GST Basics
Tax Invoice vs Bill of Supply: Key Differences Under GST
Not every GST business issues a tax invoice. Here's when to use a bill of supply instead, and what fields each document requires.
29 Jan 20267 min read
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Free Bill of Supply Generator
The right document for composition-scheme dealers and for exempt or nil-rated supplies. No GST is charged and the buyer cannot claim ITC.
- CBIC Rule 46 compliant
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Overview
What is a Bill of Supply?
A bill of supply is issued under Section 31(3)(c) of the CGST Act and Rule 49 of the CGST Rules. It is the correct document — instead of a tax invoice — when no GST can be charged: either because the supplier is registered under the composition scheme, or because the supply is exempt or nil-rated.
A bill of supply must carry the words "BILL OF SUPPLY" and, for composition dealers, the declaration: "Composition taxable person, not eligible to collect tax on supplies." Because no GST is charged, the buyer cannot claim Input Tax Credit on the document.
It is reported in GSTR-1 Table 8 (Nil-rated, exempt, non-GST supplies) or in the composition return GSTR-4 / CMP-08 depending on the scheme. If a supply line includes both taxable and exempt items, you can issue a single "invoice-cum-bill of supply".
When to issue a Bill of Supply
- You are a composition-scheme dealer (turnover up to ₹1.5 Cr goods / ₹50L services).
- You are supplying exempt goods or services (e.g. fresh produce, healthcare services, educational services).
- You are supplying nil-rated or non-GST goods (e.g. alcohol for human consumption, petroleum products).
- The supply value is below ₹200 and the buyer doesn't need a document (consolidated bill at day-end is permitted).
Fields
Mandatory fields on a Bill of Supply
- "BILL OF SUPPLY" heading
- Mandatory document title.
- Bill number & date
- Unique sequential, max 16 chars. BOS- prefix recommended.
- Supplier & recipient details
- Name, address, GSTIN of supplier; recipient details if registered.
- HSN / SAC code
- Same length rules as tax invoice (4 / 6 / 8 digit based on turnover).
- Description, quantity, value
- No GST rate or GST amount columns.
- Composition declaration
- Auto-printed for composition dealers.
How it works
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- 1
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Add your business details, the buyer, and the line items. GST columns are hidden automatically.
- 2
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See the composition declaration and bill-of-supply format render in real time.
- 3
Download PDF
Download a clean, GST-compliant PDF. Report it in GSTR-1 Table 8 or CMP-08.
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FAQ
Frequently asked questions
Everything you need to know about bill of supply generation.
Can a regular GST-registered business issue a Bill of Supply?
Yes — for exempt or nil-rated supplies. Even if you are a normal registered taxpayer, you must issue a bill of supply (not a tax invoice) for any exempt items.
Can the buyer claim ITC on a Bill of Supply?
No. Because no GST is charged on the document, the buyer has nothing to claim as Input Tax Credit.
What is the difference between a Tax Invoice and a Bill of Supply?
A tax invoice is for taxable supplies and shows GST (which the buyer can claim as ITC). A bill of supply is for exempt supplies or composition dealers — no GST is shown and no ITC is available.
Is HSN code mandatory on a Bill of Supply?
Yes, the same HSN length rules apply (4-digit if turnover ≤ ₹5 Cr B2B, 6-digit otherwise).
Do I need a separate number series?
It is strongly recommended. Keep a BOS- series for bill of supply distinct from your INV- tax invoice series so reconciliation in GSTR-1 is clean.
What is an invoice-cum-bill-of-supply?
If a single supply has both taxable and exempt items, you can issue a combined document titled "Invoice-cum-Bill of Supply" instead of two separate documents. It must show GST only on the taxable lines.
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Guides
Read before you issue one
GST Basics
GST Composition Scheme: Rates, Eligibility & Filing for Small Businesses (2026)
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Compliance
GST Invoice Format: 16 Mandatory Fields Under Rule 46 (2026)
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