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CA Final · Indirect Tax Laws · Time of Supply

Himalaya Bazaar Pvt. Ltd. sells prepaid gift vouchers of ₹2,000 each on 12 June. A voucher can be redeemed at any of its stores for any goods, and the goods and their tax rates are not known when the voucher is issued. A customer redeems one voucher on 9 September. Under the CGST Act, 2017, what is the time of supply of goods for this voucher?

The time of supply is 9 September, the date of redemption. A voucher's time of supply is its issue date only when the supply is identifiable then. Since the goods and tax rates are unknown at issue, the voucher is a general one and tax falls due on redemption.

  1. A12 June, the date of issue of the voucher
  2. B9 September, the date of redemption of the voucherCorrect
  3. CThe date on which Himalaya Bazaar files its periodical return
  4. DThe date on which the voucher amount is credited to the bank, whichever is later than redemption

Explanation

For vouchers, the time of supply is the date of issue if the supply is identifiable at that point. Otherwise it is the date of redemption. Here the goods and rates are unknown at issue, so the supply is not identifiable and 9 September applies. Taxing on 12 June would be correct only if the supply were identifiable on issue.

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