Tax Invoice vs Bill of Supply Under GST: What to Issue

Not every GST supplier issues a tax invoice. Which document you issue depends on your registration type and what you supply.

Tax invoice

Regular registered taxpayers issue a tax invoice for taxable supplies. It shows GSTIN, HSN/SAC, the GST rate and the CGST/SGST/IGST amounts, and it is what your customer uses to claim input tax credit. See the GST invoice format.

Bill of supply

A bill of supply is issued instead of a tax invoice when no GST can be charged — mainly by composition scheme dealers, and by anyone supplying exempt goods or services. It shows the supplier and recipient details and the value, but no tax. If an invoice covers both taxable and exempt items, an invoice-cum-bill of supply is used.

Other documents

• Proforma invoice / quotation — not tax documents; see invoice vs quotation vs proforma
• Credit note — issued to reduce tax on an earlier invoice, referring to that invoice’s number and date
• Debit note — issued to increase the value or tax of an earlier invoice

Frequently asked questions

Can a composition dealer charge GST?

No. Composition dealers issue a bill of supply and cannot collect tax from customers.

Can my customer claim input credit on a bill of supply?

No. There is no GST on it, so there is nothing to claim.