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Composition dealers and sellers of exempt goods issue a bill of supply, not a tax invoice. They cannot charge GST separately on the bill.
GST
Bill of supply instead of tax invoice
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Provisions
Rule 49, CGST Rules 2017; Sec 10, CGST Act 2017
Analysis
Rule 49 sets the contents of a bill of supply, and composition dealers must also mention that they are a composition taxable person not eligible to collect tax. Example: a composition grocery shop selling ₹2,000 of goods writes ₹2,000 on the bill with no GST line. Showing GST on the bill would be collecting tax you are not allowed to collect.
Close
- Use a bill book or billing app set to bill of supply.
- Print the composition declaration on the bill.
- Do not show any GST line.
- Record bills in your daily register.
Charging GST on the bill as a composition dealer is a common and costly mistake.
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