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CA Intermediate · Taxation · Tax Invoice; Credit and Debit Notes

Kaveri Consultants, a registered service provider in Chennai, provided consultancy services on 5 March. It is not an insurer, banking company or financial institution. Under the CGST Act, what is the latest date by which it must issue the tax invoice?

The latest date is 4 April. For a normal service provider, the tax invoice must be issued within 30 days from the date of supply. Counting 30 days from 5 March gives 4 April, so a later date would breach the time limit.

  1. A4 AprilCorrect
  2. B19 March
  3. C5 April
  4. DThe invoice can be issued at the time of payment, whenever received

Explanation

For ordinary services the invoice must be issued within 30 days from the date of supply. 5 March plus 30 days: 26 days remain in March (to 31 March), then 4 more days gives 4 April. 5 April would be 31 days, which is wrong.

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