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

Gupta Engineers, a supplier of taxable services, issued an invoice of Rs 50,000 plus GST, but received Rs 50,800 against it from the client. Under the proviso to section 13(2) of the CGST Act, 2017, the time of supply for the excess Rs 800 is:

At the supplier's option, the time of supply for the excess Rs 800 is the date of issue of the invoice relating to that excess amount. The proviso allows this where the excess received over the invoiced amount is up to one thousand rupees.

  1. AThe date of receipt of the excess amount only, with no option to the supplier
  2. BThe date of issue of invoice relating to the excess amount, at the supplier's optionCorrect
  3. CThe date on which the recipient records the excess in his books
  4. DThe date of the return in which the supplier reports the excess

Explanation

The proviso says that where the supplier receives up to Rs 1,000 in excess of the amount indicated in the tax invoice, the time of supply for the excess is, at the supplier's option, the date of issue of the invoice relating to that excess. Rs 800 is within the limit. Treating it as mandatory on receipt ignores the option.

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