How to raise invoice if reciepient has just applied for gst registration

how to raise invoice if  reciepient has just applied for gst registration.

he just got ARN no.

Replies (2)
Quick Summary
This discussion addresses how to issue an invoice when the recipient has just applied for GST registration and has an ARN. Three potential methods are explored: issuing a B2C invoice (which prevents the recipient from claiming Input Tax Credit), issuing a B2C invoice now and later revising it to B2B once the GSTIN is active, or issuing a B2C invoice and then raising a credit note to issue a new B2B invoice. The user also seeks clarification on the mechanism of credit notes.

I can think of 3 options:

opt1: issue b2c invoice (not preferable as recipient would not get ITC later on)

opt2: issue b2c invoice now and revise the same as b2b later on (ensure GSTIN of the recipient is effective on the date of B2B invoice).

opt3: issue b2c invoice now. After you have GSTIN raise c/n and issue a new b2b invoice.

Mam,
Could u plz clarify the mechanism of credit note. When to issue and how to issue ?

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