Bill of Supply
Definition
A document issued instead of a tax invoice when a supplier cannot charge GST — for example a composition dealer, or a supplier of exempt goods. It looks like an invoice but does not show a separate GST charge because no tax is collected.
Common questions
What is the difference between a tax invoice and a bill of supply?
A tax invoice shows GST charged and lets the buyer claim input credit. A bill of supply carries no GST, so there is no credit to claim; it is used for exempt supplies and by composition dealers.
Related Terms in India GST
Payment Voucher (GST)
A document a recipient issues when paying a supplier under the reverse-charge mechanism, recording the payment on which the recipient is itself liable to pay GST. It supports the recipient's reverse-charge tax entry.
Receipt Voucher (GST)
A document issued when a supplier receives an advance payment for a supply that has not yet been made. It records the advance and the GST treatment that applies at the time of receipt.
GST Refund
A claim to recover GST where credit or cash has accumulated that cannot be used — commonly on exports, supplies to SEZs, or an inverted duty structure. Refund claims are filed online and are subject to verification and time limits.
Inverted Duty Structure
A situation where the GST rate on a business's inputs is higher than the rate on its finished output, causing input tax credit to pile up. The rules allow a refund of the accumulated credit arising from such an inverted structure, subject to conditions.
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