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 GST invoice.

Who issues 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.

What is a bill?

A bill is an official document issued by a vendor to a buyer to showcase the products and or services that the buyer purchases.

The items sent by the vendor are supplied on credit, which is why they issue you a bill. You register this bill in your invoicing software and mark it as paid after you pay your vendor.