GST Composition Scheme: Bill of Supply Declaration
Prepare the declaration a composition taxpayer uses on its bills of supply and in correspondence, confirming its status under Section 10.
What it is
A business that has opted for the composition scheme under Section 10 of the CGST Act pays tax at a fixed rate on turnover and cannot charge GST to customers. It issues a bill of supply instead of a tax invoice, and must mention the words "composition taxable person, not eligible to collect tax on supplies" on the bill and display it at the place of business. This template records the declaration with the type of composition taxpayer, the date opted and the turnover.
When it is used
- Customers or vendors ask you to confirm composition status.
- Printing bills of supply and signboards.
- Supplier onboarding forms of large buyers.
What the template covers
- Entity name, GSTIN and address
- Type of composition taxpayer
- Date from which composition was opted
- Previous year turnover
- Statement for bills of supply
- Authorised signatory
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Letter
Letter Date; Place
Entity
Entity Name; GSTIN; Address; Type of Composition Taxpayer
Election
Composition Opted From; Previous Year Turnover (₹)
Signatory
Authorised Signatory; Designation
Stamp duty, registration and filing
A composition taxpayer cannot collect tax, cannot claim input tax credit, cannot make inter-State outward supplies of goods, and cannot supply through e-commerce operators that collect tax, except as notified. It pays tax quarterly in Form GST CMP-08 and files an annual return in GSTR-4. The rates are 1% for manufacturers and traders, 5% for restaurant services and 6% for eligible service providers (CGST plus SGST). Check the current conditions on cbic-gst.gov.in.
Generate the GST Composition Scheme — Bill of Supply Declaration
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. GST registration or returns)? Contact SKAG and Associates
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Frequently asked questions
Can a composition dealer charge GST on the invoice?
No. A composition taxpayer issues a bill of supply without tax and pays tax from its own pocket.
Can a composition dealer sell outside the State?
Not for goods. Inter-State outward supply of goods is not allowed under the scheme.
Does the buyer get ITC on purchases from a composition dealer?
No, because no tax is charged on a bill of supply.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.