What is the difference between a GST invoice and a bill of supply?

A bill of supply is used when no GST is charged on the supply. A GST tax invoice (often called a GST invoice) is used when GST is charged. That is the core difference: tax charged versus no tax charged.

• Use a tax invoice for taxable supplies where you charge CGST/SGST or IGST.
• Use a bill of supply when you do not charge GST — for example under the composition scheme or for exempt supplies, as the GST rules allow.

A registered buyer normally needs a valid tax invoice to claim input tax credit (ITC). A bill of supply does not create ITC for the buyer in the same way a tax invoice does.

Why the document type matters

Under GST, the document type tells the buyer and your books whether tax was charged.

• Tax invoice (GST invoice): used for a taxable supply by a regular registered taxpayer. GST is charged on the document. The buyer may claim ITC when the legal conditions are met.
• Bill of supply: used when tax is not charged on the document — for example composition dealers or exempt supplies where the rules require a bill of supply. The buyer does not get ITC from this document.

Issuing the wrong document can confuse filings and ITC claims. Keep the type consistent with whether tax is charged.

Official GST basis

Indian GST law and rules set when a tax invoice or a bill of supply must be issued. In practice:

• Tax invoices for taxable supplies follow Section 31 of the CGST Act and the invoice rules (including Rule 46 of the CGST Rules for tax invoice particulars).
• Bills of supply are covered under the CGST Rules for cases where tax is not charged (commonly discussed under Rule 49 for bill of supply).

For the current legal text and notifications, check the official GST / CBIC sources such as gst.gov.in and cbic-gst.gov.in. Do not treat this article as a substitute for a chartered accountant or the latest notification.

Simple examples

Tax invoice: A regular GST-registered shop in Maharashtra sells taxable goods to a registered buyer in Maharashtra and charges CGST and SGST. The shop issues a tax invoice showing GSTIN details, HSN, taxable value, and tax amounts.

Bill of supply: A composition-scheme taxpayer (where rules require a bill of supply and do not allow charging tax on the invoice) sells goods without charging GST on the document. The buyer does not claim ITC from that bill of supply.

What to do next

If you need one GST invoice quickly in the browser, use the GST invoice generator. For ongoing GST billing software for Indian MSMEs, see Billoxy.