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CA Final · Indirect Tax Laws · Supply under GST

Ganga Foods Ltd purchased goods from an unregistered supplier on which tax is payable under reverse charge. Goods were received on 20 June. The supplier issued its invoice on 5 June, and Ganga Foods recorded the payment in its books on 25 June, with the bank debit on 28 June. What is the time of supply under section 12(3) of the CGST Act, 2017?

The time of supply is 20 June, because under section 12(3) it is the earliest of the receipt of goods, the payment date and the day after thirty days from invoice; receipt on 20 June precedes 25 June and 6 July.

  1. A5 June, the date of invoice
  2. B5 July, the day after thirty days from invoice
  3. C20 June, the date of receipt of goodsCorrect
  4. D25 June, the date of payment in books

Explanation

Under section 12(3) the time of supply is the earliest of: receipt of goods (20 June), payment date being the earlier of book entry or bank debit (25 June), and the date immediately following thirty days from invoice (6 July). The earliest is 20 June. The invoice date itself is not a trigger under reverse charge, so option A is wrong.

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