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In India, the document you issue under GST generally depends on the supply’s tax treatment and, in some cases, the supplier’s tax scheme: a registered supplier usually issues a tax invoice for a taxable supply, and a bill of supply for an exempt supply or a supply made by a composition taxpayer. They are not interchangeable formats. A tax invoice records GST charged; a bill of supply identifies the transaction without showing a GST rate or tax amount. The CGST Act and Rules set the particulars and timing, with exceptions for certain transactions and supplier classes.
What is the difference between a tax invoice and a bill of supply?
A tax invoice documents a taxable supply and shows the applicable GST particulars. A bill of supply is used where GST is not charged on that document, generally for exempt supplies or supplies by a person paying tax under the composition scheme. The choice follows the legal treatment of the supply and supplier—not the buyer’s preference.
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Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →| Decision point | Tax invoice | Bill of supply |
|---|---|---|
| Typical use | Taxable supply by a registered supplier | Exempt supply or supply by a composition taxpayer, subject to applicable rules |
| GST on the document | Shows the applicable tax rate and amount | Does not show a tax rate or tax amount |
| Core transaction details | Supplier and invoice details, recipient particulars as applicable, supply description and value, and tax particulars | Supplier and bill details, recipient particulars as applicable, HSN or Accounting Code, description and value after discount or abatement |
| What to check | That the taxable treatment and tax particulars are correct, including any special fields for the transaction | That the exempt or composition treatment applies and the prescribed bill particulars are present |
| Recipient’s credit review | Potential documentary basis for input tax credit, subject to all statutory conditions | Not the ordinary tax-charging document used to substantiate credit for a taxable purchase |
This is the general distinction under the Central Goods and Services Tax (CGST) framework. The CGST Act, CGST Rules, notifications and applicable state or Union Territory GST provisions control particular cases.
Why the classification matters
The document is evidence of how the supplier treated the transaction. Showing GST on a document that should be a bill of supply can misstate the liability, while using a bill of supply for a taxable supply can leave the tax charge and the recipient’s documentation unsupported. A customer’s preferred format, accounting software setting or printed stationery does not determine the legal document.
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First identify whether the supply is taxable or exempt. Then consider whether the supplier is under the composition scheme. A regular registered supplier may make both taxable and exempt supplies, so the same business can legitimately issue tax invoices for some transactions and bills of supply for others. A composition taxpayer generally uses a bill of supply rather than a regular tax invoice for its supplies. Exports require separate attention: zero-rated export treatment is not the same thing as an exempt domestic supply, and export invoices have their own endorsement and destination-related particulars.
How do I decide which document to issue?
Start by determining whether the supply is taxable or exempt and whether the supplier is paying tax under the composition scheme. Then check for a specific exception or additional requirement that applies to the transaction.
- Identify the supply’s GST treatment. A taxable supply by a registered supplier generally calls for a tax invoice. An exempt supply generally calls for a bill of supply.
- Check the supplier’s scheme. A supplier paying tax under the composition scheme generally issues a bill of supply for its supplies.
- Check transaction-specific rules. Exports, reverse-charge supplies, continuous supplies, goods supplied on approval and other notified categories can have special requirements.
- Confirm current applicability. Check the current CGST Act and Rules and relevant notifications for the transaction, supplier class and any e-invoice obligation. A general rule may not resolve every taxpayer-specific exception.
A bill of supply is not simply a tax invoice with the tax fields removed. It is the prescribed document for circumstances in which tax is not charged on that document. Conversely, a buyer cannot choose a bill of supply instead of a tax invoice for a taxable purchase merely because that format is more convenient.
Simple decision examples
- A registered supplier sells goods in a taxable transaction: use a tax invoice, with the applicable rate and tax amount.
- The same supplier makes a supply that is legally exempt: use a bill of supply and identify the supply and value without charging GST on that document.
- A supplier paying tax under the composition scheme makes a supply: use a bill of supply under the composition rules, rather than presenting it as a regular tax invoice with separately charged GST.
- A transaction is an export: do not automatically apply the domestic exempt-supply approach; check the export endorsement and destination particulars required for the invoice.
What details must a tax invoice include?
Rule 46 of the CGST Rules sets out the principal tax-invoice particulars. The exact fields depend on the transaction, and the following is a working checklist—not a substitute for checking the current rule text and notifications.
Supplier and invoice identification
- Supplier’s name, address and GSTIN.
- A consecutive serial number unique for the financial year.
- The invoice’s date of issue.
The financial-year uniqueness requirement means numbering should be controlled across the invoicing system, branches or series used by the registered supplier. A template that repeats a number or silently resets numbering without satisfying the rule creates a compliance risk even if the arithmetic on the invoice is correct.
Recipient and supply information
- For a registered recipient, the recipient’s name, address and GSTIN or UIN, as applicable.
- For specified transactions with an unregistered recipient at or above the applicable threshold, the prescribed recipient and delivery particulars.
- A description of the goods or services. For goods, include quantity and the relevant unit or Unique Quantity Code where required.
- The HSN for goods or Accounting Code for services, as applicable.
- The value and taxable value after applicable discounts or abatements.
