Taxation - GST Ch 09: Invoicing Ewaybill - Test 1: answer key

Question 1 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

Scenario. Vikramaditya Tech Labs LLP is registered in Karnataka and supplies hardware and IT maintenance services. It became liable to GST registration on 7 August 2026, applied on 28 August 2026 and received the registration certificate on 5 September 2026. During 7 August to 5 September 2026, it made taxable intra-State B2C supplies to unregistered customers, each invoice being below ₹2,50,000. On 18 September 2026, it removed customized servers from its Bengaluru warehouse for delivery to Aryan Steels Ltd, Pune, on 22 September 2026; the tax invoice was dated 25 September 2026. Under an annual maintenance contract with Nandini Retail Pvt Ltd, services for September 2026 were provided throughout the month; the contract fixes payment due on 10 October 2026 and requires an invoice accordingly. On 12 October 2026, it completed a one-time cybersecurity service for Suraksha General Insurance Co Ltd; the invoice was issued on 25 November 2026. On 5 August 2026, it received ₹2,36,000 as advance from a customer for a customized server; at receipt, the applicable GST rate and whether the supply was intra-State or inter-State were not determinable, and no supply had been made by 31 October 2026. The LLP uses its own ERP and is not a notified e-invoicing person. All amounts are inclusive of GST where stated.

For the customized servers removed on 18 September 2026 and delivered on 22 September 2026, by which date should Vikramaditya Tech Labs LLP have issued the tax invoice?

1. 18 September 2026, because invoice must be issued before or at the time of removal of goods. (correct answer)
2. 22 September 2026, because invoice can be issued when goods are delivered to the recipient.
3. 25 September 2026, because invoice dated on actual issue is valid if delivery occurred within seven days.
4. 30 September 2026, because a 12-day grace period applies to inter-State movement of goods.

Answer: A — 18 September 2026, because invoice must be issued before or at the time of removal of goods.

Explanation. For taxable goods where supply involves movement, section 31(1)(a) requires a tax invoice before or at the time of removal of goods for supply to the recipient. Delivery on 22 September does not extend the deadline. The invoice dated 25 September is late. The relevant event is removal from the warehouse on 18 September 2026, so the invoice should have been issued on or before that date.

Where it goes wrong. Students often use the delivery date or the date of actual invoice issue instead of the removal date.

Authority. Section 31(1) of the CGST Act, 2017

Question 2 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

For September 2026 maintenance services under the annual contract with Nandini Retail Pvt Ltd, what is the due date for issuing the tax invoice?

1. On or before 30 September 2026, since services were supplied in September.
2. On or before 10 October 2026, since the contract fixes that due date of payment. (correct answer)
3. On or before 9 October 2026, since invoice must precede the payment date by one day.
4. On or before 30 October 2026, since 30 days are allowed from the due date of payment.

Answer: B — On or before 10 October 2026, since the contract fixes that due date of payment.

Explanation. This is continuous supply of services. Where the due date of payment is ascertainable from the contract, section 31(5)(a) requires the invoice on or before that due date. The contract fixes 10 October 2026 as the payment due date for September services. Therefore, the invoice must be issued on or before 10 October 2026, not merely by month-end or after 30 days from payment.

Where it goes wrong. Students apply the general 30-day service limit instead of the specific continuous-supply rule.

Authority. Section 31(5)(a) of the CGST Act, 2017

Question 3 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

For the cybersecurity service completed for Suraksha General Insurance Co Ltd on 12 October 2026, is the invoice issued on 25 November 2026 within the prescribed time?

1. No; invoice was due by 11 October 2026 because insurance services must be invoiced before supply.
2. No; invoice was due by 11 November 2026, being 30 days from date of supply.
3. Yes; invoice issued on 25 November 2026 is within 45 days from 12 October 2026. (correct answer)
4. Yes; invoice can be issued anytime before the insurer files its annual return for FY 2026-27.

Answer: C — Yes; invoice issued on 25 November 2026 is within 45 days from 12 October 2026.

Explanation. For taxable services, the invoice is generally due within 30 days from the date of supply. For an insurer, banking company or financial institution including NBFC, rule 47 allows 45 days. Counting 45 days from 12 October 2026 gives 26 November 2026. The invoice dated 25 November 2026 is therefore within the permitted period. The 30-day general limit does not apply to this insurer.

