CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Time of Supply
A registered buyer, Kaveri Traders, receives goods on 10 March from an unregistered supplier on which tax is payable under reverse charge. The supplier issued the invoice on 1 March. Kaveri paid the supplier on 25 March. What is the time of supply?
The time of supply is 10 March, because under the reverse charge rule for goods it is the earliest of receipt of goods (10 March), payment (25 March) and the day following thirty days from the invoice (31 March).
- A1 March
- B10 MarchCorrect
- C25 March
- D31 March
Explanation
Under section 12(3), take the earliest of: receipt of goods (10 March), payment (25 March), and the day after thirty days from invoice (31 March). The earliest is 10 March.
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