GST invoices for medical stores: Tax Invoice or Bill of Supply?
Which invoice should your pharmacy print? A plain guide to Tax Invoice vs Bill of Supply, HSN codes, CGST/SGST, credit notes and paper sizes. Confirm details with your CA.
By Med Dukaan TeamUpdated 3 min read
A medical store with regular GST registration usually prints a Tax Invoice showing HSN codes and the GST split; a store under the composition scheme or not registered for GST usually prints a Bill of Supply without charging GST. The right one depends on your registration, so set it once in your software and confirm the format with your CA.
This article is general information to help you talk to your CA and set up your software. It is not tax advice.
Key takeaways
- Your GST registration decides the invoice type, not your preference.
- Tax Invoices show HSN, taxable value and CGST/SGST (or IGST) per line.
- Take the HSN and GST rate from the supplier's purchase bill; do not guess.
- Returns need credit notes with their own numbers.
- Keep invoice numbers gap-free for each financial year.
What is the difference between a Tax Invoice and a Bill of Supply?
| Tax Invoice | Bill of Supply | |
|---|---|---|
| Usually used by | Regular GST registered stores | Composition scheme or unregistered stores |
| Shows GST charged | Yes, per line | No GST charged to the customer |
| HSN codes | Yes | As required for your case |
| Tax split | CGST + SGST, or IGST | Not shown |
Medicines and other products carry different GST rates, so a Tax Invoice shows the rate on each line rather than one rate for the whole bill.
How does Med Dukaan choose the invoice?
In store setup you choose your GST registration type. Med Dukaan then prints the matching document automatically: a Tax Invoice with HSN and tax breakup for regular stores, and a Bill of Supply for the others. Invoice numbers are gap-free for each financial year.
Where should HSN codes and GST rates come from?
From the supplier's purchase bill. When you add a medicine, copy the HSN and GST rate from that bill. Med Dukaan does not guess tax details; verified entries in the shared medicine list can fill them in, and you can always correct them.
How are returns handled?
When a customer returns medicine, Med Dukaan issues a credit note with its own number and puts the stock back into the same batch. Your GST records and your stock stay in step.
Which paper size should you use?
- Thermal: fast for a busy counter.
- A5: compact but complete.
- A4: for customers who need a full invoice, for example for reimbursement.
All three print from the same bill.
A short checklist to review with your CA
- Your registration type and the invoice it requires.
- The details that must appear on your invoice (store name, address, GSTIN where applicable, licence details).
- How you record credit notes for returns.
- How invoice numbering restarts each financial year.
Illustrative example
Fictional example. A newly registered store switches from a Bill of Supply to a Tax Invoice after its GST registration changes. The owner updates the registration type in store setup, checks one sample A4 invoice with their CA, and from the next bill onward every invoice shows HSN and CGST/SGST per line.
Common mistakes
- Using one GST rate for every item.
- Copying HSN codes from memory instead of the purchase bill.
- Editing old invoices instead of issuing credit notes.
Med Dukaan prints GST invoices from the same billing counter you use every day. See pricing or contact us.
Frequently asked questions
Should a pharmacy print a Tax Invoice or a Bill of Supply?
It depends on GST registration: regular registered stores usually print a Tax Invoice; composition or unregistered stores usually print a Bill of Supply. Confirm with your CA.
Does Med Dukaan decide my GST rate?
No. You choose the GST rate and HSN from your purchase bill. Verified medicine list entries can fill them in.
How are pharmacy returns recorded for GST?
With a credit note that has its own number. Med Dukaan issues it and puts the stock back into the same batch.
Can I print GST invoices on a thermal printer?
Yes. Invoices print on thermal, A5 and A4 paper.
- #GST
- #invoice
- #compliance
Product team, Appluk Private Limited
The people who build Med Dukaan, pharmacy software for Indian medical stores. We write about how the software works and how stores use it day to day.
