Are you confused on who, when is it required to issue BILL OF SUPPLY in GST. Also the difference b/w Tax invoice & Bill of Supply

Things you want to know about Bill of Supply in GST?

Who is required to issue Bill of Supply?

> A registered taxable person supplying

  • Zero Rated goods & services i.e. non taxable
  • Paying tax under the composition levy,

> A unregistered person who are not required to pay GST,

shall issue a Bill of Supply containing the prescribed particulars.

A bill of supply issued by the supplier shall contain the following information and details:

  1. Name, address and GSTIN of the supplier;
  2. A consecutive serial number containing only alphabets and/or numerals, unique for a financial year;
  3. Date of its issue;
  4. Name, address and GSTIN/ Unique ID Number, if registered, of the recipient;
  5. HSN Code of goods or Accounting Code for services;
  6. Description of goods or services;
  7. Value of goods or services taking into account discount or abatement, if any; and
  8. Signature of the supplier or his authorized representative

When Bill of Supply is not required

A registered taxable person may not be required to issue BOS, if the value of the goods or services supplied is less than Rs.200 only.

Consolidated Bill of Supply shall be prepared by the registered taxable person-

  1. At the end of each day,
  2. In respect of all supplies for value of less than rupees one hundred (Rs. 200),
  3. Consolidated BOS will only cover supplies where bill of supply has not been issued.

Difference between Tax Invoice and Bill of Supply in GST:

TAX INVOICE BILL OF SUPPLY
It is used for all types of Taxable Sales including exports It is used for all types of exempted sale or sales by composition dealer.

Taxes to be shown separately.

No taxes to be shown separately.

In case of Unregistered Buyer,

  • Name,
  • Address &
  • Place of Delivery

is compulsory required, if Invoice Value before taxes is > 50000

No such provision.
Input Tax Credit (ITC) can be claimed based on Tax Invoice Input Tax Credit (ITC) cannot be claimed based on BOS

Conclusion:

Therefore Bill of Supply shall also be issued by non-registered person. The only scenario where not required to be issued, is when the amount of sale is < 200 per transaction.

Hence we recommend that non registered dealers shall obtain registration too in GST & if they cannot obtain the same due to compliance cost burden then always use Bill of Supply for sale of items in the prescribed format.

Reference:

https://www.aces.gov.in/Documents/draft-invoice-rules.pdf (POINT NO. 3)

www.gst-insights.com

Written By:

Pallavi Gupta, CA Trainee

 

 

 

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