CMP-08 › Bill of supply

Bill of supply for composition dealers

A composition dealer cannot collect GST from customers, so the document for a sale is a bill of supply, not a tax invoice.

What the bill must show

• The words "composition taxable person, not eligible to collect tax on supplies" at the top (section 31(3)(c) and Rule 49).
• Your name, address and GSTIN; bill number and date; customer's name (and GSTIN if they have one); description, HSN, quantity and value.
• No GST rate or GST amount.

The billing maker makes a bill of supply with this note when your registration is set to "Composition" in My data.

Other rules for composition dealers

• Write "composition taxable person" on the signboard at your main place of business and every other place (Rule 5(1)(g)).
• No input tax credit on purchases. Your buyers cannot take credit on what they buy from you either.
• Reverse charge still applies to you on notified purchases, at the normal GST rate, paid in cash through CMP-08.
• One PAN, one scheme: if one registration under your PAN opts out, all of them are out.

Example of the top of the bill