Bill of Supply Generator (Composition & Exempt Supplies)
Not every GST-registered business can issue a tax invoice. If you have opted for the composition scheme under Section 10, or if you supply exempted or nil-rated goods/services, you must issue a Bill of Supply instead (Rule 49 of the CGST Rules). The key difference: a bill of supply shows no tax column, and the buyer cannot claim any input tax credit on it.
Mandatory contents
- Supplier name, address and GSTIN; serial number and date.
- Recipient name, address and GSTIN if registered.
- HSN/SAC code, description, value of goods or services after discount.
- For composition dealers, the words "composition taxable person, not eligible to collect tax on supplies" must be printed on the bill. This generator adds that declaration automatically.
- Signature of the supplier.
Composition scheme at a glance
Traders and manufacturers with aggregate turnover up to ₹1.5 crore (₹75 lakh in special-category states) and service providers up to ₹50 lakh can opt in. They pay tax at a flat rate on turnover — 1% for traders/manufacturers, 5% for restaurants, 6% for other services — from their own pocket, file quarterly CMP-08 and an annual GSTR-4, and cannot make inter-state outward supplies.
Worked example
A composition kirana store sells groceries worth ₹8,400 to a customer. The bill of supply shows ₹8,400 as the total with no CGST/SGST lines. At quarter end, the dealer pays 1% of total turnover (say ₹12,00,000 × 1% = ₹12,000) through CMP-08. The customer pays exactly the bill value and receives no ITC.
When to use the "Exempt supply" option
A regular (non-composition) dealer supplying only exempt items — fresh vegetables, unbranded food grains, educational services, healthcare services — should choose the exempt option. The composition declaration is then replaced with a note that the supply is exempt/nil-rated. If an invoice contains both taxable and exempt items, you may issue a single "invoice-cum-bill of supply".
Frequently Asked Questions
Can a composition dealer issue a tax invoice?
No. A composition dealer must issue a bill of supply and cannot collect GST from customers.
Is a bill of supply required for small amounts?
A bill of supply need not be issued if the value is below ₹200 and the recipient is unregistered and does not ask for one, but a consolidated bill must be prepared at day end.
Will the buyer get input tax credit?
No. Since no tax is charged on a bill of supply, there is no credit to claim.
Can I show my GSTIN on a bill of supply?
Yes, GSTIN of the supplier is mandatory. Only the tax columns are omitted.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.