CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Time of Supply
Gupta Metals must issue an invoice for a supply of goods by 12 April under section 31 but issues none. It receives payment on 25 April, enters it in its books on 24 April, and the amount is credited to its bank account on 22 April. No advance was received earlier. What is the time of supply?
The time of supply is 12 April. Even though no invoice was issued, the last date on which it was required to be issued counts, and it falls before the payment date of 22 April, which is the earlier of bank credit and book entry.
- A12 AprilCorrect
- B22 April
- C24 April
- D25 April
Explanation
Section 12(2)(a) includes the last date on which the invoice is required to be issued, even if not issued. That is 12 April. Payment is received on the earlier of book entry (24 April) and bank credit (22 April), i.e. 22 April. The earlier of 12 April and 22 April is 12 April. Choosing 22 April ignores the invoice due date limb.
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