Composition Scheme Billing in Excel (Bill of Supply)

Last updated: 27 June 2026 · For composition dealers under GST.

A composition dealer cannot charge GST on the invoice, so in Excel you issue a "Bill of Supply" — not a tax invoice — with no CGST/SGST/IGST columns, and the mandatory line "composition taxable person, not eligible to collect tax on supplies." You pay GST yourself at a flat rate on turnover (1% for traders/manufacturers, 5% for restaurants) and file CMP-08 quarterly, so your Excel sheet tracks turnover, not collected tax.

Key takeaways

No tax on the bill. A composition dealer issues a Bill of Supply, never a tax invoice, and cannot show or collect GST.
Mandatory declaration must appear on every bill: "composition taxable person, not eligible to collect tax on supplies."
You pay a flat rate on turnover: 1% (manufacturers & traders), 5% (restaurants, non-alcohol), 6% (eligible service providers under 10(2A)).
No Input Tax Credit — you can't claim ITC on purchases, so don't build ITC columns.
Turnover limits: up to ₹1.5 crore (general states) / ₹75 lakh (special-category states) for goods; ₹50 lakh for the service-provider option.
File CMP-08 quarterly (by the 18th of the month after the quarter) and GSTR-4 annually.

Fact box. A registered person under the composition scheme cannot collect GST from customers and cannot claim Input Tax Credit. They issue a Bill of Supply and pay tax at a fixed percentage of turnover: 1% for manufacturers and traders, 5% for restaurants. (Source: CGST Act, Section 10; CBIC.)

Who can use the composition scheme?

Small taxpayers whose aggregate turnover stays within the limit and who meet the conditions (no inter-state outward supplies, no e-commerce sales through operators, not dealing in notified ineligible goods).

Category	Turnover limit	Rate
Manufacturers & traders (goods)	₹1.5 crore (₹75 lakh special-category states)	1%
Restaurants (non-alcohol)	₹1.5 crore	5%
Service providers, Sec 10(2A)	₹50 lakh	6%

If your turnover crosses the limit during the year, you must move to the regular scheme from that point. Special-category states (where the lower ₹75 lakh limit applies) currently include Manipur, Mizoram, Nagaland, Tripura, Arunachal Pradesh, Meghalaya, Sikkim, Uttarakhand, Puducherry and Telangana — note that Assam and J&K, though special-category states, have opted for the higher ₹1.5 crore limit. Confirm the current list and any limit revision for your state on cbic-gst.gov.in before filing.

How is a Bill of Supply different from a tax invoice?

A tax invoice shows GST charged to the buyer; a Bill of Supply does not, because a composition dealer has no tax to pass on. The Bill of Supply still needs the standard particulars — your name, address and GSTIN, a serial number, date, the buyer's details, description, HSN/SAC, value — but no tax columns and no tax amount.

It must also carry the declaration that you are a composition taxable person not eligible to collect tax.

How do I build the Bill of Supply in Excel?

Use a single-invoice template with these blocks — and deliberately leave out CGST/SGST/IGST:

Field	Note
Your name, address, GSTIN	Header
"Bill of Supply" title	Not "Tax Invoice"
Serial number, date	Continuous numbering
Buyer name & address	GSTIN optional for B2C
Description, HSN/SAC	Goods/services
Quantity, rate, value	No tax columns
Total value	`=SUM(line values)`
Declaration line	Mandatory (below)

Footer text to include verbatim:

"Composition taxable person, not eligible to collect tax on supplies."

Fact box. Every Bill of Supply issued by a composition dealer must display the words "composition taxable person, not eligible to collect tax on supplies" at the top of the document. (Source: CGST Rules, invoice/bill-of-supply provisions.)

How do I track turnover and prepare CMP-08?

Because your tax is a percentage of turnover, your Excel job is to total turnover, not collected tax:

Keep one row per Bill of Supply with date and value.
Use SUMIFS to total turnover per quarter.
Apply your flat rate: =Quarter_turnover * Rate/100 — that's your CMP-08 tax.
Watch a running annual total against the limit so you know if you're about to cross it.

Quarterly tax  =SUMIFS(Value, Date, ">="&Q_start, Date, "<="&Q_end) * Rate/100
YTD turnover   =SUMIFS(Value, Date, ">="&FY_start, Date, "<="&Today)

How Ankeshan helps: Ankeshan issues a compliant Bill of Supply (no tax columns, declaration auto-added), totals your quarterly turnover, computes the flat-rate tax for CMP-08, and warns you as turnover nears the limit — inside Excel. It's launching soon; join the waitlist.

Frequently asked questions

Can a composition dealer charge GST? No. A composition dealer cannot collect GST from customers and must issue a Bill of Supply instead of a tax invoice.

What is a Bill of Supply? An invoice-like document with no GST columns, issued where tax cannot be charged — by composition dealers and for exempt supplies. It carries the composition declaration.

What rate does a composition dealer pay? 1% for manufacturers and traders, 5% for restaurants (non-alcohol), and 6% under the separate service-provider option — applied to turnover, not added to the bill.

Can a composition dealer claim Input Tax Credit? No. The trade-off for the low flat rate is that you cannot claim ITC on your purchases.

Which returns does a composition dealer file? CMP-08 quarterly (by the 18th of the month after the quarter) and GSTR-4 annually.

Sources

CGST Act, Section 10 and Section 10(2A); composition scheme rules — cbic-gst.gov.in.
CGST Rules: Bill of Supply particulars and mandatory declaration.
GSTN: CMP-08 and GSTR-4 — gst.gov.in.

General information, not professional advice. Verify on the official portal for your case. Reviewed by a Chartered Accountant; last updated 27 June 2026.