Free Bill of Supply Generator

The rules, explained

When must an Indian business issue a Bill of Supply instead of a Tax Invoice?

Under the GST law, the document you hand to a customer tells them — and the tax department — whether tax was charged and whether they can claim credit for it. Choosing the wrong one is one of the most common compliance slips small suppliers make. Here is where the line falls.

What a Bill of Supply is

Section 31(3)(c) of the CGST Act, 2017 requires a registered person who is supplying exempted goods or services, or who is paying tax under the composition scheme, to issue a bill of supply instead of a tax invoice. Rule 49 of the CGST Rules then prescribes what that document must contain. The defining feature is simple: a bill of supply shows no tax. There is no CGST, SGST or IGST column, no tax rate and no tax amount, and the recipient cannot claim any input tax credit against it.

Tax Invoice vs. Bill of Supply at a glance

The three situations that call for a Bill of Supply

1. You are a composition dealer

The composition scheme under Section 10 lets small businesses — manufacturers, traders and restaurants with aggregate turnover up to ₹1.5 crore (₹75 lakh in certain special-category states), and service providers up to ₹50 lakh under Section 10(2A) — pay GST at a flat rate on their own turnover instead of on each sale. In exchange, they may not collect tax from customers and may not claim input tax credit. Every sale they make must therefore be documented on a bill of supply, with their GSTIN and the prescribed declaration printed at the top. Composition dealers are also barred from making inter-state outward supplies of goods, which is why the generator warns you if the place of supply is in a different state.

2. You are supplying exempt or nil-rated goods or services

A regular registered person selling fresh produce, unbranded grains, educational or healthcare services, or anything else that is exempt or attracts a nil rate, has nothing to charge and must issue a bill of supply for those items. If a single sale mixes taxable and exempt items and the buyer is unregistered, Rule 46A allows one combined “invoice-cum-bill of supply”.

3. You are not registered under GST at all

Freelancers, home businesses and small retail suppliers whose aggregate turnover is below the registration threshold — ₹40 lakh for goods and ₹20 lakh for services in most states, halved in special-category states — are not required to register. An unregistered person cannot charge GST under any circumstances; collecting tax without registration is an offence under Section 32. The GST Rules technically define the bill of supply for registered persons, so what an unregistered vendor issues is a plain bill that behaves exactly like one: no GSTIN, no tax, and a clear note that the supplier is unregistered. That is what this generator produces in “Not registered” mode, and it is what most customers, accountants and marketplaces expect to see.

Who this free bill generator is for

Most online bill generators are built for a regular GST-registered business charging tax. This one is deliberately the opposite: it is for the far larger group of Indian sellers who must not put GST on the document at all.

Small businesses below the registration threshold

If your aggregate turnover is under ₹40 lakh for goods or ₹20 lakh for services (₹20 lakh and ₹10 lakh in the special-category states), you are not required to register, and you cannot charge GST. You still need to hand customers a clean, numbered bill for their books — one that shows no tax and says plainly that you are unregistered. That is what this generator produces, free and without an account.

Restaurants under the composition scheme

A restaurant with turnover up to ₹1.5 crore can opt into the composition scheme and pay a flat 5% on its own turnover. In exchange it cannot collect any GST from diners, so every bill it hands over must be a bill of supply carrying the words “Composition taxable person, not eligible to collect tax on supplies”. Select Composition dealer above and the declaration is added for you. A restaurant paying tax at the regular rates is in the opposite position and must issue a tax invoice, which this tool does not produce.

Traders and manufacturers under composition

The same logic covers composition traders and manufacturers up to ₹1.5 crore, and composition service providers up to ₹50 lakh under Section 10(2A). All of them bill on a bill of supply, never a tax invoice.

Anyone selling exempt or nil-rated goods

Fresh produce, unbranded grains and flour, educational and healthcare services and other exempt supplies are billed on a bill of supply even by a regular registered business, because there is no tax to show.

What Rule 49 says the document must contain

1. Name, address and GSTIN of the supplier (GSTIN not applicable to unregistered vendors).
2. A consecutive serial number, unique for the financial year, of up to 16 characters (letters, numerals, hyphens and slashes).
3. Date of issue.
4. Name, address and GSTIN or UIN of the recipient, if registered.
5. HSN code for goods or SAC for services, to the extent required for your turnover band.
6. Description of the goods or services.
7. Value of the supply, taking into account any discount or abatement.
8. Signature or digital signature of the supplier or an authorised representative.

The generator lays out every one of these fields, adds the place of supply (useful for inter-state checks and for your own records), and writes the total in words using the Indian lakh-and-crore system so the figure cannot be misread.

Small-value supplies and the ₹200 rule

Rule 49 borrows the relaxations in Rule 46: a registered person need not issue a bill of supply where the value of the supply is less than ₹200, the recipient is not registered and does not ask for one — provided a consolidated bill of supply is issued at the close of each day covering all such sales. A document issued under any other law (for example a receipt under a state VAT law for alcohol) is treated as a bill of supply for GST purposes.

Mistakes to avoid

• Titling it “Tax Invoice”. The heading itself signals that tax was charged. Use “Bill of Supply”.
• Adding a GST line while unregistered. Even a “0%” line invites questions; leave tax out entirely.
• Dropping the composition declaration. It is mandatory on every bill a composition dealer issues.
• Restarting serial numbers mid-year. Serial numbers must run consecutively through the financial year.
• Inter-state sales under composition. Not permitted for goods; check before you ship across a border.
• Losing the copy. Section 36 requires records to be kept for 72 months from the due date of the annual return for that year — download and file every PDF.

This page is general information, not tax advice. Thresholds and rules change; confirm your position with a chartered accountant or GST practitioner before issuing documents. VendorDesk is not liable for tax auditing errors — see our terms of service.