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GST Composition Scheme Bill / Invoice Format and What It Should Contain

Sec 10 of CGST Act 2017 explains the composition levy under Goods and Services Tax. The person who has opted for Composition levy under GST Act is called the Composition Dealer. A dealer who has opted for Composition scheme under GST Act has to take care of a certain provisions which are required to be complied with in case the assesse wants to enjoy the benefits of the scheme.

The person who has opted for Composition levy under Section 10 of CGST Act 2017 is called the Composition Dealer. A dealer who has opted for Composition scheme under GST Act has to take care of a certain provisions which are required to be complied with in case the assesse wants to enjoy the benefits of the scheme.

The most important documentation involved in the Composition levy is called the Bill Of Supply to be issued by the Composition Dealer in lieu of the tax invoice which is issued by the tax payers other than the composition dealers.

As the tax invoice is not to be issued by the Composition Dealer, hence there is no question of claiming the Input Tax Credit.

Rule 5 of the chapter II of the CGST Rules 2017 explains the requirements including the conditions and restrictions for the composition levy. One of the condition explains the requirements of the Bill of Supply to be issued by the Composition Dealers explained as follows-

Rule 5- Conditions and restrictions for Composition Levy

As per the requirements of Rule 5 the composition dealer cannot issue tax invoice , rather the composition dealer has to issue a Bill of Supply. There are certain mandatory requirements which are to be taken care of regarding the documentation to be opted by the composition dealer explained as follows-

Display related conditions(Mandatory in nature)-

a. Bills of Supply of the dealer opting for Composition levy

“Composition taxable person not eligible to collect tax on supplies”

b. Notices and Signboards at prominent places including his principal place of business and every additional place of business

“Composition Taxable Person”

Bill of supply to be issued by Composition Dealer

Following are the essential requirements regarding Bill of Supply issued by Composition Dealers-

1. A composition Dealer cannot charge CGST and SGST on Bill

2. A Composition Dealer cannot issue Tax invoice, instead a Bill of Supply has to be issued by him

3. Tax is not to be shown separately in the Bill

4. “Composition taxable person not eligible to collect tax on supplies” is to be specifically mentioned on the Bills of Supply

5. Following particulars are to be specifically mentioned in the Bill of Supply made by the Composition Dealer

– Name and address of the Composition Dealer

– GSTIN of the Composition Dealer

– A consecutive serial number containing only alphabets and / or numerals unique for a financial year

– Date of the issue of Bill of Supply

– Name and address of the recipient

– GSTIN of the recipient if the recipient is a registered party

– HSN code of the goods

– SAC code of the services

– Description of the goods

– Description of the services

– Value of the goods/ services

– Discount/ abatement taken

– Signature/ Digital signature of the supplier or his authorized representative

Exemptions

There are certain exemptions under CGST ACT and corresponding rules wherein under a few situations the Bill of Supply need not to be issued as per above terms by the Composition Dealer, explained as follows-

1. Where the value of the goods/ services is less than Rs. 100

2. A consolidated bill can be issued for a whole single day

It is to be noted that in case the buyer specifically asks for the Bill of Supply, then the Composition Dealer has to issue the same even if the value of goods/ services is less than Rs. 100.

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