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

Kumar Enterprises, a registered supplier, supplies exempt goods and taxable goods in the same transaction to an unregistered customer for Rs 10,000 total. Which document must Kumar issue for this supply?

Kumar may issue a single invoice-cum-bill of supply covering both the taxable and exempt goods supplied to the unregistered customer. A debit note only increases the taxable value or tax of an earlier invoice, and a delivery challan is not an invoice.

  1. ASeparate tax invoice for each good only
  2. BA single invoice-cum-bill of supplyCorrect
  3. COnly a delivery challan
  4. DA debit note

Explanation

Where a registered person supplies both taxable and exempt goods or services to an unregistered person, a single invoice-cum-bill of supply may be issued for all such supplies. A debit note is issued only to increase value, which is not the case.

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