Skip to content

CA Intermediate · Taxation · Time of Supply

Ramesh & Co., a registered consulting firm, completed a service on 5 August. The invoice was issued on 28 September (service invoice due within 30 days of supply), and payment of Rs 1,00,000 was received on 15 August. Under the CGST Act, 2017, what is the time of supply of the service (forward charge)?

The time of supply is 5 August. Since the invoice was not issued within 30 days of providing the service, time of supply is the earlier of the date of provision of service and the date of payment, which is the service date of 5 August.

  1. A5 August, the date of provision of service
  2. B15 August, the date of paymentCorrect
  3. C4 September, the last date for issue of invoice
  4. D28 September, the actual invoice date

Explanation

For services, where the invoice is issued within the prescribed 30 days, time of supply is the earlier of invoice date and payment receipt date. If not issued within the period, it is the earlier of the date of provision of service and the date of receipt of payment. The invoice was issued on 28 September, i.e. after 30 days from 5 August (last date 4 September), so the second rule applies: earlier of 5 August and 15 August is 5 August. Hence option A is correct.

Did you get it right without looking?

One question tells you little. A timed set on Time of Supply shows your real accuracy, how long you take and where you lose marks.

Practise Time of SupplyFree diagnostic mock

More Time of Supply questions