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CS Executive · Tax Laws and Practice · Input Tax Credit and Computation of GST Liability

Which of the following is a condition of section 16(2) of the CGST Act, 2017 relating to the supplier's compliance?

The invoice details must have been furnished by the supplier in the statement of outward supplies and communicated to the recipient in the manner specified under section 37. This is clause (aa) of section 16(2). The Act sets no minimum registration period or turnover for the supplier.

  1. AThe supplier must have been registered for at least one year
  2. BThe supplier must have paid the tax through the electronic cash ledger only
  3. CThe details of the invoice must have been furnished by the supplier in the statement of outward supplies and communicated to the recipientCorrect
  4. DThe supplier must have a turnover above the composition threshold

Explanation

Clause (aa) of section 16(2) requires that the invoice or debit note details have been furnished by the supplier in the statement of outward supplies and communicated to the recipient under section 37. The section does not require a year of registration, payment only in cash, or a turnover threshold. Tax may be paid in cash or through admissible credit.

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