Question
Whether an Unregistered person can issue “Bill
of Supply” ? In fact what should be the heading of commercial document to be
issued by Unregistered person (akin to Tax Invoice for Registered Person) ?
Answer
Facts of the case:
Unregistered person wants to issue a commercial document at the time of
sale. Whether the same can be a Bill of Supply.
Law Applicable:
As per section 31(3)(c) CGST
"a registered person supplying exempted goods or services or both or paying tax
under the provisions of section 10 shall issue, instead of a tax invoice, a bill
of supply..."
Interpretation:
The act is abundantly clear in making the registered person liable to make
an exempt supply under the cover of Bill of Supply. Therefore an unregistered
person can not be held liable to draw a Bill of Supply for each and every sale
made by them.
When a person is unregistered they stand outside the purview of the act and
hence can not be governed by the corresponding rules etc.
Conclusion:
Since the act is not applicable on a unregistered person therefore legally
they are not bound to draw a Bill of Supply. Practically an unregistered person
may simply make their sales under a cover of Invoice (not Tax Invoice) and he is
not bound with the format of invoice required under GST Laws (Reply
dt.22/04/2019)