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

Mehta Textiles Pvt Ltd, Surat, is registered under GST and supplies only taxable goods. On 10 June it delivered goods to a buyer in Pune under a contract where the supplier was to receive payment in instalments, with the goods sent in one lot. Under the CGST Act, within what time must the tax invoice be issued for a supply of goods that involves movement of goods?

The tax invoice must be issued before or at the time of removal of the goods for a supply involving movement of goods. The 30-day period applies to services, and payment instalments do not shift the invoicing time for goods delivered in one lot.

  1. ABefore or at the time of removal of goods for supply to the recipientCorrect
  2. BWithin 30 days from the date of supply
  3. CWithin 45 days from the date of supply
  4. DAt the time of receipt of the final instalment

Explanation

For a supply of goods requiring movement, the invoice must be issued before or at the time of removal of the goods. The 30-day limit applies to services, not goods. Instalment timing is not relevant when goods are delivered in one lot.

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