Composition Scheme Bill

Are you a composition dealer looking for a composition bill format? Here’s what you need to know about the composition scheme bill format.

A composition dealer is someone who has opted for the composition tax levy method under Section 10 of the CGST Act, 2017. Here’s what it means:

• Composition Scheme under GST, composite supply means a combination of two or more goods or services that are sold together and cannot be supplied separately.

• One of the major benefits of this simple and straightforward scheme is that the composition dealer is exempted from the hassles of GST formalities and can pay GST at a fixed percentage of his/her turnover instead of paying at the standard rate.

• While dealers who pay GST under the regular scheme issue a tax invoice, dealers under the composition scheme will issue a bill of supply instead of the tax invoice.

Hence, knowing the format of the bill of supply for a composition dealer is a crucial part of the composition scheme documentation. 

Components of the bill format for composition dealer

The contents of a composition bill format or bill of supply issued by a composition dealer are slightly different from a regular tax invoice.

An invoice format for composition dealers is basically a template that can be customised and curated as per the business requirements. If you are looking for a composition scheme bill format, make sure that your composition invoice format has the following components:

• Date of issue of the bill of supply.
• Bill of supply number (each bill of supply carries a unique number for a particular financial year).
• Name, address, and GSTIN of the supplier.
• Name, address, and GSTIN or Unique Identification Number (UIN) of the recipient.
• Services Accounting Code or the HSN Code for goods.
• Description of goods or services (as applicable), including quantity and rate.
• The total value of supply of the goods or services.
• Signature of the supplier.

What can you change and customise in the composition bill format?

The best part about using an online composition scheme invoice format is that you can customise it to match your specific needs.

myBillBook invoice and bill generating software offers a host of features to help you personalise a composition dealer bill format. Here’s a list of what you can change and customise in a composition scheme invoice format:

• Templates: You can choose from multiple invoice templates, colours, and themes to add a professional look to your bills.

• Add custom fields: Are you not happy with the composition invoice format? You can add custom fields such as vehicle no., Batch no., Eway bill, etc.

• Customise according to business type: Regardless of your type of business (distributor/trader/wholesaler/retailer/stockist) and industry (pharmacy, FMCG, electronics, etc.), you will find ample options to customise your composition bill format.

• Printing options: You can print bills according to your needs. myBillBook supports regular printing (A4 and A5) and thermal printing (2-inch and 3-inch paper).

• WhatsApp and email support: If you like to go entirely paperless, myBillBook even lets you share bills and invoices instantly via email and WhatsApp. 

FAQs about GST Composition Invoice

1. Who is eligible for the composition scheme under GST?

Ans: Taxpayers who have a turnover of less than Rs. 1.5 crore are eligible for the composition scheme under GST. However, in Himachal Pradesh, Tripura, Sikkim, Nagaland, Mizoram, Meghalaya, Manipur, Assam, and Arunachal Pradesh, the limit of the turnover is Rs. 75 lakh.

2. Who is not eligible for the composition scheme under GST?

Ans: The following persons are not eligible to opt for the composition scheme:

• A casual or a non-resident taxable person.
• Supplier of services (except restaurant service).
• Supplier of non-taxable goods under the GST law.
• A person involved in the inter-state supply of goods.
• Businesses that supply goods through an e-commerce operator.
• Manufacturers of ice cream, pan masala, tobacco, and tobacco substitutes.

3. How can I opt for the composition scheme?

Ans: Eligible taxpayers can opt for the composition scheme by electronically filing FORM GST CMP-02 on the GST Portal. 

4. How does a composition dealer make GST payments?

Ans: A composition dealer makes GST payments that comprise the following:

• GST on the supplies made.
• Tax on purchase from an unregistered dealer.
• Tax on reverse charge.

5. What is a bill of supply?

Ans: A bill of supply is documentation issued by a GST registered composition dealer when GST is not applicable on a transaction. Such a bill is issued in place of a regular tax invoice, primarily by businesses and vendors dealing with GST exempted goods.

6. What is a composition dealer bill format? 

Ans: A composition dealer bill format or bill of supply format is a template that contains all the required components of a standard bill of supply. Dealers under the GST composition scheme can download the composition bill format online and customise it as per their business needs.

7. Where can I get a composition dealer invoice format?

Ans: You can download a composition dealer invoice format online. myBillBook offers a range of composition scheme bill format and template options that can be customised and printed.

8. How can I customise my composition invoice format?

Ans: You can easily make customisations to your composition invoice format, such as change the themes and colours or add custom fields. Head to myBillBook to avail of a wide range of customisation features! The app also allows you to generate different invoices including sales invoices, proforma invoices, debit/credit notes, delivery challans, etc.