GST ON BILL OF SUPPLY

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Tapas

Accountant

29 Points Posted on 11 October 2023

Air Asia registered in West Bengal with same GST no when billing for CCU-BLR doing Tax Invoice and for CCU-IXB (Bagdogra) they are giving Bill of Supply. Similarly registered in Karnataka billing for BLR-Bagdogra they are giving Bill of Supply. Can anyone please clear why they are raising Tax Invoice & Bill of Supply simultaneously. Also can I take input against bill of supply. Please clear my doubts.

Replies (5)

Quick Summary

This discussion clarifies the difference between a GST Bill of Supply and a Tax Invoice. A Bill of Supply is issued for exempt supplies, meaning no GST is charged and input tax credit (ITC) cannot be claimed. Conversely, a Tax Invoice is used for taxable supplies, allowing for ITC claims under specific conditions. The example of Air Asia issuing different documents for different flight routes (like Bagdogra, which is GST-exempt) illustrates this distinction.

Ashwin Kumar

CA ipcc

315 Points Posted on 13 October 2023

Bill of supply and tax invoice are two different documents..you treat bill of supply as something like performa whereas tax invoice is the actual document. you can't avail credit based on bill of suppl, it stax invoice against which you can avail credit.

Tapas

Accountant

29 Points Posted on 13 October 2023

Sir,

Thanks for your reply. But Sir with same GST no, sometimes they are issuing Tax invoice and sometimes Bill of Supply. Why it is like this. Please clarify.

Suresh Kumar

Account

298 Points Posted on 13 October 2023

As per GST guidelines, which came into force on July 18, 2022, exempt the following destinations from GST.

Economy class tickets to and from:

Bagdogra (West Bengal)
North-Eastern States (Assam, Sikkim, Tripura, Arunachal Pradesh, Manipur, Mizoram, Meghalaya, and Nagaland)

Thats why , Route to/from Bagdorga........issues Bill of Supply and in other cases issue Tax Invoices.

In case of exempt supply, Bill of Supply issues and there is NO GST on it so no question of ITC on it.

In Case of Tax Invoice, You can avail ITC subject to satification of conditions laid down u/s 16& 17 CGST Act

Tapas

Accountant

29 Points Posted on 13 October 2023

Thanks you Sir for your reply.

Aashok Kumar Sharma

Finance/Compliance Consultant

75653 Points Posted on 08 November 2026

Airline issuing a bill of supply for some routes:
• Air transport of passengers is taxable (economy at 5%), but certain routes are exempt, e.g. flights embarking or terminating at notified North-East airports or Bagdogra, and Regional Connectivity Scheme flights for a limited period.
• If CCU (Kolkata) to some destination is exempt (e.g. to a North-East airport), a bill of supply is issued.
• The same GSTIN can issue both tax invoices and bills of supply.