Descriptions should allow the transaction to be matched to the order, delivery record and accounting entry. For goods, quantity and unit information should agree with those records. Discounts or abatements should be reflected in the taxable-value calculation where applicable, rather than left as an unexplained difference between the line value and the tax base.
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- The applicable tax rate and tax amount.
- Place of supply in inter-State cases, and delivery address where relevant.
- An indication where the supply is subject to reverse charge.
- Supplier signature or digital signature, subject to rule-based exceptions.
Tax should be shown in a way that makes the applicable levy and amount clear for the transaction. Inter-State supplies need the place-of-supply information required by the rules; a delivery address may also matter where the rules call for it. Reverse-charge indication is a transaction field, not an optional marketing label.
Export invoices require the relevant export endorsement and destination-related details. Some notified classes of taxpayers, including those covered by e-invoicing requirements, also have additional process obligations. Do not assume that a list of core fields covers every invoice or every taxpayer.
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What details must a bill of supply include?
Rule 49 of the CGST Rules requires identifying and transaction details, but a bill of supply does not show a GST rate or tax amount. CBIC’s sectoral FAQ describes the document as identifying the supply without those tax fields.
- Supplier’s name, address and GSTIN.
- A consecutive serial number unique for the financial year.
- Date of issue.
- Recipient particulars, where applicable under the rules.
- HSN or Accounting Code, as applicable, and a description of the supply.
- Value after discount or abatement.
- Supplier signature or digital signature, subject to rule-based exceptions.
A bill of supply still needs enough information to identify the parties, the supply and its value. Omitting the tax amount does not mean omitting the supplier’s GSTIN, serial control, date or applicable classification details. The value should be stated after applicable discount or abatement.
Some bill-of-supply rules draw on relevant provisos to Rule 46. As a result, the details needed for a specific transaction may depend on more than the basic list above. Check the current rule and applicable notifications before relying on a generic template.
When must I issue a GST invoice?
The deadline differs for goods and services. Section 31 of the CGST Act sets the general framework; the CGST Rules prescribe service-invoice periods and special cases.
Taxable goods
If the supply involves movement of goods, the invoice is generally due before or at the time of removal. If it does not involve movement, it is generally due before or at delivery or making the goods available to the recipient. Coordinate the invoice date with dispatch, delivery and availability records so the timing can be demonstrated.
Taxable services
For services, the prescribed period generally runs from the date of supply. CBIC’s rules guidance states a general period of 30 days and a period of 45 days for specified insurance, banking and financial suppliers. Special arrangements or extensions may apply, so a supplier in one of those categories should verify the rule applicable to its service rather than assume the general period controls.
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Transactions with special timing rules
Continuous supplies, reverse-charge transactions, exports, goods supplied on approval and notified categories can require different timing or documentation. The general goods and services deadlines are a starting point, not a universal deadline for every GST transaction.
For an approval arrangement, for example, track when goods are removed, accepted or otherwise become subject to the relevant invoicing event. For a reverse-charge transaction, verify which party has the documentation and timing responsibility under the applicable rule. For an export, align the invoice with the export documentation and required endorsement rather than treating it as an ordinary domestic sale.
When can a supplier omit an individual invoice for a small supply?
Section 31 provides a limited exception for a supply below ₹200, subject to prescribed conditions. It is not a general permission to skip invoices for every low-value sale.
CBIC’s explanation describes the covered case as a supply to an unregistered recipient who does not ask for an invoice. The supplier must issue a consolidated tax invoice at the end of the day for the supplies covered by the exception. If the recipient requests an invoice, or if another condition is not met, the individual-document exception should not be assumed. Check the current statutory and rule conditions before applying it to a particular transaction.
The ₹200 amount is a statutory threshold, not a performance statistic or a safe harbour for every retail process. Keep the day-end consolidation traceable to the underlying supplies, and ensure that supplies outside the exception are invoiced in the normal manner.
Can a buyer claim input tax credit using a bill of supply?
A bill of supply is not the ordinary tax-charging supplier invoice used to substantiate input tax credit for a taxable purchase. CBIC’s input-tax-credit rules identify an invoice issued under section 31 and a debit note among the relevant documentary bases for credit.
Holding a document alone does not establish that credit is available. Eligibility remains subject to the Act’s and Rules’ other requirements and to the facts of the transaction. A buyer should check that the supply’s treatment and document are appropriate, and confirm that all other conditions for credit are met.
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If a buyer receives a bill of supply for a purchase it expected to be taxable, the issue should be resolved with the supplier and the underlying classification reviewed. Simply relabelling the document in the buyer’s accounting system does not create a tax charge or an ITC document. Conversely, a tax invoice should not be treated as proof of automatic credit without checking the other statutory conditions.
How do exports, inter-State supplies and exempt supplies differ?
“Exempt” and “zero-rated export” are not interchangeable descriptions. An exempt domestic supply generally follows the bill-of-supply route. An export has specific invoice endorsement and destination-related requirements under Rule 46, even though the tax outcome may differ from a normal taxable domestic sale.
