Question 1

What is a Bill of Supply and when is it needed?

Accepted Answer

A Bill of Supply is issued instead of a tax invoice when the supplier is a composition dealer or when supplies are exempt from GST. No tax is charged on a Bill of Supply. It is commonly used by small businesses under the composition scheme.

Question 2

Who should issue a Bill of Supply?

Accepted Answer

A Bill of Supply should be issued by GST composition scheme dealers (turnover up to ₹1.5 crore) and businesses dealing in exempt supplies like fresh vegetables, milk, eggs, bread, and educational services.

Question 3

What is the difference between a Bill of Supply and a Tax Invoice?

Accepted Answer

A Tax Invoice includes GST charged separately and is issued for taxable supplies. A Bill of Supply does not charge GST and is issued for exempt supplies or by composition dealers. The Bill of Supply shows the total amount without tax breakups.

Question 4

Can composition dealers charge GST on their bills?

Accepted Answer

No, composition dealers cannot charge GST on their supplies. They must issue a Bill of Supply instead of a tax invoice and cannot collect GST from their customers. They pay GST at a fixed rate on their turnover.

Question 5

How to download a Bill of Supply as PDF?

Accepted Answer

Fill in your business details and item descriptions in our Bill of Supply Generator, preview the document, and download it as a professional PDF instantly. No sign-up required for download.

Free Bill of Supply Generator — For GST Composition & Exempt Supplies

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