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

Meridian Pharma Ltd had a contract entered into before the appointed day. It supplied services under the contract after the appointed day, and the contract price was later revised upwards. Also, for a particular supply, tax was paid both under the State VAT Act and under Chapter V of the Finance Act, 1994 (service tax). Which combination is correct under the transitional provisions?

A supplementary invoice or debit note must be issued within thirty days of the upward revision. For a supply taxed under both VAT and service tax, GST is leviable and credit of the VAT or service tax paid is allowed for supplies made after the appointed day, as prescribed.

1. AA supplementary invoice or debit note must be issued within thirty days of the price revision; for the dual-taxed supply, tax is leviable under the CGST Act and credit of VAT or service tax paid is allowed to the extent of supplies made after the appointed day, calculated as prescribedCorrect
2. BA debit note may be issued at any time; for the dual-taxed supply, no GST is payable at all
3. CA supplementary invoice must be issued within sixty days; for the dual-taxed supply, GST is payable but no credit is allowed
4. DA debit note is not required because the contract pre-dates the appointed day; for the dual-taxed supply, tax is payable only to the extent of VAT