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

Goods were supplied by Kaveri Traders on 10 March, before a change in the GST rate effective 1 April. The invoice was issued on 20 March, and payment was received on 15 April. What is the time of supply under Section 14?

The time of supply is 20 March. The goods were supplied before the rate change, the invoice was issued before the change, and payment came after it. In that case Section 14 fixes the time of supply as the invoice date.

  1. A15 April, the date of receipt of payment
  2. B1 April, the date of change in rate
  3. C20 March, the date of issue of invoiceCorrect
  4. D10 March, the date of supply

Explanation

Goods were supplied before the rate change. The invoice was issued before the change, but payment was received after it. Section 14(a)(ii) makes the time of supply the date of issue of invoice, which is 20 March. Choosing 15 April wrongly uses the payment date, which applies in different fact patterns.

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