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Exempted goods supply by regular dealer. reg...

NAGA (ACCOUNTANT) (504 Points)

26 January 2022

sir,
i am a regular dealer and supply exempted goods, some times supply taxable items and some times supply both to registered tax payer(B2B).
now my query is. which bill i have to raised. bill of supply or tax invoice..?

experts, pls reply in all situations..

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18 Replies

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 26 January 2022

TAX INVOICE. BILL OF SUPPLY COULD BE USED ONLY IN CASE OF EXEMPTED SUPPLY ONLY.

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 27 January 2022

No you cannot issue bill of supply to Registered person .

As per Rule 46A , where registered person supplying taxable or Exempted goods to UNREGISTERED person a single " invoice cum bill of supply" can be issued for such supplies.

So for registerd person in term of Section 31 & r/w Rule 46, 48 , for Recepient the valid invoice will be "Tax Invoice" or "E-invoice" as case may be.

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 27 January 2022

For exempt supplies you will issue a bill of suply. For taxable supplies you will issue a tax invoice.

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 27 January 2022

@ CA Altamush
can you quote any section, notification, rule etc where it is given that RP can issue Bill of supply for Exempted supply made to RP

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 28 January 2022

Section 31(3)(c)

Nidhi (Chief Accountant) (3150 Points)
Replied 28 January 2022

U can use Invoice cum bill of Supply

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 28 January 2022

@ CA Altamush
Section 31(3)(c) : The provision of this clause applied to person paying tax under Notification 2/2019 CT (r) (New composition scheme paying tax @ 6%)
Kindly read the RoD 3/2019 CT , Which clearly prescribes that clause (c)
is applicable to only person paying tax under Notification 29/2019 CT (r) & Notification 29/2019 prescribing the New composition scheme paying tax @ 6% .

So it's applicable to Person opted for the composition scheme only.

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 28 January 2022

Sorry it's Notification 2/2019 CT (r) , so replace 29 by 2

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 29 January 2022

It's exempted for also.

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 29 January 2022

CA Zafar
It's only for the composition dealer , I think you have not refer the RoD & Notification. plz read & reply.

As RD whose GSTN is under Regular Scheme cannot issue "Bill of Supply"

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 29 January 2022

I think its plain english as far as section 31(3)(c) is concerned. The Act is very straightforward. No need to refer any notification for it.

Bill of Supply applicable on both supply of exempt supplies and also on all supplies of composition dealer.

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 29 January 2022

TAX INVOICE (Bill of Supply for exclusively exempted supplies)

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 30 January 2022

Again requested kindly refer above RoD , as RD to RD (Registered as Regular) cannot issue Bill of supply for even exclusive supply exempted goods or services.
(R/w Rule 46,48)