taxInvoice.appBill of supply vs tax invoice
Short answer: A tax invoice is issued by a regular GST-registered supplier and shows the GST charged. A bill of supply is issued when no GST can be charged: by composition dealers, or for exempt or non-taxable supplies. A composition dealer's bill of supply must say 'composition taxable person, not eligible to collect tax on supplies'.
| Tax invoice | Bill of supply | |
|---|---|---|
| Who issues it | Regular GST-registered supplier | Composition dealer, or a supplier of exempt goods or services |
| GST shown | Yes: CGST + SGST or IGST | No GST |
| Buyer can claim input tax credit | Yes | No |
| Required wording | “Tax Invoice” | “Bill of Supply”; composition dealers add the composition declaration |
| HSN/SAC, serial number, date | Yes | Yes |
Retail shops
Most shops use a short GST bill format printed on an 80mm thermal roll. If you are a composition dealer, switch it to a bill of supply and it drops the tax lines and prints the declaration.
Free tools for this
Frequently asked questions
Can a composition dealer charge GST on the bill?
No. Composition dealers pay tax at a fixed rate on turnover and cannot collect GST from customers, so they issue a bill of supply.
Does a bill of supply need an invoice number?
Yes. It needs a consecutive serial number, the date, supplier details and GSTIN, and a description and value of the goods or services.