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

Under a contract signed before the appointed day, Shree Engineering supplied machinery parts to Kaveri Industries. After the appointed day, the price was revised upwards by ₹2,00,000 on 5 August. Shree Engineering is a registered person. Which statement is correct as per the transitional provisions?

Shree must issue a supplementary invoice or debit note within thirty days of the price revision. It is deemed to have been issued in respect of an outward supply made under the GST Act, even though the contract predates the appointed day.

  1. AShree must issue a supplementary invoice or debit note within thirty days of 5 August, and it is deemed to be issued for an outward supply under the GST ActCorrect
  2. BShree may issue a debit note within sixty days of 5 August, and it is treated as a supply under the existing law
  3. CNo document is needed, because the contract was entered into before the appointed day
  4. DShree must issue the supplementary invoice within thirty days, but it is treated as a supply under the existing law

Explanation

For an upward price revision on or after the appointed day under a pre-appointed-day contract, the registered person shall issue a supplementary invoice or debit note within thirty days of the revision. It is deemed issued for an outward supply under the GST Act, not the existing law. Options B and D wrongly apply the existing law, and C ignores the mandatory issuance.

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