The correct answer is: A bill of supply can be issued in case of inter-State and intra-State supplies, except for exempted supplies.
Explanation:
A bill of supply is a document that is issued by a supplier to a customer to record the details of a supply of goods or services. It is a mandatory document under the Goods and Services Tax (GST) law.
A bill of supply must be issued for all supplies, except for exempted supplies. Exempted supplies are supplies that are not subject to GST.
The following are some examples of exempted supplies:
- Supplies of education and healthcare services
- Supplies of certain agricultural produce
- Supplies of certain religious services
If a supplier makes an exempted supply, they are not required to issue a bill of supply. However, they may choose to do so if they wish.
The following are some of the benefits of issuing a bill of supply:
- It helps to maintain records of supplies made by the supplier.
- It helps to track the movement of goods and services.
- It helps to prevent fraud and tax evasion.
- It helps to resolve disputes between suppliers and customers.
If you are a supplier, you should ensure that you issue a bill of supply for all supplies that you make, except for exempted supplies.