Other Important Documents - Bill of Supply, Receipt and Payment, Voucher Credit and Debit Notes

Bill of Supply

Meaning

A Bill of Supply is issued by a supplier who is not liable to charge GST on their sales. Unlike a tax invoice, a bill of supply does not include GST details because the seller is either dealing in exempt goods/services or is registered under the Composition Scheme.

Who Should Issue a Bill of Supply?

1. Composition Scheme Dealers – As they pay tax at a fixed rate and cannot charge GST from customers.
2. Suppliers of Exempt Goods/Services – Since no GST is applicable on these supplies.

Contents of a Bill of Supply

• Name, Address, and GSTIN of the supplier.
• Unique Bill of Supply Number (consecutive and unique for each financial year).
• Date of issue.
• Name, Address, and GSTIN of the recipient (if registered).
• Description of goods/services supplied.
• Value of supply before tax.
• Signature of the supplier or an authorized representative.

Note: If a supplier issues both taxable and non-taxable supplies, they must issue a Tax Invoice for taxable supplies and a Bill of Supply for exempt supplies separately.

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Receipt and Payment Voucher

Receipt Voucher

A Receipt Voucher is issued by a supplier when they receive an advance payment for goods or services before actual supply. This document serves as proof of receiving an advance.

Contents of a Receipt Voucher:

• Name, Address, and GSTIN of the supplier.
• Unique Receipt Voucher Number.
• Date of issue.
• Details of recipient (Name, Address, GSTIN if registered).
• Description of goods/services.
• Amount received in advance.
• Applicable GST rate and tax amount (if known at the time of advance).
• Signature of the supplier.

If the supply does not take place after receiving the advance, a Refund Voucher must be issued for returning the amount.

Payment Voucher

A Payment Voucher is issued by a recipient (buyer) when they make a payment under Reverse Charge Mechanism (RCM). Since in reverse charge, the recipient, not the supplier, is liable to pay GST, they must issue this voucher for record-keeping.

Contents of a Payment Voucher:

• Name, Address, and GSTIN of the recipient.
• Unique Payment Voucher Number.
• Date of issue.
• Details of supplier (Name, Address, GSTIN if registered).
• Description of goods/services received.
• Value of supply before tax.
• Applicable GST rate and tax amount.
• Total amount payable.
• Signature of the recipient.

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Credit and Debit Notes

Credit Note

A Credit Note is issued by a supplier when:

• The invoice amount is higher than the actual value of goods/services supplied.
• Defective/damaged goods are returned by the recipient.
• There is a discount or rebate given after issuing the tax invoice.

The Credit Note reduces the tax liability of the supplier and must be reported in GST returns.

Contents of a Credit Note:

• Reference of the original tax invoice.
• Name, Address, and GSTIN of the supplier and recipient.
• Unique Credit Note Number.
• Date of issue.
• Value of supply before correction and corrected value.
• Difference amount adjusted.
• Applicable GST amount.
• Reason for issuing Credit Note.
• Signature of the supplier.

The recipient’s Input Tax Credit (ITC) must be reversed if a credit note reduces the taxable amount.

Debit Note

A Debit Note is issued by a supplier when:

• The invoice amount is lower than the actual value of goods/services supplied.
• Additional charges (such as extra quantity, interest, or penalty) need to be added to the invoice.

A Debit Note increases the tax liability of the supplier and must be reported in GST returns.

Contents of a Debit Note:

• Reference of the original tax invoice.
• Name, Address, and GSTIN of the supplier and recipient.
• Unique Debit Note Number.
• Date of issue.
• Value of supply before correction and corrected value.
• Difference amount adjusted.
• Applicable GST amount.
• Reason for issuing Debit Note.
• Signature of the supplier.

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