Rule 49: The Bill of Supply and When It Replaces an Invoice

Rule 49 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

Some supplies carry no tax. Documenting them on a tax invoice would misstate the transaction and, where the recipient is registered, invite a credit claim on tax that was never charged.

Section 31(3)(c): a registered person supplying exempted goods or services or paying tax under section 10 shall issue, instead of a tax invoice, a bill of supply containing the prescribed particulars. Rule 49 prescribes them. The first proviso applies the Rule 46 provisos mutatis mutandis. The second proviso allows any tax invoice or other similar document issued under any other Act to be treated as a bill of supply. The third proviso relaxes the requirement where the value is less than ₹200, subject to conditions.

When it is required

Two situations, and only two:

1. Supply of exempted goods or services or both. Including nil-rated and non-taxable supplies within s.2(47).

2. Supply by a person paying tax under section 10 — a composition taxpayer, who cannot collect tax under s.10(4).

Where both a taxable and an exempt supply are made to an unregistered person in the same transaction, Rule 46A permits a single invoice-cum-bill of supply instead. Rule 46A: the invoice-cum-bill of supply →

The particulars

Rule 49 requires:

(a) name, address and GSTIN of the supplier; (b) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters — hyphen or dash and slash — and any combination thereof, unique for a financial year; (c) date of its issue; (d) name, address and GSTIN or UIN of the recipient, if registered; (e) HSN code for goods or services; (f) description of goods or services or both; (g) value of supply of goods or services or both, taking into account discount or abatement, if any; and (h) signature or digital signature of the supplier or his authorised representative.

Compare Rule 46: there is no rate of tax, no amount of tax, and no place of supply field. There is nothing to charge, so there is nothing to show.

Rule 49 also requires a composition taxpayer's bill of supply to carry, at the top, the words "composition taxable person, not eligible to collect tax on supplies" — the declaration under Rule 5(1)(f) applicable to a person paying tax under s.10.

The three provisos

First — the Rule 46 provisos apply mutatis mutandis. So the HSN digit relaxations, the unregistered-recipient address deeming, and the export endorsement requirements carry over where relevant.

Second — a document under another Act. "Provided further that any tax invoice or any other similar document issued under any other Act for the time being in force in respect of any non-taxable supply shall be treated as a bill of supply for the purposes of the Act."

This is a practical relaxation of some breadth. A State excise invoice for alcoholic liquor, or an invoice issued under another statute in respect of a non-taxable supply, is treated as a bill of supply. A liquor retailer does not issue a separate GST document for the liquor line.

Third — the ₹200 relaxation. The proviso to s.31(3)(b), applied to bills of supply, allows a registered person not to issue a bill of supply where the value of the supply is less than ₹200, subject to conditions — the recipient is not a registered person and does not require the document, and the supplier issues a consolidated bill of supply for such supplies at the close of each day.

What a bill of supply does not do

It carries no tax, so it supports no credit. A recipient holding a bill of supply has nothing to claim, and Rule 36 does not list it among the documents on which credit may be availed. Rule 36: which documents support a credit claim →

It does not remove the reporting obligation. Exempt outward supplies are reported in GSTR-3B Table 3.1(c) and GSTR-9 Table 5D; composition supplies through CMP-08 and GSTR-4.

It does not remove the ITC apportionment. Exempt turnover documented on a bill of supply enters E in the Rule 42 computation. Rule 42 worked →

It does not travel alone below the e-way bill threshold. Rule 55A requires the person in charge of the conveyance to carry a copy of the tax invoice or the bill of supply where no e-way bill is required. Rule 55: delivery challan →

Key takeaways

• A bill of supply is required for exempt supplies and by composition taxpayers.
• Rule 49 particulars omit rate, tax amount and place of supply.
• A composition dealer's bill of supply must carry the prescribed "not eligible to collect tax" declaration.
• A document under another Act for a non-taxable supply is treated as a bill of supply.
• Supplies below ₹200 to unregistered recipients may be covered by a consolidated daily bill of supply.
• It supports no credit, but the reporting and apportionment obligations remain.

Read next

• Bill of Supply for Exempt and Composition Dealers
• Rule 46A: The Invoice-cum-Bill of Supply
• Rule 46: Every Particular a Tax Invoice Must Carry
• Rule 36: Which Documents Support a Credit Claim

Disclaimer: Positions stated as on 5 September 2026, based on the CGST Act and Rules as amended to 31 March 2026 (ICAI Bare Law, 12th edition) and the ICAI Handbook on Invoicing under GST (2025).