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

Kiran Metals, a registered recipient, receives goods on 5 June on reverse charge basis. The supplier issued the invoice on 1 June. Kiran Metals paid, as entered in its books, on 20 June. Applying Section 12(3), the time of supply is:

The time of supply is 5 June. Under reverse charge, Section 12(3) takes the earliest of the date of receipt of goods, the payment date, and the day after thirty days from invoice. Receipt on 5 June precedes 20 June and 2 July.

  1. A1 June, the date of invoice
  2. B5 June, the date of receipt of goodsCorrect
  3. C20 June, the date of payment
  4. D2 July, the day after thirty days from the invoice

Explanation

Under reverse charge the time of supply is the earliest of: receipt of goods (5 June), payment date (20 June), and the day immediately following thirty days from invoice (2 July, since 30 days from 1 June ends 1 July). The earliest is 5 June. The invoice date is not a limb of Section 12(3).

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