Difference between bill of supply and Bills
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.