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CS Executive · Tax Laws and Practice · Time, Value and Place of Supply

Goods are supplied by a registered supplier before a change in the rate of GST. The invoice is issued before the rate change, but the payment is received after the rate change. Under the CGST Act, 2017, what is the time of supply?

The time of supply is the date of issue of invoice. When the supply is made and the invoice issued before the rate change, a later payment does not shift the time of supply, so the old rate applies.

  1. ADate of issue of invoiceCorrect
  2. BDate of receipt of payment
  3. CDate of the rate change
  4. DDate of removal of goods, ignoring the invoice date

Explanation

Where goods or services are supplied before the rate change, the invoice is issued before the change and payment is received after it, the time of supply is the date of issue of invoice. Payment date applies only in other combinations, such as advance received before the change with the invoice issued after it.

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