General information, not tax or legal advice. GST and transport rules change from time to time. Check the official source linked below, or ask your CA, before acting on anything here.
The short answer
| Your business | What you issue | Can you show GST on it? |
|---|---|---|
| Registered under GST (regular), selling taxable goods or services | Tax invoice | Yes |
| Registered under the composition scheme | Bill of supply | No |
| Registered, but selling only exempt goods or services | Bill of supply | No |
| Not registered under GST | A plain bill or cash memo | No |
Tax invoice
A regular GST-registered business issues a tax invoice for taxable sales — to other businesses and to ordinary customers alike. It must carry all the details listed in our GST invoice checklist, including the tax charged.
Small retail sales: for a sale below ₹200 to an unregistered customer who does not ask for a bill, the law allows you to skip a separate invoice — but you must then issue one consolidated invoice for all such sales at the end of each day.
Bill of supply
A composition taxpayer pays tax at a fixed rate on turnover and is not allowed to collect tax from customers. So instead of a tax invoice, they issue a bill of supply — with no tax shown on it. Composition taxpayers must also write the words “composition taxable person, not eligible to collect tax on supplies” at the top of the bill of supply.
A regular registered business that sells only exempt goods or services (for example, some unprocessed farm produce) also issues a bill of supply instead of a tax invoice.
Cash memo
“Cash memo” is the everyday name for a simple bill. A business that is not registered under GST can give one, showing the items, quantity, rate and total — but it must not show or collect any GST.
A registered business may call its retail bill a cash memo, but in law it is still a tax invoice (or bill of supply) and must carry the required details.
Everyday examples
- A regular GST-registered kirana shop sells groceries worth ₹1,450 to a walk-in customer: it gives a tax invoice (often printed as a small retail bill), showing the GST included.
- The same shop sells a ₹120 packet to a customer who does not want a bill: no separate bill is needed, but the sale goes into the consolidated invoice made at the end of the day.
- A composition dealer sells to a registered business: it gives a bill of supply. The buyer cannot claim input tax credit on it.
- A small unregistered trader sells goods: a plain cash memo with no GST on it.
When your status changes
When you move from composition to the regular scheme (or the other way round), the type of bill changes from that date. Start a fresh number series if it helps you keep the two kinds of bills apart.
Official sources
- GST Council — Flyer on tax invoice and other instruments
- CBIC — Rule 46, CGST Rules 2017
- CBIC — Tax invoice, credit and debit notes (GST rules)
In GOODLOAD you choose “Tax invoice” or “Cash memo” for every bill, and the right details appear by themselves.
Open the app