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

Sundaram Textiles, Coimbatore, a registered supplier, supplies taxable goods to a registered buyer in Madurai on 10 June. Goods are removed on 10 June. Under the CGST Act and Rules, within what period must the tax invoice be issued for a supply of goods involving movement?

The tax invoice must be issued before or at the time of removal of the goods. Where goods move to the recipient, the invoicing deadline is tied to removal, not to a fixed 30-day period, which applies to services, or to receipt of payment.

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

Explanation

For a supply of goods involving movement, the invoice must be issued before or at the time of removal of goods. The 30-day limit applies to services, not goods, so the second option is wrong. Payment receipt does not determine the invoice date for goods.

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