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CA Intermediate · Taxation · Time of Supply

Anand Consultants, a registered firm in Pune, provided consulting services to a client. Invoice was issued within the permitted period on 18 July 2026. Service was completed on 10 July 2026 and payment of ₹5,00,000 was received on 25 July 2026. Invoice was issued within 30 days of service provision. Under the CGST Act, what is the time of supply of services (forward charge)?

The time of supply is 18 July 2026. Where the invoice is issued within the prescribed 30 days, the time of supply of services is the earlier of the invoice date and the payment receipt date. Invoice on 18 July precedes payment on 25 July.

  1. A10 July 2026
  2. B18 July 2026Correct
  3. C25 July 2026
  4. D30 July 2026

Explanation

For services where invoice is issued within the prescribed period (30 days), time of supply is the earlier of the date of invoice and the date of receipt of payment. Invoice is 18 July and payment 25 July, so earlier is 18 July. The date of completion (10 July) applies only when invoice is not issued within the period. Hence 18 July.

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