GSTR-1 vs GSTR-3BGSTR-1 is the return of outward supplies — invoice-wise details of sales. GSTR-3B is the summary return in which tax is actually paid and input tax credit claimed. Both are filed by regular GST taxpayers.
- ITC reversal under GSTITC reversal means paying back input tax credit already claimed, or not claiming it, when the conditions for credit are not met — for example the supplier is not paid within 180 days, or inputs are used for exempt supplies.
- Nil-rated, exempt, zero-rated and non-GST supplyNil-rated supplies carry a 0% GST rate; exempt supplies are wholly exempted from GST; zero-rated supplies are exports and supplies to SEZs, where ITC is still allowed; non-GST supplies are items outside GST altogether, such as petrol and alcohol for human consumption.