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For an inter-State taxable supply, the tax invoice should include the place of supply. The supplier should also check whether the transaction is subject to a special export, reverse-charge or e-invoice process. State and Union Territory GST provisions can be relevant alongside the CGST framework, so a cross-border or multi-location transaction should not be reduced to a single generic template.
How can I check an invoice before issuing or accepting it?
Use this review sequence to catch common classification and completion errors before the document is recorded or sent.
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- Confirm the document type. Match taxable, exempt or composition treatment to the appropriate document; do not choose solely based on a template or a customer request.
- Check the parties. Verify supplier identification and GSTIN, then add recipient particulars required for the buyer and transaction.
- Check the reference and date. Confirm the serial number is consecutive and unique for the financial year, and that the issue date fits the applicable timing rule.
- Describe and value the supply. Confirm the description, applicable HSN or Accounting Code, quantity and unit for goods where required, and value after applicable discounts or abatements.
- Check tax treatment and special fields. For a tax invoice, review the rate, amount, place-of-supply or delivery details where relevant, reverse-charge indication and any export endorsement. For a bill of supply, do not show a tax rate or amount as tax charged on that document.
- Review special obligations. Check for a transaction-specific timing rule, notification, signature exception or e-invoice process requirement.
- Reconcile the document. Match the invoice or bill to the purchase order, dispatch or service record, payment terms and accounting entry. Investigate differences before filing it.
- Retain an audit trail. Preserve the issued document and the records supporting classification, value, timing and any consolidated low-value invoice process.
Common pitfalls include using a bill of supply simply because a customer asks for one, adding GST to a composition-scheme bill, omitting the place of supply on an inter-State tax invoice, reusing a serial number in the same financial year, and treating the ₹200 exception as unconditional. These are classification or process failures, not merely formatting mistakes.
If the document type or a required field is uncertain, resolve the underlying classification and applicable rule before issuing it. Correct formatting cannot cure a mismatch between the actual tax treatment and the document used.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Which rules should I verify for a specific transaction?
The general guidance here is based on CBIC’s CGST Act, invoice-rules, sectoral FAQ and input-tax-credit guidance, accessed on October 25, 2026. Rules and notifications may be amended or supplemented. For a live transaction, verify the current consolidated text and any relevant notification, especially where the supply crosses state or Union Territory boundaries, involves an export, falls into a special supplier class or may be covered by e-invoicing.
Check the current position particularly when:
- the supplier has recently entered or left the composition scheme;
- the supply combines taxable and exempt elements;
- the recipient is unregistered but the transaction may trigger additional particulars;
- the supply is continuous, made on approval or subject to reverse charge;
- the transaction is an export or otherwise crosses a state or Union Territory boundary; or
- the supplier belongs to a notified class with additional invoice or e-invoice processes.
This article explains the general Indian CGST framework; it is not a determination of the correct treatment for an individual supply. A taxpayer-specific question may turn on facts that a general checklist cannot resolve.
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Frequently Asked Questions
Can a composition taxpayer charge GST separately on a bill of supply?
A bill of supply does not show a GST rate or tax amount as tax charged on the document. Because composition suppliers generally use a bill of supply, do not treat that document as a regular tax invoice with GST added; confirm the current composition-scheme rules for the supplier’s circumstances.
Is an exempt supply the same as a zero-rated export?
No. They are distinct tax treatments. Export invoices have specific endorsement and destination-related particulars under Rule 46, so do not assume that the general bill-of-supply treatment for exempt supplies applies to an export.
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Does having a GST invoice mean I can automatically claim input tax credit?
No. The invoice is a relevant documentary basis, but possession of it alone does not guarantee eligibility. The other statutory conditions and the facts of the transaction still matter.
Can a customer choose whether I issue a tax invoice or a bill of supply?
No. The document follows the supply’s legal treatment and the supplier’s applicable scheme. A customer’s preferred label cannot turn a taxable supply into an exempt one or replace a required tax invoice.
Does a bill of supply show GST?
It identifies the supplier, recipient where applicable, supply and value, but it does not show a GST rate or tax amount as tax charged on that document.
What is the ₹200 GST invoice exception?
For a supply below ₹200, a registered supplier may omit an individual tax invoice only subject to prescribed conditions. CBIC describes the relevant case as an unregistered recipient who does not ask for an invoice, with a consolidated tax invoice issued at the end of the day for covered supplies.
Are goods and services invoiced within the same deadline?
No. Goods generally follow removal or delivery timing under section 31, while services generally have a prescribed 30-day period and specified financial suppliers generally have 45 days, subject to exceptions and special rules.
What should I do if a supplier sends the wrong document type?
Ask the supplier to review the supply classification, scheme status and applicable rule. A buyer should not rely on a relabelled document or assume input tax credit is available until the correct statutory document and other credit conditions are confirmed.
The Bottom Line
Use a tax invoice for a taxable supply by a registered supplier, showing the required GST rate and amount. Use a bill of supply for an exempt supply or a composition-scheme supply where the rules call for it, without showing GST as tax charged. Check the parties, financial-year-unique number, date, classification, value, timing and transaction-specific fields—including export, reverse-charge, inter-State and e-invoice requirements. The ₹200 omission is conditional, and neither document by itself guarantees input tax credit.
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