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CA Final · Indirect Tax Laws · Time of Supply

Gift Hamper Retail Pvt. Ltd. sells prepaid vouchers. Voucher A is redeemable only for a specified product at a known GST rate, so the supply is identifiable when issued. Voucher B is a general-purpose voucher redeemable for any goods in the store. Both were issued on 5 January and redeemed on 20 March. Under section 12(4), what are the times of supply for A and B respectively?

Voucher A has time of supply on 5 January and Voucher B on 20 March. Under section 12(4), a voucher whose supply is identifiable at issue is taxed at issue date, while in all other cases the time of supply is the date of redemption.

  1. ABoth 5 January
  2. BA: 5 January; B: 20 MarchCorrect
  3. CA: 20 March; B: 5 January
  4. DBoth 20 March

Explanation

Section 12(4) states the time of supply of a voucher is the date of issue if the supply is identifiable at that point, otherwise the date of redemption. Voucher A is identifiable, so 5 January. Voucher B is not identifiable at issue, so redemption date 20 March applies. Reversing them mixes up the two limbs of the rule.

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