What is Bill of Supply?
Tax invoice is generally issued to charge the tax and pass on the credit. In GST there are some instances where the supplier is not allowed to charge any tax and hence a Tax invoice can’t be issued instead another document called Bill of Supply is issued.
Cases where a registered service provider needs to issue a bill of supply:
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- Rendering of exempted services
- Service provider is paying tax under composition scheme
I have provided detailed information on the processes and procedures related to GST invoices. In this piece, we will discuss bills of supply, and why they are needed. A bill of supply is different from a tax invoice as a bill of supply will not contain any tax amount (as tax cannot be charged in these cases).
Important Fields in a Bill of Supply
It should have the following details:
- Name, address and GSTIN of the supplier
- Bill of supply number (it must be generated consecutively and each bill of supply will have a unique number for that financial year)
- Date of issue
- If the recipient is registered then the name, address and GSTIN of the recipient
- HSN Code of goods or Accounting Code for services**
- Description of goods/services
- Value of the goods/services after adjusting any discount or abatement
- Signature of the supplier
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