Where it goes wrong. Students use the 30-day limit and ignore the 45-day relaxation for insurers and banks.

Authority. Section 31(2) of the CGST Act, 2017; Rule 47 of the CGST Rules, 2017

Question 4 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

For supplies made between the effective date of registration and the issue of the registration certificate, what is the last date and manner for issuing revised tax invoices?

1. By 7 September 2026; each B2C recipient must receive a separate revised invoice.
2. By 5 October 2026; only recipient-wise revised invoices are permitted for B2C supplies.
3. By 5 November 2026; revised invoices can be issued within two months of certificate.
4. By 5 October 2026; a consolidated revised invoice may cover all intra-State B2C supplies. (correct answer)

Answer: D — By 5 October 2026; a consolidated revised invoice may cover all intra-State B2C supplies.

Explanation. Revised tax invoices must be issued within one month from the date of issue of the registration certificate. The certificate was issued on 5 September 2026, so the last date is 5 October 2026. For intra-State B2C supplies, a single consolidated revised invoice may cover all such supplies irrespective of individual invoice value. Separate recipient-wise invoices are not required for intra-State B2C supplies.

Where it goes wrong. Students count one month from the effective registration date or assume every B2C customer needs a separate revised invoice.

Authority. Section 31(3)(a) of the CGST Act, 2017; Rule 53 of the CGST Rules, 2017

Question 5 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

Scenario. Aryan Steels Ltd has PAN-based aggregate turnover of ₹5.40 crore in FY 2025-26 across two GSTINs: Maharashtra unit ₹4.10 crore and Karnataka trading unit ₹1.30 crore. In September 2026 it makes: (i) B2B supply to a registered dealer in Gujarat; (ii) B2C supply to an unregistered customer in Maharashtra; (iii) export of goods to UAE; and (iv) supply to an SEZ unit in Karnataka. Its associate Aryan SEZ Developers Ltd is an SEZ developer with turnover ₹6.10 crore and makes B2B supplies to registered persons. Suraksha General Insurance Co Ltd has turnover ₹850 crore and issues policies to B2C and B2B customers; it also supplies some taxable goods. Metroplex Cinemas Pvt Ltd has turnover ₹620 crore from admission to cinematograph films in multiplex screens and issues B2C tickets. Nandini Travels is a GTA with turnover ₹6.40 crore transporting goods by road in a goods carriage for registered clients. All entities use ERP; no entity is an ISD. For September 2026, determine e-invoice and dynamic QR obligations.

Which September 2026 supplies of Aryan Steels Ltd require e-invoicing?

1. B2B supply to Gujarat, export to UAE and supply to SEZ unit; not the B2C supply. (correct answer)
2. B2B supply to Gujarat and B2C supply; export and SEZ supply are outside e-invoicing.
3. Only export to UAE; domestic B2B and SEZ supplies are exempt from e-invoicing.
4. All four supplies; e-invoicing applies to every supply once turnover exceeds ₹5 crore.

Answer: A — B2B supply to Gujarat, export to UAE and supply to SEZ unit; not the B2C supply.

Explanation. A registered person with aggregate turnover above ₹5 crore in any preceding financial year from 2017-18 onwards is a notified person for e-invoicing. E-invoices apply to B2B supplies and exports. Supply to an SEZ unit is treated as B2B and is covered. B2C supplies are not presently covered. Hence the B2B Gujarat supply, export and SEZ unit supply require e-invoicing, but the B2C supply does not.

Where it goes wrong. Students assume e-invoicing covers B2C supplies or excludes supplies to SEZ units.

Authority. Rule 48(4) of the CGST Rules, 2017; Notification No. 13/2020-Central Tax

Question 6 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

Is Aryan SEZ Developers Ltd required to issue e-invoices for its B2B supplies in September 2026?

1. No; every entity with 'SEZ' in its name is exempt from e-invoicing.
2. Yes; an SEZ developer is not exempt though an SEZ unit is exempt from e-invoicing. (correct answer)
3. No; e-invoicing applies only to SEZ units and not to any developer or DTA unit.
4. Yes; e-invoicing is mandatory even for B2C supplies made by an SEZ developer.

