GST Invoice Format Under Composition Scheme (Free PDF)

If you are registered under the GST composition scheme, the document you hand your customer is not a tax invoice — it is a Bill of Supply. It carries no GST charged to the buyer, it should state that you are a composition taxable person, and it has to show the tax rate as zero or "Nil" rather than a CGST/SGST split. Get the heading wrong and you've issued a document you're not entitled to issue.

That's the short answer. Below is the field list, a worked example, and how to produce one as a clean A4 PDF without a sign-up.

Bill of supply vs tax invoice: the one thing people get wrong

A regular GST-registered business issues a tax invoice, which charges CGST/SGST or IGST on the face of the document and lets the buyer claim input tax credit.

A composition dealer cannot do either. Under the composition scheme you pay tax at a flat rate on turnover rather than collecting it on each sale, which means:

• You cannot charge GST on your invoice.
• You cannot issue a tax invoice — the correct document is a Bill of Supply.
• Your buyer cannot claim input tax credit on your bill, so customers who are themselves GST-registered will usually ask about this up front.

The exact conditions, turnover ceilings and flat rates vary by year, by state and by the type of goods or services, and they change. Rather than rely on a blog number, check the current position on the official GST portal or with your CA before you decide the scheme still suits you.

One practical note: a composition dealer may still need to issue a tax invoice in some situations, for example on certain purchases or reverse-charge cases. Those are exceptions, and they depend on your circumstances — confirm with the portal or a professional.

Photo by Aaron Lefler on Unsplash

The mandatory fields on a composition invoice format

There is no single government-prescribed pixel layout, but a Bill of Supply issued under composition needs to carry the following. Treat it as a checklist:

1. The words "Bill of Supply" as the document heading — clearly, at the top. This is what distinguishes it from a tax invoice.

2. Your GSTIN, your trade name and full address.

3. Your customer's name, address and GSTIN if they are registered.

4. A consecutive serial number, unique for the financial year — no gaps, no duplicates.

5. Date of issue.

6. Description of goods or services — clear enough that the buyer knows what was supplied.

7. HSN code for goods (or SAC for services). Composition dealers commonly show HSN at four digits rather than the longer codes required of larger taxpayers. Confirm the current digit requirement for your turnover slab on the GST portal.

8. Quantity and unit (or UQC — unit quantity code — where applicable).

9. Total value of the supply.

10. Rate of tax shown as "Nil" or 0%, or the field simply absent, since no tax is charged.

11. The declaration that you are a composition taxable person and are not eligible to collect tax — often worded as a statement to that effect placed above your signature.

12. Place of supply, where your invoice format includes it.

13. Signature of the supplier or an authorised signatory.

Points 1 and 11 are the two that generic invoice templates almost always miss. A template that says "Tax Invoice" and prints a CGST column is worse than no template at all, because it looks official and is wrong.

If you want a downloadable starting point rather than building from a blank sheet, free invoice templates are a reasonable place to look at field structure — then strip out the tax columns and retitle it.

Ready to try it? Create a professional invoice in under two minutes with Invoala's free invoice generator, no sign-up and no watermark.

Example: a ₹48,000 supply by a composition dealer

Say you run a small trading business registered under the composition scheme in Maharashtra, and you supply furniture to a local buyer.

• Goods: 12 chairs
• Rate: ₹4,000 per chair
• Taxable value: 12 × ₹4,000 = ₹48,000
• GST charged: ₹0 (composition dealers do not charge GST on the bill)
• Freight: ₹1,200
• Total payable by the buyer: ₹49,200

Your document reads:

BILL OF SUPPLY

Serial No. CS/2025-26/017 · Date: as issued

HSN 9403 (4-digit) · 12 chairs · ₹48,000

Freight ₹1,200 · Total ₹49,200

Tax rate: Nil

Declaration: I am a composition taxable person and not eligible to collect tax on supplies.

Notice what is not there: no CGST line, no SGST line, no "Tax Invoice" heading. If that buyer is GST-registered and wanted credit, they cannot take it from this bill — worth telling them before you raise it, because it is the single most common reason a composition dealer's bill gets queried.

If your supplies are services rather than goods, the same logic applies with a SAC code instead of HSN, and the total is simply the agreed fee with tax shown as Nil.

Photo by Saad Ahmad on Unsplash

How Invoala helps you produce one

Invoala is a free invoice generator that works in the browser: you fill a form, and it produces an A4-accurate PDF that prints without scaling surprises. There is no sign-up and no watermark on the output.

Step by step, for a composition bill of supply:

1. Open the generator and choose the invoice or bill layout closest to what you need.

2. Set the document title to "Bill of Supply". This is the field people skip.

3. Enter your business details and GSTIN, plus the customer's details.

4. Add line items with description, quantity and the 4-digit HSN or SAC code.

5. Leave tax at nil — do not add CGST/SGST lines.

6. Add the composition declaration in the notes area so it prints above the signature block.

7. Download the PDF and send it.

Because there's no account, nothing about your customer list sits in a login you have to manage, and the file is yours immediately. If you're using this for the first time, the step-by-step guide to creating an invoice walks through the fields before you start.

Two things Invoala does beyond generating the file: you can track which invoices are paid, due or overdue, and set up follow-ups for unpaid invoices so a late payer gets chased without you writing the email yourself. For a composition dealer with a handful of regular buyers, that's usually the part that slips.

Mistakes to avoid on a composition bill

• Titling it "Tax Invoice." Wrong document, and it invites questions from your buyer's accountant.
• Adding CGST/SGST columns. Even at 0%, showing the columns signals you may be charging tax you're not entitled to collect.
• Omitting the composition declaration. It is the field that explains why no tax appears.
• Skipping HSN/SAC. Four digits is the usual expectation for composition dealers; longer codes depend on your turnover slab.
• Breaking the serial sequence. Serial numbers need to run consecutively through the financial year without gaps.
• Assuming your buyer can claim credit. They can't on a bill of supply. Say so early.

For rates, ceilings, digit requirements and any exception that might require you to issue a tax invoice instead, the GST portal or a CA is the right source — not a template. The format above gets the document structurally right; the current rules for your turnover and state are for you to confirm.

Generate a compliant-looking Bill of Supply, no sign-up: Invoala's free invoice generator.

This article is general information, not tax, legal or financial advice. Rules, rates and deadlines vary by country and change over time. Check with your tax authority or a qualified professional before acting on anything here.