GST · 25 June 2026
What Is a Bill of Supply? The GST Document Without Tax
A bill of supply is the sale document a seller issues when no GST is charged on the supply, either because the goods or services are exempt, or because the seller is registered under the composition scheme or is below the GST registration threshold. It is defined by Section 31(3)(c) of the CGST Act and Rule 49 of the CGST Rules. Because it carries no tax, a bill of supply gives the buyer no input tax credit, which is the line that separates it from a pakka bill (tax invoice).
By Mrs. Swapna Patel
Last reviewed
25 June 2026
In this section
Answers
- What Is a Bill of Supply? The GST Document Without Tax
- What Is a Pakka Bill? The GST Invoice That Counts as Valid
- What Is a Kaccha Bill? Why the Rough Slip Has No GST Standing
- Why Move From a Kaccha Bill to a Pakka Bill?
- How to Upgrade From a Kaccha Bill to a Pakka Bill (GST Invoice)
- 5 GST Invoice Mistakes That Trigger a Tax Notice (And How to Fix Them)
- 7 Fields Every Skilled Professional Must Put on a GST Invoice: Rule 46 Checklist
- What Makes a GST Invoice Legally Binding — And Why Clients Pay Faster When It Is
- What Is an IRN (Invoice Reference Number) Under GST?
- What Is Input Tax Credit (ITC) Under GST?
A bill of supply is just a tax invoice without the GST line, used to skip tax.
A bill of supply is a distinct document under Section 31(3)(c) of the CGST Act and Rule 49, issued only when the seller cannot charge GST at all, not when they choose to leave it off.
What is a bill of supply?
Short answer
A bill of supply is a GST sale document that carries no tax. Under Section 31(3)(c) of the CGST Act, a registered seller issues it instead of a tax invoice whenever GST is not chargeable on the supply.
A tax invoice (a pakka bill) shows the GST charged. A bill of supply is the opposite case: a document for a sale where there is no GST to show. It records the seller, the buyer, and the value, but it has no CGST, SGST, or IGST line, because none is being collected.
Who issues a bill of supply?
Short answer
Three sellers issue one: a composition-scheme dealer under Section 10, a seller of exempt goods or services, and a seller below the GST registration threshold.
- A composition-scheme dealer. They pay GST at a flat rate out of their own pocket and cannot collect it from buyers, so they issue a bill of supply, not a tax invoice.
- A seller of GST-exempt goods or services. There is no tax on the supply, so a tax invoice would have nothing to show.
- A seller below the registration threshold who is not registered. With no GSTIN, they cannot raise a tax invoice.
What must a bill of supply contain?
Short answer
Rule 49 of the CGST Rules lists the mandatory fields. It looks like an invoice but deliberately has no tax breakup.
- The seller's name, address, and GSTIN (or PAN if the seller is unregistered).
- A consecutive serial number, up to 16 characters, unique for the financial year.
- The date of issue, and the buyer's name and address.
- A description of the goods or services and the total value, with no GST amount.
How is a bill of supply different from a tax invoice?
Short answer
The difference is input tax credit. Section 16 of the CGST Act lets a buyer claim credit only against a tax invoice, never against a bill of supply.
- A tax invoice carries GST the buyer can reclaim as input tax credit. A bill of supply carries no tax, so there is nothing to reclaim.
- Issuing a bill of supply on a sale that was actually taxable understates GST and reads as suppression in an audit.
- For the variant choice (composition vs unregistered), see which bill of supply you issue.
References & related
Primary sources
- Section 31(3)(c), Central Goods and Services Tax Act 2017 — CBICStatutory basis for issuing a bill of supply in place of a tax invoice.
- Rule 49, Central Goods and Services Tax Rules 2017 — CBICMandatory particulars of a bill of supply.
- Section 16, Central Goods and Services Tax Act 2017 — CBICInput tax credit allowed only against a valid tax invoice, not a bill of supply.
Last reviewed: 25 June 2026