CMA Final · Indirect Tax Laws and Practice

Time of Supply: formula sheet

Key formulas

General rule, Section 12(2): Time of supply = earlier of (A) date of invoice, or last date for issuing it under Section 31, and (B) date of receipt of payment; Applies to goods on forward charge. Reverse charge is under Section 12(3).
Last date of invoice, movement of goods: Last date = on or before the date of removal of goods; Section 31(1)(a): invoice before or at the time of removal where supply involves movement.
Last date of invoice, no movement: Last date = on or before the date of delivery or making goods available to the recipient; Section 31(1)(b): any other case.
Date of receipt of payment: Earlier of (date entered in supplier's books) and (date credited to supplier's bank account); Explanation 2 to Section 12(2).
Extent of supply: Supply is deemed made only to the extent covered by the invoice or the payment; Explanation 1. Part payment fixes time of supply for that part only.
Excess payment proviso: Excess received up to ₹1,000 over the invoice amount: supplier may choose the invoice date for that excess; Option belongs to the supplier. It does not apply to excess above ₹1,000.
Interest, late fee, penalty: Time of supply = date the supplier receives such addition in value; Section 12(6), for delayed payment of consideration.

Goods general rule: Section 12(2), the earlier of two dates.
Date 1: the invoice date, or the last date by which the invoice had to be issued under Section 31.
Date 2: the date the supplier receives payment.
Payment received means the earlier of the date entered in books and the date credited to the bank.
Supply is deemed made only to the extent covered by the invoice or the payment.
Excess receipt of up to ₹1,000 over the invoice: the supplier may choose the invoice date for the excess.
Reverse charge on goods: the earliest of receipt of goods, payment date, or the day after 30 days from the supplier's invoice.
Reverse charge on services uses 60 days, not 30.
Vouchers: date of issue if the supply is identifiable, otherwise date of redemption.
Interest, late fee or penalty for delayed payment: the date the supplier receives it.
If the rate changes, Section 14 overrides Sections 12 and 13.

Taking the actual invoice date even when it is issued after removal of goods. Fix: Remember the clause: date of issue, or the last date by which the invoice was required to be issued. Late invoicing cannot defer the time of supply.
Using the date of delivery as the time of supply by default. Fix: Delivery matters only where goods do not move, as the last date for invoice. Where goods move, the removal date is the benchmark.

In the MCQ section, read the question for the invoice date, the removal or delivery date and both payment dates. Choose the earlier of the invoice-side date and the payment date.
Always write the two dates side by side in written answers, then state the earlier date and quote Section 12(2). Marks follow the working.
Watch for part payments and advances. Split the value and give the time of supply for each part.
Check whether the goods move. Quote Section 31(1)(a) or (b) to justify the last date of invoice.
Look for reverse charge hints in the question and switch to Section 12(3) if tax is payable by the recipient.