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

A supplier issues a tax invoice for ₹50,000 on 3 March and receives ₹50,600 in total on 10 March, so ₹600 is in excess of the invoice. Under the proviso to Section 12(2), what is the time of supply for the excess ₹600?

At the supplier's option, the time of supply for the excess ₹600 is the date of issue of the invoice for that excess amount. The proviso to Section 12(2) allows this where the excess received is up to one thousand rupees.

  1. A10 March in all cases
  2. BDate of issue of invoice for the excess amount, at the supplier's optionCorrect
  3. CThe date of filing the return for March
  4. D3 March automatically

Explanation

The proviso applies where the excess is up to ₹1,000. The supplier may choose the date of issue of invoice in respect of the excess amount as its time of supply. It is an option, so 10 March is not compulsory, and 3 March is not automatic because that invoice did not cover the excess.

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