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

Under a contract entered into before the appointed day, Delta Engineering supplied goods to Mehra Ltd. After the appointed day, on 10 July, the price was revised upwards by Rs 50,000 by mutual agreement. By when must Delta issue the supplementary invoice or debit note, and how is it treated?

Delta must issue the supplementary invoice or debit note within thirty days of the price revision. For the purposes of the GST Act, the document is deemed to have been issued for an outward supply made under that Act.

  1. AWithin thirty days of the price revision, and it is deemed issued in respect of an outward supply made under the GST ActCorrect
  2. BWithin six months of the price revision, and it is treated as a supply under the existing law
  3. CWithin sixty days of the appointed day, and it is treated as a supply under the existing law
  4. DNo document is needed, because the contract was entered into before the appointed day

Explanation

For an upward price revision on or after the appointed day under a pre-appointed-day contract, the registered person must issue a supplementary invoice or debit note within thirty days of the price revision. It is deemed issued for an outward supply under the GST Act. The existing-law options are wrong because the deeming is under the GST Act.

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