Chapter 10

Question 1

Define tax invoice.

Answer 1

A document issued by a supplier to a buyer, detailing the sale and tax charged.

Question 2

True or false: A debit note increases the amount payable by the buyer.

Answer 2

TRUE

Debit notes are used to request additional payment for goods or services.

Question 3

Fill in the blank: A credit note is issued to _______ the amount payable.

Answer 3

reduce

Question 4

What is the time limit for filing the debit note to the government

Answer 4

There is no such time limit available buyer can anytime file the debit note to government and pay the gst but it includes the late fee

Question 5

True or false: A debit note can be issued without a prior invoice.

Answer 5

FALSE

Debit notes are typically related to existing invoices.

Question 6

What information must a tax invoice contain?

Answer 6

Supplier details, buyer details, description of goods, tax amount, and invoice date.

Question 7

Define credit note.

Answer 7

A document issued to a buyer to reduce the amount owed, usually due to returns.

Question 8

Dynamic QR code and its exemption

Answer 8

RP —Aggre. T. O from 2017-18—–exceeds ₹500 crore then Dynamic QR ccode required only for B2C supplies

And it’s exemptions are Insurance /Banking Comp/Finan.Insti/Passenger Transportation services/Exhibition of film in Multiplex/OIDAR(amazon, Netflix)

Question 9

E invoicing process

Answer 9

Reg supplier upload his tax invoice in Invoice Registration Portal and get Invoice Registration Number (IRN) +QR Code this QR only has details of tax invoice like who is supplier &recipient what goods @what rate also if soft copy or hardcopy of e invoice is enough rather than physical tax invoice

Question 10

True or false: A tax invoice must be issued for every sale.

Answer 10

TRUE

Tax invoices are mandatory for tax compliance in many jurisdictions.

Question 11

E-Invoice who needs to issue and exemption

Answer 11

Registered person RP —Aggre. T. O from 2017-18—–exceeds ₹5 crore then E Invoice required only for B2B supplies

And it’s exemptions are
Sez Units ((not for Sex Developers))
Insurance
/Banking Comp/Finan.Insti/Passenger Transportation services/GTA /
Exhibition of film in Multiplex/Local authority and government department

Question 12

Define debit note.

Answer 12

A document issued by a buyer to request an increase in the invoice amount.

Question 13

What is a reversal of entry in accounting?

Answer 13

An adjustment made to correct a previous entry, often using a debit or credit note.

Question 14

True or false: A credit note can be used to adjust a tax invoice.

Answer 14

TRUE

Credit notes adjust the tax liability on the original invoice.

Question 15

What must be included in a debit note?

Answer 15

Details of the original invoice, reason for the debit, and the amount to be increased.

Question 16

Fill in the blank: A credit note is often issued for _______ goods.

Answer 16

returned

Question 17

What is the effect of issuing a credit note on sales tax?

Answer 17

It reduces the sales tax liability for the supplier.

Question 18

Define GST compliance.

Answer 18

The adherence to GST laws, including proper invoicing and timely tax payments.

Question 19

True or false: A tax invoice is optional for B2B transactions.

Answer 19

FALSE

Tax invoices are mandatory for B2B transactions to claim input tax credit.

Question 20

Rule 55 Delivery challan what are the 4 reasons to issue

Answer 20

•Moving the goods for any reason other than supply
•Movement of goods for job work
•Supply of liquid gas were quantity not known
•Other supplies notified by board

Question 21

The time limit for declaring Credit notes in GST returns is

Answer 21

30th November following the end of F. Y (or)
Date of furnishing annual return

Whichever is earlier