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CA Final · Indirect Tax Laws · Supply under GST

Gandhar Retail Pvt Ltd issues gift vouchers. On 2 March it sold a voucher of Rs 5,000 that can be redeemed only at its own stores for any goods on offer, so the specific goods are not identifiable. On 9 March it sold a second voucher of Rs 3,000 that is valid only for one named model of mixer-grinder. The first voucher was redeemed on 20 April and the second on 15 May. Under Section 12(4), what are the times of supply for the two vouchers?

The first voucher is supplied on 20 April and the second on 9 March. Under Section 12(4), a voucher is supplied on issue if the supply is identifiable then, and on redemption otherwise. The general voucher is not identifiable, while the one for a named mixer-grinder is.

  1. A2 March for both vouchers
  2. B20 April for the first and 9 March for the secondCorrect
  3. C2 March for the first and 15 May for the second
  4. D20 April for the first and 15 May for the second

Explanation

Under Section 12(4), the time of supply of a voucher is the date of issue if the supply is identifiable at that point, and otherwise the date of redemption. The first voucher is usable for any goods, so the supply is not identifiable and the time is redemption, 20 April. The second names a specific model, so the supply is identifiable and the time is issue, 9 March.

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