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CA Final · Indirect Tax Laws · Miscellaneous Provisions (GST)

Kapoor Textiles, a registered person, supplied fabric to Anand Garments under a contract entered into before the appointed day. After the appointed day, the contract price for goods supplied was revised upwards by Rs 50,000. Under the transitional provisions, what must Kapoor Textiles do?

Kapoor Textiles must issue a supplementary invoice or debit note within thirty days of the price revision. It is deemed to be issued for an outward supply under the GST Act. The thirty days run from the revision date, not the appointed day, and the contract's earlier date does not exempt it.

  1. AIssue a supplementary invoice or debit note within thirty days of the price revision, deemed to be an outward supply under this ActCorrect
  2. BIssue a supplementary invoice within sixty days of the price revision
  3. CDo nothing, since the contract was entered into before the appointed day
  4. DIssue a supplementary invoice within thirty days of the appointed day

Explanation

For an upward price revision on or after the appointed day under a pre-appointed-day contract, the supplier shall issue a supplementary invoice or debit note within thirty days of the price revision. It is deemed issued for an outward supply under the Act. The period runs from the price revision, not from the appointed day.

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