Bill of Supply: A bill of supply referred to in provision (c) of sub-section (3) of section 31 will be released by the provider consisting of the following information. A company signed up under GST issues a tax invoice to the purchaser. Such an invoice points out the GST rate charged on the products and services offered.
- ( a) name, address and GSTIN of the provider;-LRB-
- ( b) a consecutive identification number, in one or numerous series, including alphabets or numerals or unique characters– hyphen or dash and slash symbolised as “-“ and “/” respectively, and any mix thereof, distinct for a financial year;-LRB-
- ( c) date of its concern;-LRB-
- ( d) name, address and GSTIN or UIN, if signed up, of the recipient;-LRB-
- ( e) HSN Code of goods or Accounting Code for services;-LRB-
- ( f) description of goods or services or both;-LRB-
- ( g) worth of supply of products or services or both considering discount rate or reduction, if any; and
- ( h) signature or digital signature of the supplier or his authorized representative:
Provided that the provisos to rule 46 shall, mutatis mutandis, use to the expense of supply issued under this rule.
However, some companies although signed up under GST can not charge any tax on the billing issued by them. Such dealerships need to issue a Bill of Supply.
A Bill of Supply is provided when GST is not applicable on a deal or when GST is not to be recovered from the customer.
1. Who should provide Bill of Supply?
The following registrants must release Bill of Supply:
A. Composition Dealer
A taxpayer whose turnover is less than Rs 75 lakh can select composition scheme. A dealership going with structure scheme needs to deposit tax on their invoices themselves, they are not enabled to collect any tax from their purchasers. The GST needs to be paid out of pocket by the structure dealer. They can not charge GST in the billing.
Thus a composition dealer has to raise a Bill of Supply rather of a Tax Invoice.
The composition dealer needs to point out the words ‘structure taxable person not eligible to collect taxes on supplies’ on the Bill of Supply.
An exporter is also not needed to charge GST on their invoice. This is because exports materials are zero-rated. A taxpayer exporting items can issue a Bill of Supply in location of a tax invoice.
The dealer needs to mention the following in their Bill of Supply-
” Supply Meant For Export On Payment Of IGST”
” Supply Meant For Export under Bond Or Letter of Undertaking Without Payment Of IGST”
C. Exempted Goods Supplier
When signed up dealership materials exempt goods or services they are needed to issue Bill of Supply.
For example, when a registered taxpayer supplies unprocessed agricultural products they have to release a Bill of Supply rather of a tax invoice.
2. Contents of Bill of Supply
A bill of supply will be provided by the supplier including the following information:
These are the information a Bill of Supply should have:
1. Call, address, and GSTIN of the supplier
2. Bill of Supply number (it should be generated consecutively and each Bill of Supply will have a distinct number for that fiscal year)
3. Date of problem
4. Call, address and GSTIN or UIN, if registered, of the recipient
5. HSN Code of items or Accounting Code for services. The variety of digits that are required to be pointed out based on turnover is as follows:
|Turnover||No. of HSN digits|
|Turnover less than 1.5 crores||HSN code is not required|
|Turnover in between 1.5 -5 crores||2-digit HSN code|
|Turnover above 5 crores||must use 4-digit HSN code|
6. Description of items or services or both
7. Worth of supply of items or services or both taking into account discount or abatement, if any
8. Signature or digital signature of the supplier or his authorized agent
Manner of releasing billing [Rule 48 of the CGST Act, 2017]:
( 1) The invoice will be prepared in three, when it comes to supply of products, in the following manner, particularly– by marking on face of the invoice
- ( a) ORIGINAL FOR RECIPIENT;-LRB-
- ( b) DUPLICATE FOR TRANSPORTER; and
- ( c) TRIPLICATE FOR SUPPLIER.
( 2) The billing shall be prepared in duplicate, in the case of the supply of services, in the following manner, namely-
- ( a) ORIGINAL FOR RECIPIENT; and
- ( b) DUPLICATE FOR SUPPLIER.
( 3) The identification number of invoices released during a tax period will be provided digitally through the typical portal in FORM GSTR 1.