Following are the mistakes noted in the tax invoices issued by Jaipure Ltd., during the month of March, 2023: (i) Due to wrong HSN code being chosen while preparing invoice, an actual tax liability of ₹75,000 was mention

CS Professional · Advanced Tax Laws · PYQS · June 2023
Following are the mistakes noted in the tax invoices issued by Jaipure Ltd., during the month of March, 2023: (i) Due to wrong HSN code being chosen while preparing invoice, an actual tax liability of ₹75,000 was mentioned as ₹35,000 in the invoice. (ii) Due to a mistake in the no. of units taken while preparing an invoice, value charged in the invoice was ₹4,00,000 against the actual value of ₹5,20,000. With reference to the above mistakes, answer the following questions: (i) Who has to issue the Debit/Credit notes under the CGST Act?

Answer & Explanation:

(i) Who has to issue the Debit/Credit notes under the CGST Act? In both scenarios, the supplier, i.e., Jaipure Ltd. , has to issue the Debit/Credit Notes. Debit notes are issued when the taxable value or tax charged in the original invoice is less than the actual amount, while credit notes are issued when the taxable value or tax charged is more than the actual amount.

Topics: Goods and Services Tax (GST)

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