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CMA Intermediate · Direct and Indirect Taxation · Tax Invoice - Electronic Way Bill

Under Section 16 of the CGST Act, 2017, a registered person can claim input tax credit on a supply only if he holds a specified document issued by a registered supplier. Which of the following documents, as named in that section, is acceptable for this purpose?

The recipient must hold a tax invoice or a debit note issued by a supplier registered under the Act, or other prescribed tax paying documents. Credit notes and delivery challans are not named in the clause as documents for taking input tax credit.

  1. AA bill of supply issued by a composition supplier
  2. BA tax invoice or a debit note issued by a supplier registered under the ActCorrect
  3. CA credit note issued by the supplier
  4. DA delivery challan issued by the supplier

Explanation

Section 16(2)(a) requires possession of a tax invoice or debit note issued by a registered supplier, or other prescribed tax paying documents. A credit note is not named as a document for taking credit; it reduces the value or tax on an earlier supply. A challan and a bill of supply are not named in that clause.

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