Tax Invoice is issued in case a registered person is supplying taxable goods or services or both and also charge GST from customer.Same way, Bill of supply is issued instead of Tax Invoice in case a registered person supplying exempted goods or service or both or a registered person is paying tax under composition scheme.
Bill of supply issued by such persons does not contain the details pertaining to rate of tax and the amount of tax. Also, the value mentioned in the Bill of Supply is also not taxable value.
|Tax Invoice||Bill of supply|
|It is issued in case of taxable supply.||It is issued in case of exempt supply.|
|Input Tax Credit can be issued on the basis of Tax Invoice.||Input Tax credit cannot be claimed on the basis of Bill of Supply.|
|Amount of tax & rate of tax is mentioned on Tax Invoice.||Amount of tax & rate of tax not mentioned on Bill of supply.|
|Composition dealer cannot issue a Tax invoice.||Composition dealer issue Bill of supply.|
|In case the recipient is unregistered and value of supply is more than Rs. 50,000, in that case following information is mandatory on invoice :
||No such information is required in case of Bill of supply|
Now we will understand the content of Bill of supply.
|1.||Name, address & GSTIN of supplier|
|2.||Unique Serial No. for a financial year (not exceeding 16 characters)|
|3.||Date of issue|
|4.||Name, address & GSTIN of the recipient|
|5.||HSN code in case of goods or SAC code in case of services|
|6.||Description of goods or services|
|7.||Value of supply ( after discount, if any)|
|8.||Signature or electronic signature|
|Less than Rs. 1.5 crore||HSN code not required|
|Between Rs.1.5 crore - Rs. 5 crore||2-digit HSN|
|Above Rs. 5 crore||4-digit HSN|
Given below taxpayers are required to issue Bill of supply :
Any registered person who is supplying any goods or service which are in ambit of GST but not chargeable to tax as they are exempt.
In such case, registered person issue Bill of supply as an evidence of sale instead of Tax Invoice.
A taxpayer who is eligible for composition scheme & opting for composition scheme cannot charge GST in invoice and they are not eligible to recover the amount of tax from the customer.
In such case, taxpayer is required to issue Bill of supply instead of Tax Invoice.
In case of export of goods or services or both, bill of supply may be issued in place of Tax invoice since export supplies are zero rated supplies.Given below details are to be mentioned on bill of supply in case of export :
Yes, If the value of consignment exceeds Rs. 50,000/-
No, Bill of supply is not an evidence to claim ITC
There is no relation since we cannot claim ITC on basis of Bill of supply
Yes, HSN is mandatory in case of bill of supply subject to some exceptions