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CS Executive · Tax Laws and Practice · Concept of Indirect Taxes at a Glance

For transitional credit on inputs held in stock under section 140(3) of the CGST Act, 2017, the invoices or other documents evidencing payment of duty must have been issued within what period before the appointed day?

The invoices or prescribed documents must be issued not earlier than twelve months immediately preceding the appointed day. The six-month period belongs to the returns condition in sub-section (1), and the thirty-day period to recording invoices under sub-section (5).

  1. ANot earlier than six months immediately preceding the appointed day
  2. BNot earlier than twelve months immediately preceding the appointed dayCorrect
  3. CNot earlier than twenty-four months immediately preceding the appointed day
  4. DNot earlier than thirty days immediately preceding the appointed day

Explanation

Section 140(3)(iv) requires invoices or prescribed documents issued not earlier than twelve months immediately preceding the appointed day. Six months relates to the return-filing condition in sub-section (1), and thirty days relates to recording invoices under sub-section (5).

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