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

Meera Exports, Chennai, a registered person, supplies goods to an unregistered individual consumer for Rs 1,500 (inclusive of tax) in a retail sale. Which statement about invoicing is correct?

A tax invoice must still be issued, since the supply is taxable and made by a registered person. For a B2C supply of small value, details of the unregistered recipient such as name and address need not be shown. A bill of supply is only for exempt supplies or composition dealers.

  1. AThe invoice for the unregistered consumer must be issued, though it may omit the recipient's details where value is below the prescribed limitCorrect
  2. BNo invoice is needed as the buyer is unregistered
  3. CThe invoice can be issued only after the buyer registers under GST
  4. DA bill of supply must be issued instead of a tax invoice, because the buyer is unregistered

Explanation

A registered supplier of taxable goods must issue a tax invoice even to unregistered buyers. For B2C invoices of Rs 50,000 or less, recipient name and address need not be stated. A bill of supply is for exempt supplies or composition suppliers, not based on buyer status.

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