Answer: B — Yes; an SEZ developer is not exempt though an SEZ unit is exempt from e-invoicing.

Explanation. The exemption from mandatory e-invoicing covers SEZ units, not SEZ developers. Aryan SEZ Developers Ltd has turnover above ₹5 crore and makes B2B supplies to registered persons. Therefore, it is a notified person and must issue e-invoices. The common trap is to read 'SEZ' broadly; the notification specifically says SEZ unit and does not extend the exemption to developers.

Where it goes wrong. Students treat an SEZ developer at par with an SEZ unit.

Authority. Rule 48(4) of the CGST Rules, 2017; Notification No. 13/2020-Central Tax

Question 7 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

What is Suraksha General Insurance Co Ltd's e-invoicing position for September 2026?

1. It must issue e-invoices for B2B policies but not for B2C policies due to turnover.
2. It must issue e-invoices for all policies because turnover exceeds ₹500 crore.
3. It is exempt from e-invoicing for all supplies and should give the prescribed declaration. (correct answer)
4. It is exempt only for B2C policies; B2B policies require e-invoice with IRN.

Answer: C — It is exempt from e-invoicing for all supplies and should give the prescribed declaration.

Explanation. An insurer or banking company or financial institution including NBFC is exempt from the mandatory requirement of e-invoicing. The exemption applies to the entity as a whole and is not restricted by the nature of supply. Even if turnover exceeds ₹5 crore, Suraksha General Insurance Co Ltd need not issue e-invoices. Where it issues an invoice otherwise than under rule 48(4), the prescribed declaration is required.

Where it goes wrong. Students apply the ₹5 crore e-invoice threshold without checking the insurer exemption.

Authority. Rule 48(4) of the CGST Rules, 2017; Notification No. 13/2020-Central Tax

Question 8 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

For Metroplex Cinemas Pvt Ltd's multiplex admission tickets in September 2026, which statement is correct?

1. E-invoice is required because turnover exceeds ₹5 crore; dynamic QR is also required.
2. E-invoice is not required; dynamic QR is required because turnover exceeds ₹500 crore.
3. E-invoice is required only for B2B tickets; dynamic QR is not required for B2C.
4. Neither e-invoice nor dynamic QR is required for its multiplex admission tickets. (correct answer)

Answer: D — Neither e-invoice nor dynamic QR is required for its multiplex admission tickets.

Explanation. A person supplying services by way of admission to exhibition of cinematograph films in multiplex screens is exempt from mandatory e-invoicing. Such a supplier is also among the exceptions to the dynamic QR code requirement for B2C invoices. Therefore, despite turnover above ₹5 crore and ₹500 crore, Metroplex Cinemas is not required to issue e-invoices or dynamic QR codes for its multiplex admission tickets.

Where it goes wrong. Students apply the high turnover thresholds without checking the multiplex-specific exemptions.

Authority. Rule 48(4) of the CGST Rules, 2017; Sixth proviso to rule 46 of the CGST Rules, 2017

Question 9 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

Chidanand Products Pvt Ltd has opted for composition levy. It makes an intra-State supply of ₹185 to an unregistered customer who does not require a bill of supply. What is the correct treatment?

1. It may not issue a bill for ₹185 and may issue a consolidated bill at day-end. (correct answer)
2. It must issue a tax invoice for ₹185 because composition dealers cannot consolidate.
3. It must issue a bill of supply for each ₹185 transaction irrespective of demand.
4. It may omit the bill only if the customer is registered and value is below ₹200.

Answer: A — It may not issue a bill for ₹185 and may issue a consolidated bill at day-end.

Explanation. A registered person may not issue a tax invoice or bill of supply if the value is below ₹200, the recipient is unregistered and the recipient does not require the document. A consolidated bill of supply must be issued at the close of each day for such supplies. The multiplex admission exception is not applicable. Composition dealers issue a bill of supply, but the below-₹200 relaxation applies to such bills also.

Where it goes wrong. Students think a composition dealer must always issue a separate bill of supply for every small sale.

