Composition Scheme Bill Format

Generally speaking, an invoice is a commercial instrument issued by a seller to a buyer. A goods and service tax invoice prepared, identifies both the trading parties, and lists, describes, and quantifies the items sold, shows the date of shipment and mode of transport, prices and discounts, if any, and the delivery and payment terms.

In exceptional cases, (especially when it is signed by the seller or seller’s agent), an invoice serves as a demand for payment and becomes a document of title when paid in full. 

Under the GST regime, an “invoice” or “tax invoice” means the tax invoice referred to in CGST Act, 2017. Invoicing rules under the GST act mandates the issuance of an invoice or a bill of supply for every supply of goods or services.

It is not true that only a person supplying goods or services needs to issue an invoice. The law on invoicing in GST mandates that any registered person buying goods or services from an unregistered person needs to issue a payment voucher as well as a tax invoice.

The invoice type to be issued depends upon the category of registered person making the supply.

Let’s take an example where a registered person is making or receiving supplies (from unregistered persons), then a tax invoice needs to be issued by such registered person. But in a scenario where a registered person is dealing only in exempted supplies or is availing the composition scheme (composition dealer), then such a registered person needs to prepare a bill of supply replacing normal invoice.

Such invoice should contain description, quantity and value & such other prescribed particulars (in case of supply of goods), and the description and value & such other prescribed particulars (in case of supply of services). An invoice or a bill of supply of value less than 200/- is exempted from provisions of invoicing rules under CGST Act 2017.

We can divide bill of supply into 4 sections.

Any bill of supply shall be issued by the supplier must contain the following details:

• Name, address and GSTIN of the supplier
• A consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters like hyphen or dash and slash symbolised as “-” and respectively, and any combination there of, unique for a financial year
• Date of its issue
• Name, address and GSTIN or UIN, if registered, of the recipient
• HSN Code of goods or Accounting Code for Services
• Description of goods or services or both
• Value of supply of goods or services or both taking into account discount or abatement, if any

A bill of supply for exports should also include a declaration regarding payment of GST and depending on the payment of IGST the following texts should appear on it.

And should follow up with details such as

• Name and address of the buyer
• Delivery address
• Destination country
• Number and date of application for removal of goods for export