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CA Final · Indirect Tax Laws · Time of Supply

Lotus Retail Pvt Ltd sells gift vouchers redeemable at any of its stores for any goods, with the goods not identifiable when the voucher is sold. A voucher of Rs 5,000 was issued to Mr Arjun on 3 January and redeemed against goods on 17 March. What is the time of supply of the voucher under section 12(4) of the CGST Act, 2017?

The time of supply is 17 March, the date of redemption. For vouchers, the date of issue applies only when the supply is identifiable at that point; where it is not, as with a voucher usable for any goods, the date of redemption determines the time of supply.

  1. A3 January, as the voucher was issued then
  2. B17 March, being the date of redemption of the voucherCorrect
  3. CThe date of receipt of payment by Lotus for the voucher in the books, whichever is earlier
  4. DThe date on which the periodical return for January is to be filed

Explanation

Section 12(4) provides that the time of supply of a voucher is the date of issue if the supply is identifiable at that point; in all other cases it is the date of redemption. Since the goods are not identifiable when the voucher is sold, the date of redemption, 17 March, applies. The issue date applies only where the supply is identifiable.

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