Authority. Section 31(3)(b) of the CGST Act, 2017; Section 31(3)(c) of the CGST Act, 2017

Question 10 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

Nandini Real Estates Pvt Ltd, a registered person, supplies taxable goods and exempt goods in one transaction to an unregistered customer. Which document may it issue?

1. Separate tax invoice and bill of supply are mandatory for every unregistered recipient.
2. A single invoice-cum-bill of supply may be issued under rule 46A. (correct answer)
3. Only a bill of supply can be issued; taxable supplies cannot be included.
4. A single document is allowed only if all supplies are exempt.

Answer: B — A single invoice-cum-bill of supply may be issued under rule 46A.

Explanation. Rule 46A permits a registered person supplying taxable as well as exempt goods or services to an unregistered person to issue a single invoice-cum-bill of supply. It contains the particulars required for a tax invoice and a bill of supply. Separate documents are not mandatory. The facility is not limited to wholly exempt supplies.

Where it goes wrong. Students assume taxable and exempt supplies to an unregistered person always require separate documents.

Authority. Rule 46A of the CGST Rules, 2017

Question 11 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

Smt. Anuradha Sen receives ₹1,18,000 as advance for a future supply. At receipt, the GST rate is not determinable and the nature of supply is not determinable. What tax treatment is correct in the receipt voucher?

1. 5% as intra-State; tax ₹5,619 on inclusive value.
2. 18% as intra-State; tax ₹18,000 on taxable value ₹1,00,000.
3. 18% as inter-State; tax ₹18,000 on taxable value ₹1,00,000. (correct answer)
4. Nil; tax arises only when invoice is issued after supply.

Answer: C — 18% as inter-State; tax ₹18,000 on taxable value ₹1,00,000.

Explanation. On receipt of advance, a receipt voucher is required. Where the rate is not determinable, tax is paid at 18%. Where the nature of supply is not determinable, it is treated as inter-State supply. On ₹1,18,000 inclusive of 18% GST, taxable value is ₹1,00,000 and tax is ₹18,000. Hence the receipt voucher must reflect 18% as inter-State tax, not intra-State or nil.

Where it goes wrong. Students treat indeterminate nature as intra-State or wait for the final invoice.

Authority. Section 31(3)(d) of the CGST Act, 2017; Rule 50 of the CGST Rules, 2017

Question 12 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A registered supplier issued a receipt voucher for an advance but subsequently no supply is made and no tax invoice is issued. What document may the supplier issue against the advance?

1. Credit note under section 34 is the only permitted document for the refund.
2. No document is needed; the receipt voucher automatically lapses after 30 days.
3. A revised tax invoice must be issued cancelling the original receipt voucher.
4. A refund voucher may be issued against the advance and receipt voucher. (correct answer)

Answer: D — A refund voucher may be issued against the advance and receipt voucher.

Explanation. Where a receipt voucher was issued for an advance but no supply is made and no tax invoice follows, section 31(3)(e) permits the registered person to issue a refund voucher to the person who made the payment. It is not a credit note, revised invoice or automatic lapse. The refund voucher evidences the refund against the advance and earlier receipt voucher.

Where it goes wrong. Students confuse refund voucher with credit note or assume no document is required.

Authority. Section 31(3)(e) of the CGST Act, 2017; Rule 51 of the CGST Rules, 2017

Question 13 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A registered person got registration effective from 12 June 2026 and certificate on 8 July 2026. It made inter-State B2C supplies to unregistered customers: 12 supplies to Uttar Pradesh each ₹40,000; one supply to Bihar ₹3,20,000; and intra-State supplies including one of ₹4,50,000. How should revised invoices be issued?

1. UP state-wise consolidated; Bihar recipient-wise; one consolidated for intra-State. (correct answer)
2. UP recipient-wise; Bihar state-wise; separate invoices for each intra-State supply.
3. One all-India consolidated invoice covering UP, Bihar and Rajasthan supplies.
4. Only recipient-wise invoices for all supplies, since consolidated revised invoices are barred.

Answer: A — UP state-wise consolidated; Bihar recipient-wise; one consolidated for intra-State.

Explanation. For inter-State B2C supplies up to ₹2,50,000, a State-wise consolidated revised invoice is permitted. The 12 UP supplies are each below ₹2,50,000, so one UP consolidated invoice is allowed. The Bihar supply exceeds ₹2,50,000, so a recipient-wise revised invoice is required. For intra-State B2C supplies, one consolidated revised invoice may cover all supplies irrespective of amount.

