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CA Final · Indirect Tax Laws · Tax Invoice, Credit and Debit Notes

Narmada Agro Ltd received a demand where tax became payable under section 74, and it is issuing a document to the recipient for the tax so payable. Separately, Narmada, registered with effect from an earlier date than its registration certificate, wants to issue a revised tax invoice for supplies in the gap period. Which statement correctly follows from rule 53?

The invoice or debit note issued for tax payable under section 74, 129 or 130 must prominently contain the words 'INPUT TAX CREDIT NOT ADMISSIBLE', as required by rule 53(3). Revised invoices for the gap period are permitted, and consolidated ones are allowed for unregistered recipients.

  1. AAn invoice or debit note issued for tax payable under section 74, 129 or 130 must prominently carry the words 'INPUT TAX CREDIT NOT ADMISSIBLE'Correct
  2. BSuch an invoice or debit note must carry the words 'Revised Invoice' prominently
  3. CA registered person with retrospective registration cannot issue any revised tax invoice for the gap period
  4. DRevised invoices for unregistered recipients in the gap period must be issued separately for each supply, never consolidated

Explanation

Rule 53(3) requires an invoice or debit note issued for tax payable under section 74, 129 or 130 to prominently contain the words 'INPUT TAX CREDIT NOT ADMISSIBLE'. Rule 53(2) permits revised tax invoices for the gap period and its first proviso allows a consolidated revised invoice for unregistered recipients. The other options contradict this.

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