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GST

Bill of supply and display rules for composition dealers

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A composition taxpayer issues a bill of supply, not a tax invoice, and writes 'composition taxable person, not eligible to collect tax on supplies' at the top. The words 'composition taxable person' must also be displayed at a prominent place at the shop.

Provisions

Rule 5, CGST Rules 2017; Sec 10(4), CGST Act 2017; Rule 49, CGST Rules 2017

Analysis

Example: a sweet shop in composition issues a bill of Rs 500 with no GST line. Showing GST on the bill would mean collecting tax you are not allowed to collect. The display board helps customers and officers see your status. Update your billing software template the day composition starts.

Close

  1. Change bill format to bill of supply with the required words
  2. Remove GST lines from bills
  3. Display 'composition taxable person' at the shop and on the signboard
  4. Train staff not to add GST

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