Where it goes wrong. Students club the high-value Bihar supply in State-wise consolidation or ignore intra-State consolidation.

Authority. Section 31(3)(a) of the CGST Act, 2017; Rule 53 of the CGST Rules, 2017

Question 14 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

Aakash Digital Solutions contracted for a two-month website project worth ₹18 lakh, to be billed on completion. After 40 days, the contract is terminated on 15 September 2026 with work completed valued at ₹10 lakh. When and for what amount must the invoice be issued?

1. On 31 October 2026 for ₹18 lakh, since original contract value must be invoiced.
2. On 15 September 2026 for ₹10 lakh, the value of work completed till cessation. (correct answer)
3. On 15 September 2026 for ₹18 lakh, because contract is terminated by mutual consent.
4. Within 30 days of cessation for ₹10 lakh, as services are continuous.

Answer: B — On 15 September 2026 for ₹10 lakh, the value of work completed till cessation.

Explanation. Where supply of services ceases before completion, section 31(6) requires the invoice at the time when supply ceases and only to the extent of supply made before cessation. The cessation date is 15 September 2026 and completed work is ₹10 lakh. The invoice is therefore due on 15 September for ₹10 lakh, not the full contract value or after 30 days.

Where it goes wrong. Students invoice the full contract value or apply the ordinary 30-day service deadline.

Authority. Section 31(6) of the CGST Act, 2017

Question 15 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

Kavita Furnishings sends 20 chairs on sale-or-return basis on 5 April 2026. On 20 July 2026, the customer confirms retention of 15 chairs; the remaining 5 remain undecided. What are the invoice dates?

1. All 20 chairs by 20 July 2026, when approval is communicated for 15 chairs.
2. 15 chairs by 5 October 2026 and 5 chairs by 20 July 2026, whichever is earlier.
3. 15 chairs by 20 July 2026 and remaining 5 chairs on 5 October 2026. (correct answer)
4. All 20 chairs by 5 April 2027, being 12 months from removal on sale-or-return.

Answer: C — 15 chairs by 20 July 2026 and remaining 5 chairs on 5 October 2026.

Explanation. For goods sent on approval for sale or return, the invoice is due before or at the time of supply or six months from removal, whichever is earlier. For the 15 accepted chairs, supply occurs on 20 July 2026, so invoice is due by then. For the 5 unaccepted chairs, six months from 5 April 2026 ends on 5 October 2026, so invoice is due on that date.

Where it goes wrong. Students use a single date for all goods or apply 12 months instead of six months.

Authority. Section 31(7) of the CGST Act, 2017

Question 16 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

Bhoj Raj, a registered person, availed GTA services on 18 August 2026 from an unregistered supplier and is liable to pay GST under reverse charge. By when must Bhoj Raj issue the invoice?

1. No invoice; the unregistered GTA must issue a bill of supply.
2. Invoice by 17 September 2026 only if GST rate is determinable on 18 August.
3. Invoice by 30 September 2026, being 30 days from end of month of receipt.
4. Invoice by 17 September 2026, within 30 days from receipt of GTA service. (correct answer)

Answer: D — Invoice by 17 September 2026, within 30 days from receipt of GTA service.

Explanation. Where a registered recipient is liable under reverse charge and receives supply from an unregistered supplier, the recipient must issue an invoice. Rule 47A prescribes 30 days from the date of receipt of the supply. Counting from 18 August 2026 gives 17 September 2026. The unregistered GTA need not issue a tax invoice to shift the obligation.

Where it goes wrong. Students assume the unregistered supplier must issue the invoice or count from month-end.

Authority. Section 31(3)(f) of the CGST Act, 2017; Rule 47A of the CGST Rules, 2017

Question 17 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

Which statement about documents in lieu of a tax invoice is correct?

1. A GTA may issue a consignment note containing prescribed particulars in lieu of tax invoice. (correct answer)
2. A GTA must always issue a tax invoice and cannot use any other document.
3. A bank cannot issue a consolidated statement; it must issue serially numbered invoices.
4. A passenger transport ticket is never deemed a tax invoice under GST.

