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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Time of Supply

Gupta Metals, a registered recipient, purchases goods on reverse charge. Which statement is correct about the proviso to the reverse charge time of supply rule for goods?

Where the time of supply under reverse charge for goods cannot be fixed by receipt of goods, payment, or the thirty-day rule, it is the date of entry of the supply in the books of account of the recipient.

  1. AIf none of the three dates can be determined, the time of supply is the date of entry in the recipient's books of accountCorrect
  2. BIf none of the dates can be determined, the time of supply is the date of issue of invoice by the recipient
  3. CIf none of the dates can be determined, the time of supply is the date of dispatch by the supplier
  4. DIf none of the dates can be determined, the time of supply is the last date for filing the supplier's return

Explanation

The proviso to the reverse charge rule for goods provides that where the time cannot be determined under receipt, payment or the thirty-day clause, the time of supply is the date of entry in the books of account of the recipient. The other options have no basis in the section.

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