Knowledge Centre
Bill of Supply or Tax Invoice: which should you issue?
An unregistered business must not charge GST, and the document it issues is not a tax invoice. The difference is not cosmetic.
Tax Invoice
Issued by a GST-registered supplier making a taxable supply. It shows the GSTIN of both parties, HSN or SAC codes, the taxable value and the tax split, and it is what lets your customer claim input tax credit.
Bill of Supply
Issued when no tax is being charged — most commonly by a business below the registration threshold, and also for exempt supplies or under the composition scheme. It carries no GST and confers no input credit.
Charging GST without registration
Collecting tax you are not registered to collect is an offence, not a paperwork slip. It is an easy mistake to make with software that assumes every user has a GSTIN and offers tax rates regardless.
How billkraft handles it
Sign up without a GSTIN and tax is forced to zero on the server, the GST fields are hidden, and the PDF is headed Bill of Supply. Add your GSTIN when registration comes through and documents become tax invoices from that point.
General information about how GST works, not tax advice. Rules change and the detail matters, so check your own position with your accountant.
Try it on your own numbers
Free to start, no card required. Raise your first invoice in a few minutes.