Answer: A — A GTA may issue a consignment note containing prescribed particulars in lieu of tax invoice.

Explanation. Rule 54 permits specified suppliers to issue other documents in lieu of tax invoice. A GTA supplying road goods transport may issue a consignment note with prescribed particulars such as gross weight, consignor, consignee, vehicle number, goods details, origin and destination. Banks and insurers may issue consolidated statements or advices. Passenger transport tickets can be deemed tax invoices.

Where it goes wrong. Students overgeneralise the tax invoice requirement and ignore rule 54 exceptions.

Authority. Section 31(2) of the CGST Act, 2017; Rule 54 of the CGST Rules, 2017

Question 18 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

M/s Vinit Textile Ltd has aggregate turnover of ₹5.95 crore in FY 2024-25 and supplies taxable goods to registered and unregistered persons. How many HSN digits must it mention on tax invoices in FY 2026-27?

1. 4 digits for B2B and optional 4 digits for B2C.
2. 6 digits for both B2B and B2C supplies. (correct answer)
3. 4 digits for B2B and 6 digits for B2C supplies.
4. 6 digits for B2B and 4 digits for B2C supplies.

Answer: B — 6 digits for both B2B and B2C supplies.

Explanation. For a registered person with aggregate turnover above ₹5 crore in the preceding financial year, six digits of HSN are required for both B2B and B2C supplies. The 4-digit requirement applies where turnover is up to ₹5 crore, with B2C optional. Vinit Textile's turnover is ₹5.95 crore, so the higher 6-digit requirement applies across both categories.

Where it goes wrong. Students apply the 4-digit B2B threshold even after turnover crosses ₹5 crore.

Authority. Rule 46 of the CGST Rules, 2017; Notification No. 12/2017-Central Tax

Question 19 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A notified person generated an e-invoice with IRN and QR code for a goods consignment. The transporter asks for a paper tax invoice and triplicate copies. Which statement is correct?

1. Physical tax invoice must be carried even when e-invoice with IRN was generated.
2. Triplicate copies are mandatory for goods despite e-invoice generation.
3. QR code with embedded IRN produced electronically suffices; triplicate not needed. (correct answer)
4. E-invoice is invalid unless a signed paper copy is also issued to transporter.

Answer: C — QR code with embedded IRN produced electronically suffices; triplicate not needed.

Explanation. Where e-invoicing applies, there is no need to issue invoice copies in triplicate or duplicate. CBIC has clarified that carrying a physical copy of the tax invoice is not required where e-invoice is generated. Producing the QR code with embedded IRN electronically for checking by the proper officer suffices. A signed paper copy is not a condition for validity.

Where it goes wrong. Students carry forward the ordinary triplicate/duplicate rule even for e-invoices.

Authority. Rule 48(4) of the CGST Rules, 2017; CBIC clarification on e-invoice

Question 20 · 2 marks · Taxation - GST Ch 09: Invoicing Ewaybill · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

Nandini Retail Ltd has aggregate turnover of ₹520 crore in FY 2025-26 and issues B2C invoices to unregistered customers in FY 2026-27. What is its dynamic QR code obligation?

1. Dynamic QR is required only for B2B invoices once turnover exceeds ₹5 crore.
2. Dynamic QR is optional for B2C invoices irrespective of aggregate turnover.
3. Dynamic QR applies only if turnover exceeds ₹500 crore and supply is export.
4. Dynamic QR is required on B2C invoices as turnover exceeds ₹500 crore. (correct answer)

Answer: D — Dynamic QR is required on B2C invoices as turnover exceeds ₹500 crore.

Explanation. A registered person with aggregate turnover above ₹500 crore in any preceding financial year from 2017-18 onwards must have a dynamic QR code on B2C invoices, subject to specified exceptions. Nandini Retail Ltd's turnover is ₹520 crore, so the requirement applies. This is separate from B2B e-invoicing and is not limited to exports.

Where it goes wrong. Students confuse the ₹5 crore e-invoice threshold with the ₹500 crore dynamic QR threshold.

Authority. Sixth proviso to rule 46 of the CGST Rules, 2017; Notification on dynamic QR code