supplementary invoice

[Asked by Guest]

When supplementary invoice can be issued ...

[YAGAY and SUN]

Dear Dipneet,

Whenever there is any change in price, rate or value of the Capital goods, raw material, components, inputs or input services retrospectively, then, supplementary invoices can be issued.

Further, ss per the settled legal position, differential duty should be paid along with the interest at applicable rate.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

[Mahir S]

Yes, and also for price variation of the finished goods already cleared.

In such cases, is it mandatory to do such change in rate under a supplementary invoice.or if we can do such change in rate with a debit note containing the differential rate (with or without excise duty) .

One thing is clear, that differential duty plus interest has to be paid along with it.

[Mahir S]

It is always advisable that supplementary Invoices are issued, the reason being that the consignee can avail cenvat credit on the duty paid thereon.

AI Summary

Supplementary invoice issuance advised when retrospective price changes require payment of differential duty and interest.
Supplementary invoices should be issued when there is a retrospective change in price, rate or value of capital goods, raw materials, components, inputs or input services, or for price variation in cleared finished goods; the seller must pay the differential duty with applicable interest, and issuing a supplementary invoice is recommended so the consignee can avail cenvat credit on the duty paid.