Skip to content

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

A supplier of taxable goods issues a tax invoice for Rs 80,000 and receives Rs 80,700 from the recipient. Under the proviso to Section 12(2), what is the time of supply for the excess Rs 700 at the supplier's option?

At the supplier's option, the time of supply for the excess Rs 700 is the date of issue of the invoice in respect of that excess amount. The proviso allows this where the excess received over the tax invoice is up to Rs 1,000, so payment date need not apply.

  1. AThe date of receipt of the excess amount only, with no option
  2. BThe date of issue of invoice in respect of such excess amountCorrect
  3. CThe date of delivery of the goods
  4. DThe date of filing of the periodical return

Explanation

The proviso applies where the excess received is up to Rs 1,000 over the invoice amount. Here the excess is Rs 700, within the limit. At the supplier's option, the time of supply for that excess is the date of issue of invoice for that excess amount, instead of the date of receipt.

Did you get it right without looking?

One question tells you little. A timed set on Supply under GST shows your real accuracy, how long you take and where you lose marks.

Practise Supply under GSTFree diagnostic mock

More Supply under GST questions