GST Invoicing 4.4: 16 MCQs with answers

C · At the time of supply

Section 31 of the CGST Act, 2017 mandates that every registered person must issue a tax invoice at the time of supply.

D · On or before the date of removal of goods for delivery

As per GST law, for goods, the invoice should be issued on or before the date of removal of goods for delivery to the buyer.

B · 30 days

The service provider must issue the invoice within 30 days from the date of supply of services.

A · Intra-state supply of goods and services

CGST is the portion of GST that goes to the Central Government and is charged on intra-state supplies (within the same state).

C · Sale between different states

IGST (Integrated GST) is applied on inter-state supplies, i.e., when goods or services are sold from one state to another.

D · 15

GSTIN is a 15-digit PAN-based code assigned to every registered taxpayer under GST.

C · Services

SAC (Services Accounting Code) is used for services, while HSN is used for goods.

A · True

A GST-compliant invoice serves as evidence of a taxable transaction and is essential for claiming Input Tax Credit.

B · False

In inter-state supply, IGST is charged instead of CGST and SGST. CGST and SGST are applicable only for intra-state supplies.

A · 45 days

For supply to government departments or notified recipients, the time limit may extend up to 45 days.

C · On a periodic basis as per the contract

For continuous supply of services, invoices can be issued periodically based on the contract terms, such as due date of payment, receipt of payment, or completion of a milestone.

D · Signature of the buyer

A GST invoice requires the supplier's signature or digital signature, not the buyer's signature.

C · Rs 50,000 or more

For unregistered buyers, the invoice must include their name and address if the value is Rs 50,000 or more.

A · 9% CGST and 9% SGST

For intra-state supplies, the GST amount is divided equally between CGST and SGST. So 18% GST becomes 9% CGST and 9% SGST.

B · State code

The first two digits of GSTIN represent the state code. For example, '32' is the state code for Kerala.

A · Rs 5 crores

As per the source content, e-invoicing is mandatory for businesses with turnover exceeding Rs 5 crores.