Bill of Supply: Definition, Meaning & Guide for Indian Businesses

A Bill of Supply is the document issued by composition dealers and for exempt supplies. Unlike a tax invoice, it does not show GST because no tax is charged.

What is Bill of Supply?

A Bill of Supply is a sales document used instead of a tax invoice in two cases: (1) Composition dealers (cannot collect GST from customers); (2) Sale of exempt goods or services. It contains most of the same fields as a tax invoice but does NOT show GST amount. Mark the document clearly as Bill of Supply. Cannot be used by regular GST taxpayers for taxable supplies.