A taxable person whose aggregate turnover during the financial year is less than Rs.100 lakhs can opt for GST composition scheme and can pay tax on the basis of the turnover at the predetermined fixed rate.
Taxable person opted for GST composition scheme is required to issue a bill of supply for the supplies made by him instead of a tax invoice. The rationale behind issuing a bill of supply is that a person (being a supplier of exempted goods or composition taxable person) not eligible to collect tax from its customer is debarred from issuing a taxable invoice. Furthermore, a taxable person who is required to issue a bill of supply is not entitled to any credit of input tax as he cannot collect any tax from the recipient on supplies made by him.
For an example, MR. X supplied certain goods for Rs. 20,000 to his customer. Mr. X will be required to raise a bill of supply for Rs. 20,000 without charging any tax. Mr. X is required to calculate tax on the bill and pay such tax to the government from his own pocket.
Bill of Supply is required to be Issued in the following cases:
a) A Bill of Supply is required to be issued where a registered person is supplying goods which are exempted.
b) Where registered person avail the benefit of GST composition scheme
In both cases, the registered person cannot charge tax from the customer i.e. cannot issue a tax invoice, so he has to raise a Bill of Supply.
Primarily, there are 3 different types of Invoices under GST law such as:
The manner in which invoices are issued under GST is as follows:-
TAX INVOICE (for Supply of Goods) is to be issued in triplicate as :
TAX INVOICE (for Supply of Services) is to be issued in 2 copies as :
BILL OF SUPPLY (for both goods and services) can be issued as:
The contents of a Bill of supply are as follows:
(a) name, address and GSTIN of the supplier of the goods;
(b) date of issue;
(c) name, address and GSTIN or UIN (if registered) of the recipient of the goods;
(d) HSN Code of the goods supplied;
(e) Details of the description of the goods supplied;
(f) The value of goods supplied by taking into account any discount or abatement allowed
(g) a sixteen character consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters
(h) signature of the supplier of the goods or his authorised representative.