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CA Final · Indirect Tax Laws · Tax Invoice, Credit and Debit Notes

Deccan Engineering, a registered supplier, issued three invoices to Gupta Industries (registered) in FY 2025-26: INV/21 dated 5 June, INV/35 dated 12 July and INV/48 dated 3 September. All three were found to have been over-charged by a small amount. Which approach conforms to section 34 and Rule 53(1A)?

Deccan can issue one or more credit notes covering the invoices of the financial year, and each credit note must give the serial numbers and dates of the corresponding tax invoices together with value, tax rate and tax amount credited.

  1. AIssue one or more credit notes for supplies made in the financial year, each stating the serial numbers and dates of the corresponding tax invoices, value, rate of tax and tax amount creditedCorrect
  2. BIssue a separate credit note only per invoice; one credit note can never cover several invoices
  3. CIssue a revised tax invoice for each invoice under Rule 53(1) containing the word Revised Invoice
  4. DIssue a credit note without referring to any invoice, since particulars of invoices are not prescribed

Explanation

Section 34(1) allows one or more credit notes where one or more tax invoices have been issued, so a single credit note can cover several invoices. Rule 53(1A)(g) requires serial number(s) and date(s) of the corresponding invoices. Option B is wrong as consolidation is permitted.

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