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

Rao Pharma Ltd obtained GST registration on 1 September 2024 with effect from 10 July 2024, because its liability arose earlier. The certificate was issued on 1 September 2024. For taxable supplies made from 10 July to 1 September 2024, which statement is correct under Rule 53(2)?

Rao Pharma may issue revised tax invoices for supplies from 10 July to 1 September 2024, and a consolidated revised tax invoice for supplies to unregistered recipients. Rule 53(2) and its first proviso allow this for the gap between the effective date and the certificate date.

  1. AIt may issue revised tax invoices for those supplies, and for unregistered recipients may issue a consolidated revised tax invoiceCorrect
  2. BIt must issue a credit note for every supply made in that period
  3. CIt cannot issue any document for that period
  4. DIt may issue a consolidated revised invoice only for registered recipients

Explanation

Rule 53(2) lets a person registered with retrospective effect issue revised tax invoices for supplies from the effective date of registration till the certificate was issued. The first proviso allows a consolidated revised tax invoice for all supplies to a recipient who is not registered. Registered recipients are not the subject of the consolidation proviso, so the last option is wrong. A credit note is not the prescribed document here.

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