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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Time of Supply

A registered supplier issues a tax invoice for services for Rs 80,000 and receives Rs 80,700 from the recipient, i.e. Rs 700 in excess of the invoice amount. Under the CGST Act, 2017, what is the time of supply for the excess Rs 700?

At the supplier's option, the time of supply for the Rs 700 excess is the date of issue of the invoice for that excess amount. The proviso allows this because the excess received is up to Rs 1,000.

  1. AThe date of receipt of the excess amount, always, since it is an advance
  2. BThe date of issue of invoice for the excess amount, at the option of the supplierCorrect
  3. CThe date of provision of service, compulsorily
  4. DThe date on which the recipient shows the receipt in his books

Explanation

The proviso to section 13(2) says that where the supplier of taxable service receives an amount up to one thousand rupees in excess of the invoice amount, the time of supply to the extent of the excess is, at the supplier's option, the date of issue of invoice for that excess. Rs 700 is within the Rs 1,000 limit. The 'always' options ignore the option.

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