A bill of supply for GST composition scheme dealers and businesses making exempt supplies - no tax charged to customers.
The Bill of Supply is a special document under GST that is issued instead of a tax invoice when the supplier cannot charge GST to the customer. This applies in two scenarios: when the supplier is registered under the Composition Scheme (Section 10 of CGST Act), and when the supply consists of exempted goods or services. Composition dealers with turnover up to Rs 1.5 crore (Rs 75 lakh for special category states) pay a flat percentage of tax on their turnover and cannot collect tax from customers. The bill of supply looks similar to a regular invoice but with important differences: there is no tax column (no CGST, SGST, or IGST amounts), and it must prominently display the declaration "Composition taxable person, not eligible to collect tax on supplies" at the top. This declaration is mandatory under Rule 46(5) of the CGST Rules and failure to include it can result in penalties. The template is designed to comply with all requirements of Rule 49 which specifically governs the format and content of a bill of supply. It includes all fields except tax breakup, making it clear to both the business and the customer that no GST is being charged on this transaction.
GST composition scheme dealers (manufacturers up to Rs 1.5 crore, restaurants up to Rs 1.5 crore, other suppliers up to Rs 50 lakh), businesses making 100% exempt supplies (medical services, education, agricultural produce), and any registered person making a supply that does not attract GST.
Step 1: Add your business name, address, and GSTIN. Step 2: Ensure the composition declaration is prominently displayed at the top. Step 3: For each item, enter description, HSN code, quantity, and rate. Step 4: Calculate the total WITHOUT adding any tax columns. Step 5: The total is simply the sum of all item amounts. Step 6: Print and provide to the customer.
Bill of Supply is governed by Section 31(3)(c) and Rule 49 of CGST Rules. Composition dealers MUST include the declaration "Composition taxable person, not eligible to collect tax on supplies" prominently on every bill. They cannot collect tax from customers or show tax breakup. Composition dealers pay: 1% for manufacturers, 5% for restaurants, 1% for other suppliers. Exempt supplies (Schedule III items, education, medical) also use bill of supply. The bill must have: serial number, date, supplier details, description, quantity, value.
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